Business travel was making a gradual recovery post-pandemic, but the ongoing U.S. trade war has created new uncertainties. Suzanne Neufang, CEO of the Global Business Travel Association (GBTA), projected that global spending could reach $1.64 trillion by 2025, surpassing pre-COVID levels. However, an alarming 29% of corporate travel managers both domestically and internationally anticipate a decline in business travel this year due to government policies, potentially shrinking travel by up to 22%.
Despite these concerns, current data suggests that bookings have not plummeted dramatically. Jonathan Kletzel from PwC remarked that while travel is constrained, companies—especially in sales—still view it as essential. Airline executives, like Delta’s CEO Ed Bastian, noted a slowdown in travel demand that influenced financial expectations. Airlines and hotel chains, including Marriott and Hilton, have lowered forecasts in light of dampened government travel demand and shifts in corporate attitudes.
Government agencies, particularly those reliant on funding from the U.S. Agency for International Development, have faced significant cutbacks, with some travel agencies reporting a sales drop of 20% in Q1 2025. As companies adapt to new financial pressures from tariffs and workforce reductions, many are reconsidering travel budgets.
However, Navan reported a rise in bookings in early 2025, although concerns linger. The anxiety among travelers is reflected in a 223% surge in searches for travel insurance that allows cancellation for work reasons. While the overall outlook remains mixed and subject to change, some experts believe leisure travel may be affected more than business travel in the near term. The sentiment suggests a cautious approach as businesses evaluate their travel strategies amid evolving economic conditions.
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