Business travel was anticipated to recover in 2025, with projected global spending rising to $1.64 trillion, from $1.48 trillion in 2024. However, growing uncertainty due to U.S. trade policies has created significant pessimism in the sector. According to a survey by the Global Business Travel Association (GBTA), around 29% of corporate travel managers—both domestically and internationally—expect business travel to decline due to government actions, which could reduce trips by as much as 22%.
Despite these concerns, bookings have not collapsed. Experts suggest that while demand is cooler, many companies still recognize the importance of in-person interactions to stay competitive. Delta Air Lines’ CEO noted a slowdown in travel demand, previously growing by 10%, as companies reconsider their travel policies. Other airlines, like Marriott and Hilton, have revised their financial forecasts due to a dip in U.S. government travel demand.
Government cuts initiated by the Trump administration have notably impacted travel for contractors, with some reporting a 20% decline in sales. Travel agencies catering to government clients indicated significant reductions in expected travel due to funding cuts.
Travel management services have reported mixed results; bookings increased early in the year but showed signs of slowing. In contrast, travelers appear increasingly anxious, evidenced by a surge in searches for travel insurance covering cancellations for work-related reasons.
While leisure travel may suffer more than business travel, experts urge a cautious approach in forecasting the remainder of the year, suggesting businesses will take longer to feel economic pressure compared to vacationers. Overall, the outlook suggests a challenging year ahead for all travel sectors in the U.S. market in 2025.
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