Corporate travel budgets to rise through 2024

But virtual meetings adoption could quickly pick up further in an economic downturn if corporates have to cut cost, according to Morgan Stanley

Heading into the second half of 2023, travel budgets show no sign of retreating even as corporate travel leaders look to reduce costs with virtual meeting technologies, according to Morgan Stanley research.

Key takeaways

• Travel managers expect second-half 2023 travel budgets to be up more than 9 percent on average year over year and project a strong 2024;
• Projected budget increases for corporate travel spending for 2024 is materially above consensus full-year 2024 RevPAR increase expectations for the largest hotel brands, which forecast 2024 RevPAR growth to be 1 percent to 4.5 percent year over year;
• Travel managers also cited cost-saving measures amid rising pricing and spend expectations as well as macroeconomic uncertainty as significant barriers to business travel, with some TMCs scaling down hotel tiers to reduce costs.

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