market outlook FIGURE 16: CORPORATE TRAVEL OUTLOOK
2025 budgets compared with 2024 Don’t know
Significantly lower*
Lower 15% 45% 31%
About same
*25% or more higher or lower year on year
Considering limit on travel
19% 31%
Wait-and-see approach
Source: GBTA, October 2024 Base: 895 GBTA members
cuts in oil production later this year. Chinese growth will see a modest slowing but won’t weaken sharply, partly because of government stimulus packages. There are still concerns about consumer demand in China, but risks of a readjustment seem to have been arrested for now. Indian growth is set to remain steady at 6.5%, making it the world’s fastest-growing major economy.” Despite expectations that rapid
developments in generative AI will raise productivity, De does not see that feeding through into economic growth for a while. He said: “We expect productivity
gains from technology such as generative AI to show up in the medium term. We asked business leaders in one of our CFO
FIGURE 17:
CORPORATE TRAVEL To meet 2030
FORECAST REDUCTION IN
‘Above 30%’
sustainability targets Reduction required? ‘Below 10%’
‘10%-20%’ 6%
10% % of
1% 7% 1%
Significantly higher*
Higher 17% Impact of economic outlook
to limit business travel
Plan
Don’t know
9%
Unlikely to limit travel
24%
surveys last year what AI could do for their businesses. An overwhelming majority see their businesses investing more in new technology and expect it to drive productivity gains in a five-year timeframe. So, even those much closer to the deployment of AI than us economists think we’ll have to wait a bit to see an impact.”
‘PEOPLE WILL WANT TO TRAVEL’
What, then, are the implications for consumer demand for travel in 2025? Pritchard noted: “Employment
generally remains strong, and we expect wage growth. So, employees should feel reasonably confident about their jobs. The public sector should see a bounce on the back of investment announced in the Budget, so there will be a chunk of UK consumers feeling reasonably optimistic. However, businesses might feel 2025 could be more challenging. “The impact of the Budget measures
31% managers
corporate travel
‘21%-30%’ Source: Deloitte corporate travel manager survey, 2024 FIGURE 18: MAIN FACTORS WHEN BOOKING A HOLIDAY
Accommodation Holiday price Destination
recommendation Partner/children's
% of UK adults planning an overseas holiday in 2025 51%
49% 32%
Flights from local airport
wishes Social media 0 9% 10 20 30 % 40 50 60 % point change YoY 22% 21%
+8 +7 +6 +2
-1 -1
Main factors, by age group, child status
20 40 60 80
0 % 69% 62% 47% 38% 15% 16-24 36% 20% 13% 4% 25-34 35-44 Destination Price 45-54 Social media Source: Service Science/Kantar, January 2025 Base: 925 UK adults planning an overseas holiday 55+ 0% Child 14% 42% 36% 42% 34% 59% 52% 43% 53%
on businesses will feed through to how consumers [in work] feel as businesses put cost controls in place and probably tighten recruitment, which will ultimately impact on wage growth. So, in the short term, there is some confidence, which is important in terms of bookings, but as we go through the year it could become a bit more challenging.” Corporate travel volumes have yet to return to 2019 levels although higher
Travel Weekly Insight Report 2025 13
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
