U.s. Actions Drive Uncertainty In Global Business Travel, Leading To Revenue Losses And Reduced Spending: New Report

Wednesday, July 16, 2025

The business recreation manufacture finds itself astatine an inflection constituent successful 2025, amid mounting world uncertainty. The U.S. published successful recreation advisories to its citizens and nan E.U. combats xenophobia successful nan world community—are altering nan world business scenery successful existent time, and companies are adjusting their recreation strategies successful ray of nan caller risks. “A UNITED SICKLE”: GBTA REPORT HIGHLIGHTS DAMAGE TO BUSINESS TRAVEL INDUSTRY As America continues nan conflict against nan COVID-19 pandemic, Global Business Travel Association (GBTA) sent results from its 4th coronavirus canvass successful a caller study released.

Key findings from GBTA’s GLOBAL BUSINESS TRAVEL OUTLOOK – July 2025 (conducted 9-14 July 2025) of 950 respondents, including firm recreation buyers, suppliers, recreation guidance companies (TMCs) and different manufacture stakeholders astir nan world successful 45 countries, constituent to expanding pessimism for nan equilibrium of nan year. Increasingly, galore companies are rethinking really overmuch they recreation and walk connected travel, peculiarly recreation overseas. And pinch much and much businesses emotion nan strain of extracurricular influences, nan business recreation scenery is becoming much even-sided extracurricular of nan U.S., wherever companies are looking further afield to little risky areas.

Supplier Revenue Concerns Deepen

That expanding fearfulness complete business recreation is now starting to show, particularly connected nan supplier side. Lodge suppliers are nan astir concerned, pinch 48% of suppliers anticipating a alteration successful business recreation revenue. Over half (58%) of accommodation providers expect their bookings to diminution compared pinch conscionable 37% successful Q2. Suppliers expect a 17 percent mean driblet successful revenue, which was smaller but much dispersed retired than earlier forecasts.

Softening business recreation measurement outlook, world recreation hit

The study shows a mini alteration successful business recreation measurement expectations; 34% of buyers expect alteration successful trips for 2025. That’s a immense jump from April’s 29%. Average cuts to recreation budgets are now expected to beryllium 19%, up from a erstwhile forecast of 21%. But world recreation is apt to suffer nan most. Those surveyed judge that world business recreation will autumn by 49% pinch nan mean measurement of business recreation falling by 19%. Domestic and intra-regional business travel, by contrast, is forecast to shrink by only 23%.

Spending Remains a Concern

The early forecast for business recreation spending remained concerning. A 3rd of business recreation buyers (31%) expect a alteration successful their spending by 2025, reflecting really they felt successful April (27%). The projected alteration successful recreation spending, connected average, has dipped to 17 per cent (down from 20 per cent), nan scale suggests. These cuts besides bespeak some nan uncertainty astir what nan U.S. authorities is going to do and nan tightening financial business of businesses worldwide.

Regional Differences successful Optimism

Worldwide optimism is still reigned in, pinch manufacture group getting much worried astir nan future. The GBTA study showed manufacture assurance falling sharply, pinch world assurance down to 28% successful July from 31% successful April. This contrasts sharply pinch optimism successful November 2024 – it was 67%. The Asia Pacific had nan largest simplification successful confidence, dropping from 40% successful April to 27% successful July. Optimism among firm recreation managers was unchanged astatine 29%, while suppliers and TMCs were peculiarly much pessimistic, pinch levels of optimism dropping from 36% successful nan year.

Growing Safety, Budget and Employee Willingness to Travel Concerns

Worries astir nan information of business travelers are mounting. Almost half (46%) of respondents listed information and work of attraction arsenic their number 1 issue, compared to 37% successful April. Other concerns mentioned are separator detentions (31%) and fund cuts (44%), which person some risen sharply since nan past survey. Moreover, labor are little consenting to recreation to nan U.S., much than 1 3rd (41%) consciousness that their labor are little apt to recreation since nan U.S. authorities has taken actions. These worries underscore a increasing unwillingness among firm travelers to return nan chance of getting stranded successful nan look of progressively restricted introduction and recreation restrictions.

Canceled, Relocated, and Virtual Meetings Increasing

One of nan astir important patterns successful business recreation is nan summation of changes successful meetings: cancelations, relocations, and virtual substitution. 18% of recreation buyers astir nan world said they person canceled meetings successful nan U.S., up from of 13% successful April, and different 17% person canceled events successful nan U.S., up from 10% past month. Thirteen percent of buyers person moved meetings, and 12% person moved events retired of nan U.S., up from 8% and 6% respectively. In addition, one-quarter of each meetings aliases events are being moved to virtual compared to 19% successful April, which indicates a decisive move towards integer replacements successful consequence to an uncertain future.

Striking New Trade Deals Beyond nan U.S.

Non-U.S. companies are responding to changing world dynamics, arsenic a 3rd of them salopes G. based manufacture professionals (35%) shared their companies were already readying to recreation and link pinch imaginable waste and acquisition partners extracurricular of nan United States Europe and Asia Pacific region emerged arsenic nan apical regions for imaginable caller business opportunities pinch 70% of respondents viewing Europe arsenic nan astir promising region while 53% said nan aforesaid of APAC for world business engagement.

Personal Repercussions of U.S. Government Decisions

While U.S. authorities actions are being felt personally successful different cases, that is besides progressively existent successful nan lawsuit of COVID-19. Employees person already turned down U.S.-based business trips owed to caller U.S. argumentation changes, 18% of recreation buyers said successful nan survey. That’s besides up from 23% successful April, and 35% besides said that they person a friend aliases family personnel who has had to change recreation plans straight because of these argumentation changes.

Navigating nan New Business Travel Terrain

The business recreation assemblage is heading into nan 2nd half of 2025 pinch immoderate important headwinds to navigate successful position of revenue, measurement and security. The U.S. government’s actions person continued to mold nan world business recreation landscape, starring to reappraisals by organizations of their recreation strategies and information of caller markets. In this era of progressively virtual events and a crisp move distant from U.S.-based meetings, nan world business recreation manufacture is adjusting to a caller normal that will apt beryllium moreover much move and unforeseeable than nan erstwhile one.