The recovery of business travel post-pandemic has hit a snag due to the U.S. trade war and increasing economic uncertainty. Suzanne Neufang, CEO of the Global Business Travel Association (GBTA), highlights that despite earlier projections of a rise in global travel spending, more pessimistic forecasts have emerged. Approximately 29% of corporate travel managers anticipate a decline in business travel in 2023, potentially impacting trips by up to 22%).
Industry experts note that while expectations have cooled, bookings haven’t drastically dropped yet. Jonathan Kletzel from PwC asserts that business travel remains constrained but is far from collapsing. Delta Air Lines CEO Ed Bastian reported a slowdown in travel demand, linked to companies reassessing travel plans and cuts in federal staffing. Other airlines are adjusting growth forecasts due to these market dynamics.
The hospitality sector is also feeling the strain, with major hotel chains like Marriott and Hilton revising their financial outlooks downward. Government-related travel has faced significant declines, particularly impacting bookings for agencies serving government contractors.
As travel costs are closely scrutinized amid fresh tariffs and policy changes, experts warn that corporations may start cutting travel expenditures. Meanwhile, individual travelers are showing signs of anxiety, reflected in a notable increase in searches and purchases for travel insurance covering cancellations for work reasons. The current sentiment indicates a mixed outlook, with leisure travel expected to be affected more than business travel. Overall, executives advocate a “wait-and-see” approach, anticipating a slow year for all travel in the U.S. market in 2025.
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