A new report by Corporate Travel Management highlights the resilience of the corporate travel industry, with capacity above 2019 levels and business travellers flying longer distances.
It also shows that booking lead times are extending and average daily rates for accommodation are beginning to plateau globally.
The key takeaways from CTM’s Global Corporate Travel Trends Report include:
Airline seat capacity recovers
Airlines are scaling operations to meet growing demand, particularly in major corporate travel hubs where full-service carriers have expanded networks.
All major full-service airlines saw capacity grow in 2024, with some of the world’s largest airlines achieving higher growth percentages than the global growth average (6%). Continued investment in fleet expansion to meet demand saw record aircraft orders with over 1,600 new aircraft deliveries expected in 2025.
Business travellers flying further
The average distance travelled by major corporate travel markets increased significantly in 2024. Stabilised airfares across most regions gave corporate travel managers more budget clarity following sharp price increases in 2023.
European travellers led the way, with British travellers flying further than any other nation compared to 2019 figures. French business travellers covered longer average distances in 2024 due to Government-imposed sustainability restrictions on domestic air travel.
India’s rapidly growing corporate travel market saw an increase in travel distances, with North America emerging as a key destination for travellers from the Indian subcontinent.
Airfares stabilise
Following ongoing price increases since March 2020, airfares entered a downward trend in 2024. Economy fares declined more sharply, with business class fares maintaining a consistent trajectory. This softening suggests a potential market correction following the strong price recovery during the past two years.
European business class fares rose due to a surge in demand for corporate and premium leisure, coupled with limited seat availability. Meanwhile, in North American fares stabilised as airlines added Transpacific and Transatlantic capacity to match demand, balancing the market after years of volatility.
Booking lead times shift
Trends indicate a subtle shift towards travellers booking flights 15 days or more before departure. Before 2020, travellers often booked well in advance to secure lower fares and accommodate predictable schedules. The uncertainty of the pandemic led to a surge in last-minute bookings as travellers navigated fast-changing travel rules.
In 2024, bookings made 15 to 21 days before travel reached their highest levels since 2019. Bookings made more than 21 days in advance have declined slightly compared to 2023.
North America saw the most significant shift, with 35% of travellers booking 21 days or more in advance of travel. Europe and ANZ also witnessed an increase in 21+ day bookings. In Asia, travellers are booking closer to departure, driven by a growing low-cost carrier presence.
Average daily rates plateau, lead times shift
Corporate accommodation demand remains strong, with average daily rates (ADRs) plateauing globally at 20-30% above 2019 levels.
Global hotel booking lead times have shifted since 2019, with fewer reservations made within seven days of travel (52% vs 61% in 2019) and more bookings secured 21 or more days in advance (24% vs 18% in 2019). This trend signals a desire to lock in rates and secure availability in advance.
Europe, Air New Zealand and Asia are leading the way, with 34% of bookings in ANZ, 36% in Asia and 32% in Europe made 21 or more days in advance. Last-minute bookings remain dominant in North America, with 64% made within seven days.
Michael Healy, CTM CEO Europe, said: “Our second Global Corporate Travel Trends Report underscores the robust recovery and expansion of corporate travel globally as we experience a strong period of growth with positive trends emerging across key areas.
“Within our EU business, 2024 has seen record new client acquisition along with significant growth in our existing client activity, positioning CTM in a significant growth trajectory within the market.”
