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The Global Business Travel Association (GBTA) has revealed that business travel in Western Europe is expected to recover and reach 2019 spending levels in 2026.
In this regard, Regional Vice President, EMEA and APAC for GBTA Catherine Logan said that Europe is also predicted to become the fastest growing market for business travel this year, with spending on business travel expected to grow by 25.3 per cent as well, SchengenVisaInfo.com reports.
“In 2021, Western European business travel spending continued to be hit by the pandemic more than any other region in the world. As restrictions eased and borders re-opened, a significant pent-up demand led to a surge in business travel spending across the region,” Logan also added.
According to GBTA data, business travel spending in Europe now accounts for approximately 20 per cent of global expenditure compared to 27 per cent in 2019.
The same source also said that recovery in Western and emerging Europe has lagged compared to North America, Asia Pacific, Latin America and the Middle East. Thus, in 2020, business travel spending in Europe fell by 58.1 per cent, which was the second-largest percentage decline of any global region.
A year later, most of the world saw a mild recovery. However, business travel spending fell by an additional 15.4 per cent to $139 billion in Europe.
Although Europe had previous declines, it remained the third largest business travel region, with 20 per cent of global spending last year. In addition, Western Europe accounts for 86 per cent of Europe’s business travel spending, while developing Europe accounts for the remaining 14 per cent.
Last year, business travel spending in Western Europe grew by 23 per cent, recovering to $194 billion, or 58 per cent of pre-pandemic spending levels. At the same time, business travel spending in emerging Europe rebounded by 53 per cent to $30.8 billion.
Germany and Great Britain, the most important European markets, have recovered less than the wider region. Meanwhile, France, Spain, and three Nordic markets, Sweden, Denmark, and Norway, have recovered more than the wider region.
Turkey has also returned to 87.1 per cent and Poland to 72.1 per cent of its pre-pandemic business travel expenditures. The Compound Annual Growth Rate (CAGR) in business travel spending in Western Europe between 2021-2026 is expected to be 23.4 per cent and 10.9 per cent in developing Europe.
Moreover, the manufacturing industry remains the largest in Europe, with 61.5 billion dollars of annual expenditure on business travel. It has also reached 63 per cent of pre-2019 spending levels and exceeds Europe’s overall recovery level of 57 per cent.
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