Global corporate travel a casualty of Donald | Australian Markets
Optimism within the world business travel sector has dropped by more than half this yr, in accordance with a report printed by the Global Business Travel Association.
Positive sentiment fell from 67 per cent in November 2024 to 31 per cent in April 2025, in accordance with the report which surveyed more than 900 business travel professionals on the have an effect on of tariffs, tightened border insurance policies and different US authorities insurance policies introduced this yr.
More than one in 4 respondents in Canada, the US and Europe mentioned they felt “pessimistic” or “very pessimistic” concerning the industry outlook this yr.
However, 40 per cent of these surveyed mentioned they felt neither constructive nor detrimental.
“Since I have been in my role for four years, I haven’t seen this high of a level of uncertainty,” Suzanne Neufang, the affiliation’s CEO, mentioned.
The survey confirmed almost 30 per cent of business travel consumers anticipate their corporations will cut back worker journeys this yr, whereas some 20 per cent mentioned they weren’t sure, it confirmed.
“They’re not even confident enough to be able to say things will be fine or things won’t be fine,” she mentioned.
Some 27 per cent of respondents additionally mentioned they anticipate business travel spending to lower as effectively.
Long-term considerations
A 3rd of business travel consumers mentioned their corporations have both modified, or are contemplating altering, insurance policies concerning travel to or from the US, the report confirmed.
Some 6 per cent mentioned their corporations had relocated occasions from the US to a different nation.
“From an APAC perspective, and certainly from a European perspective, maybe even LATAM, there’s the opportunity to be the source of where these meetings take place,” Neufang mentioned. “There are many other opportunities to be a winner in this trade game.”
Business travel professionals expressed a number of considerations concerning the potential for the long-term affect brought on by choices of the Trump Administration this yr, led by worries over business travel prices (54 per cent) and issues processing visas (46 per cent).
Global airfares, nonetheless, are barely down — about $US17, or 2.2 per cent year-to-date — in accordance with FCM Consulting, a division of the business travel company FCM Travel.
Not all ‘doom and gloom’
Nevertheless, the worldwide business travel market remains to be on monitor to high $US1.6 trillion by the tip of 2025, Neufang mentioned.
However, she mentioned that’s solely “if the last 100 days don’t impact negatively everywhere”.
By 2028, the Global Business Travel Association expects, that quantity will cross the $US2tr mark, she mentioned. She famous that whereas business travel volumes haven’t returned to pre-pandemic ranges, business travel spending totally recovered in 2024, partly as a end result of inflation.
But she mentioned the trade warfare initiated by the Trump Administration might spell a bout of new business journeys.
“During times of trade wars, business travel may actually increase for at least a period of time — for new partners to be found [and] new markets to be built,” she mentioned. “You lose a customer, you need to find another one. So I think that perspective doesn’t mean all doom and gloom for us.”
However, if tariffs stay elevated, “There will definitely be an impact to U.S. travel … But I think Europe, Asia, Europe to Asia, Asia to Europe. I think anywhere to Africa, all of those are probably fine.”
Leisure travel to the United States has fallen in 2025. International customer spending is projected to drop 4.7 per cent from 2024, representing some $8.5 billion for the U.S. travel industry, in a yr revenues had been as soon as extensively anticipated to grow.
CNBC
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