The global business travel landscape is facing unprecedented challenges, as optimism in the sector has plummeted significantly since last year. According to a recent report by the Global Business Travel Association (GBTA), positive sentiment among business travel professionals has dropped from 67% in November 2024 to merely 31% by April 2025. This decline reflects a growing cultural atmosphere of uncertainty among key industry stakeholders, amplified by tariffs, strict border policies, and a range of evolving governmental decisions in the United States that have created turbulence in international travel dynamics.
The survey, which encompassed over 900 business travel professionals across the United States, Canada, and Europe, highlighted that more than a quarter of respondents expressed feelings of pessimism or strong pessimism regarding the industry’s outlook for the remainder of the year. Furthermore, about 40% indicated they felt neither positively nor negatively about the current state of business travel. This ambivalence underscores the prevailing climate of doubt, which has prompted some industry leaders to reconsider their strategies.
Suzanne Neufang, the CEO of GBTA, echoed these sentiments in a recent interview with CNBC Travel, remarking, “Since I have been in my role for four years, I haven’t seen this high of a level of uncertainty.” The report revealed that nearly 30% of business travel buyers anticipate cutbacks on employee travel, while an additional 20% were uncertain about future travel plans, indicating a substantial lack of confidence within organizations.
Financial considerations have also contributed to this uncertainty, with 27% of respondents expecting decreased spending on business travel. The implications of this contraction could be significant, especially in a sector that traditionally generates substantial revenue for airlines, hotels, and various service providers.
Compounding these challenges, roughly a third of surveyed business travel buyers indicated that their companies have either revised or are contemplating alterations to their travel policies in light of recent U.S. government measures. Alarmingly, about 6% reported having relocated corporate events from the United States to other nations, a decision that could reverberate through the travel and hospitality sectors, impacting local economies that rely on business travel.
Neufang further noted that regions outside the U.S. might see opportunities arising from these shifts. “From an APAC perspective, and certainly from a European perspective, maybe even LATAM, there’s the opportunity to be the source of where these meetings take place,” she remarked, suggesting that global power dynamics in the corporate travel space could realign significantly.
Concerns regarding the fallout from the Trump Administration’s recent policies were prevalent among participants. A striking 54% of business travel professionals indicated worries about rising costs associated with business travel, while 46% pointed to difficulties in visa processing as a major obstacle. These issues could inhibit the recovery of the travel sector, limiting access to key markets and frustrating potential international business engagements.
Despite these headwinds, there are signs of resilience within the global business travel market. According to FCM Consulting, international airfares have decreased slightly, by about $17 or 2.2% year-to-date. This marginal dip may provide some relief to both corporate travelers and businesses in the short term, suggesting not all is bleak. The GBTA anticipates that the global business travel market could still surpass $1.6 trillion by the end of 2025, contingent upon whether recent negative trends can be mitigated.
However, Neufang stressed the importance of maintaining perspective. She indicated that business travel volumes haven’t fully returned to pre-pandemic levels but noted that corporate spending on travel bounced back in 2024, partly fueled by inflationary pressures. While some institutions might be wary of increasing travel expenses amid economic volatility, the potential for heightened business engagements during periods of trade disputes remains a possibility.
“During times of trade wars, business travel may actually increase for at least a period of time,” she said. “You lose a customer, you need to find another one. So I think that perspective doesn’t mean all doom and gloom for us.” This viewpoint suggests that while the business travel landscape is fraught with challenges, there are also opportunities for expansion, especially in emergent markets where companies can forge new partnerships.
Nevertheless, the overarching concern remains that if tariffs persist or escalate, U.S. travel could suffer significant setbacks. Neufang cautioned that while other regions may stabilize, U.S. business travel could face detrimental impacts that could ripple across international borders.
In addition to business journeys, leisure travel to the United States has also seen a downturn in 2025. Projections suggest international visitor spending will decline by approximately 4.7% compared to 2024, equating to a potential loss of around $8.5 billion for the U.S. travel industry. This further compounds the challenges facing the sector, as operators contend with shifting demand dynamics while trying to revive pre-pandemic revenue levels.
As businesses navigate this turbulent terrain, industry leaders will need to remain agile in adapting to ongoing external influences. With shifting government policies, economic uncertainties, and changing traveler behaviors intertwining, the global business travel industry stands at a crossroads. The decisions made in the coming months will not only shape the immediate future of the sector, but also establish a longer-term framework that may redefine business travel’s role in the global economy for years to come. Industry stakeholders will need to remain vigilant and proactive, responding thoughtfully to emerging trends while cultivating resilience in the face of adversity.