CHICAGO — Deloitte has published the third edition of its study on business travelwhich reports that travel to attend in-person events is the top driver of spending growth in 2023, up from fifth place in 2022. Business travel is on the rise, both for industry conferences and internal company events, according to Deloitte, and is expected to return to pre-pandemic levels by late 2024 or early 2025.
The growth of live events was cited as the top driver of business travel spending growth, with professionals traveling to meet with clients and prospects and connect with global industry networks at trade shows and events. Attendance at live events has moved from the fifth-largest driver of spending growth in 2022 to the top driver in 2023 for U.S. companies.
According to more than 50% of respondents in the United States and Europe, increased event attendance is expected to drive travel growth in 2023, and in the United States, event attendance is the primary driver of international travel.
“It’s critical for event organizers to address the networking aspect of their conferences and exhibitions,” said Peter Caputo, U.S. hospitality leader and principal at Deloitte. “That means ensuring they continue to attract high-profile attendees, such as decision-makers and industry leaders; providing the space, both physically and in the event program, for attendees to organize and conduct meaningful meetings; and offering a mix of content and social events that help attendees build new relationships.”
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According to the report, spending is expected to reach 57% of 2019 levels in the first half of 2023 and reach two-thirds by the end of 2023. As international travel increases, U.S. survey respondents expect international travel’s share of travel costs to increase from 21% in 2022 to 33% in 2023, and European respondents expect it to reach 32% of spending on the continent and 28% outside of it in 2023.
“Business travel is slowly but surely returning. Business leaders and suppliers are considering not only the rising costs of travel, but also the need for some in-person meetings amid increasing use of technology to offset financial and environmental goals,” Caputo said.
The Deloitte report is based on a survey of 334 travel managers and executives in the United States and Europe, conducted from February 7 to 23, 2023.
Contact Peter Caputo at (212) 436-2056