How big is the business travel industry?

The business travel industry has experienced a rollercoaster ride over the past few years, marked by both unprecedented highs and dramatic declines. In 2019, Americans spent a record-breaking $1.4 trillion on business travel, solidifying its status as a vital component of the global travel economy, accounting for 20% of worldwide travel expenditures. However, the pandemic brought the industry to a standstill, with spending plummeting to $661 billion in 2020—less than half of the previous year's total. Despite these challenges, the business travel sector is on a path to recovery. Projections from the US Travel Association indicate that by 2024, business travel will rebound to nearly 95% of its 2019 levels, signaling a robust return to form. Each year, Americans embark on over 405 million business trips, underscoring the critical role that business travel plays in daily commerce. Supporting this optimistic outlook, a 2023 survey by Mastercard reveals that 88% of travel decision-makers believe business travel is essential for driving organizational growth. Moreover, 90% of respondents anticipate that the expansion of hybrid and remote workforces will lead to a significant increase in business travel over the next decade. As we navigate the future of corporate travel, these statistics highlight the enduring importance of business travel in a rapidly changing world.

1. Americans spent $1.4 trillion on business travel in 2019, which was an all-time high.
2. The pandemic decimated the business travel industry; business travel spending in 2020 was $661 billion – less than half what it was in 2019.

3. Business travel is predicted to return to nearly 2019 levels in 2024; the US Travel Association forecasts that business travel will be 95% recovered when compared to 2019. 
4. In 2019, and again in 2023, business travel accounted for 20% of global travel expenditures.
5. Americans take over 405 million business trips each year, which means over 1 million people are traveling for business every day. 
6. According to a 2023 survey conducted by Mastercard, 88% of travel decision makers agree with the statement “Business travel is critical for driving our organization’s growth.”
7. The same survey found that 90% of travel decision makers feel that “Our growing hybrid/remote workforce will significantly increase the amount of business travel our organization does over the next 10 years.”

Who travels for business, and why?

The demographics and motivations behind business travel reveal key insights into who is traveling and why. According to the US Bureau of Transportation, 77% of business travelers are men, highlighting a gender disparity in corporate travel. On average, these travelers take 6.8 business trips per year, underscoring the frequency with which business professionals are on the move. Education plays a significant role in business travel, with 63% of business travelers holding a bachelor’s degree, reflecting the high level of education among those who frequently travel for work. For many, the primary benefit of business travel lies in its ability to foster new client relationships and prospecting opportunities—an advantage cited by 62% of business travel decision-makers. Moreover, the impact of business travel extends beyond just professional growth. Nearly 48% of decision-makers believe that cutting back on business travel could lead to a 10% increase in employee turnover within the next three years, suggesting that business trips are integral to employee satisfaction and retention. Supporting this, nearly 80% of business travelers report that traveling for work enhances their job satisfaction. The trend of combining work with leisure, known as bleisure trips, is also on the rise. A significant 67% of these trips begin with the intention of attending a conference, blending professional obligations with personal time. These statistics shed light on the enduring value of business travel—not only in terms of business development but also in contributing to employee well-being and work-life balance.

8. 77% of business travelers are men, per the US Bureau of Transportation.
9. The average business traveler takes 6.8 business trips per year.
10. Business travelers are highly educated; 63% have a bachelor’s degree.
11. 62% of business travel decision makers say that the top benefit of business travel is building new client relationships and prospecting. 
12. 48% of business travel decision makers say that reducing business travel would cause employee turnover to increase by at least 10% over the next three years.
13. Looking at bleisure trips, which combine business and leisure, 67% start with a plan to attend a conference.
14. ​​Nearly 80% of business travelers say that traveling for business boosts their job satisfaction.

Business travel booking behavior

The business travel booking landscape has seen significant shifts, particularly in the wake of a changing work environment. American Express Global Business Travel, the largest platform in the sector, reported a remarkable increase in sales, reaching $28 billion in 2023—up from $23 billion in the previous year. This growth reflects the ongoing demand for business travel, even as companies navigate the complexities of a hybrid work model. However, this new work landscape has introduced challenges in managing business travel logistics. According to 86% of business travel decision-makers, coordinating travel in a hybrid environment has become more difficult. One notable issue is the continued use of personal credit cards for work-related travel expenses, with 1 in 3 decision-makers acknowledging that their employees still resort to this method. The booking behavior of business travelers has also evolved, with technology playing a more prominent role. A 2022 survey found that approximately 40% of business travelers now book their hotel stays via smartphones, indicating a shift towards mobile convenience. Additionally, 56% of business travelers prefer to handle their own bookings for hotel rooms and flights, while 44% rely on someone else to make these arrangements. The synchronization of bookings remains a common practice, with 45% of business travelers often booking their hotels and flights simultaneously, and 29% always doing so, according to a survey by the Global Business Travel Association. These statistics underscore the ongoing evolution of business travel booking practices, influenced by technological advancements and the demands of a more flexible work environment.

15. The largest business travel booking platform, American Express Global Business Travel, hit $28 billion in sales in 2023, up significantly from $23 billion in 2022.
16. The new hybrid work landscape has made business travel logistics more challenging, say 86% of business travel decision makers.
17. 1 in 3 business travel decision makers say that employees at their organization still use their personal credit cards to book work travel.
18. A 2022 survey found that about 40% of business travelers book their hotel stays on their smartphones.
19. 56% of business travelers book their own hotel rooms and flights, while 44% have someone else book on their behalf.
20. 45% of business travelers “often” book their hotel stays and flights at the same time, while 29% “always” book hotels and flights at the same time, according to a survey conducted by the Global Business Travel Association.

Fun facts about business travel

The financial dynamics of business travel reveal the substantial impact that corporate trips have on both travel expenses and the broader economy. New York City tops the list as the world’s most expensive destination for business travel, with daily costs averaging a staggering $799. Geneva follows closely behind, with daily expenses of $716, highlighting the significant financial commitment required for travel to these global business hubs. Despite representing just 12% of total passenger volume, business travelers are a critical revenue source for airlines, contributing a whopping 75% of their profits. This statistic underscores the value of business travel to the aviation industry, with companies like Amazon leading the charge. In 2022, Amazon topped the list of American corporate spenders on business air travel, with an expenditure of $483 million on flights alone. When breaking down a typical corporate travel budget, lodging consumes the largest share at 34%, followed by meals at 20%, and flights ranging between 17% to 27%. These figures illustrate the diverse allocation of expenses that companies must manage to support their business travel needs. The cost of business trips varies significantly depending on the destination. In 2023, the average domestic business trip in the U.S. cost $1,293, while international business trips were considerably more expensive, averaging $2,600 per trip. These figures highlight the substantial investment required for companies to maintain their presence in both domestic and international markets, further emphasizing the importance of strategic budgeting and planning in corporate travel.

21. New York City is the world’s most expensive destination for business travel, with daily costs averaging $799. Geneva is in second place, with daily costs averaging $716.
22. Business travelers represent 75% of an airline’s profits while representing just 12% of total passenger volume. 
23. Amazon spent the most on business air travel out of any American company in 2022; the company spent $483 million on flights.
24. A corporate travel budget usually breaks down to roughly 34% spent on lodging, 20% on meals, 17% to 27% on flights, and the remainder on other expenses.
25. The average domestic business trip cost $1,293 in 2023. International business trips cost significantly more, at $2,600 per trip.