In April, The Wall Street Journal reported that companies are sending employees back on the road again, driving business travel closer to pre-pandemic levels. The spike was spurred by people who want to meet in person again or attend trade events, where in-person attendance is once again the norm. Leisure travel bounced back much faster than business travel post-Covid, but airlines and hotels say that banks, tech companies and consultants – among the travel industry’s most lucrative customers – are hitting the road again.
Airlines reported big increases in revenues from corporate accounts in the first quarter of this year, with Delta and United both reporting a 14% bump from 2023. Alaska Air said corporate travel sales rose 22% in the first quarter, back to pre-pandemic levels. United said it has had nine of its top 10 corporate booking days in its history this year. Southwest Airlines said revenue from business travel jumped 25% from a year ago in the first quarter, roughly back to 2019 levels.
Hilton Worldwide Holdings Chief Executive, Chris Nassetta, said the resilient economy and strong employment helped shore up business travel. Demand from small and medium-size companies is already above 2019 levels, he added in April.
Spending on business travel worldwide is expected to surpass 2019 levels by the end of this year, according to the Global Business Travel Association’s most recent projection – earlier than the mid-2026 recovery previously predicted.
Source: The Wall Street Journal
