Skift Take
Group demand increased in 21 of the top 25 hotel markets in the first half of 2024, but inflation-adjusted levels overall remain below 2019. Meetings and exhibitions are the main driver of this growth, with regions such as Asia Pacific and North America seeing strong recoveries.
Andrea Doyle
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In the first half of 2024, 21 of the top 25 hotel markets saw higher group demand for meetings than last year, according to CoStar Analytics.
That’s good news. But looking at the bigger picture, far fewer markets surpassed 2019 levels. Only five managed to do so: Tampa, Orlando, Dallas, Nashville and Las Vegas. (Group rooms are rooms sold in groups of 10 or more, according to CoStar.)
a Deloitte Report A survey from July said conferences, trade shows and exhibitions are playing a big role in travel growth, with more than six in 10 business travelers expecting to attend at least one in 2024.
A quarter of travel managers expect conference attendance to be the biggest driver of travel growth in 2023 and to continue in 2024. Half rank conferences as their top two drivers of growth. According to the Deloitte report, six in 10 travelers say they plan to travel for conferences in 2024, far outpacing all other travel types in terms of travel volume.
The growth of meetings
Event volume in 2024 is stable compared to 2023. According to data from meetings information provider Knowland, U.S. event volume in July was up 5% year-over-year. In the second quarter, estimated attendee numbers increased 23% and space utilization increased an average of 28%.
“Meetings are becoming larger and a little longer,” said Jeff Buzdorka, CEO of Knowland.
for Hilton’s Second QuarterMeetings and events stood out. “For the full year, we see growth across all segments globally,” said Hilton CEO Chris Nassetta. “Short-term leisure stays are very low, but we expect positive growth. Short-term business stays are a little higher, but meetings and events are doing very well.”
Business travel spending expected to hit record high
Global business travel spending is expected to reach a record high of $1.48 trillion by the end of 2024. That’s up from $1.43 trillion in 2019, according to the Global Business Travel Association (GBTA). Annual Global Report And here is the forecast that was just released.
Global business travel spending is projected to exceed $2 trillion by 2028. Despite these figures, when adjusted for inflation, spending levels remain below pre-pandemic highs.
Inflation, a slow recovery in China, geopolitical tensions, industry workforce issues and natural disasters are all headwinds.
Growth is expected to gradually slow to a compound annual growth rate of 6.95% from 2025 to 2028.
The recovery of business travel was not the same across all regions: the region with the fastest growth in 2023 was Asia Pacific (36%), followed by Eastern Europe (33%) and North America (25%).
China and the United States are expected to be the top two markets for overall business travel spending this year.
The most common travel purpose among all business travelers was attending a meeting, seminar or training, followed by attending a convention.
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Photo credit: AnnaStills / Envato
