Las Vegas Gaming Companies May Benefit from Business Travel Recovery

Three and a half years ago, the global COVID-19 pandemic impacted nearly all industries across the globe. The entertainment, hospitality and gambling sectors weren’t spared, and tribal and commercial casinos across the US endured temporary restrictions, including closures. Despite the huge impact of the pandemic on the gaming and hospitality sector, visitation is gradually returning to normal in gaming and entertainment hubs such as Las Vegas.

With the increase in traveling and removal of restrictions over the last two years, Las Vegas has started its recovery as companies seek to surpass financial figures recorded before the pandemic. Judging by a recent report, the global business travel industry is on the right track. Considering an increase in business travel is observed, it is safe to say that Las Vegas operators may also be able to start seeing benefits soon.

The recent report, published by the Global Business Travel Association (GBTA) in partnership with Visa, was titled “2023 GBTA Business Travel Index Outlook – Annual Global Report and Forecast,” and reveals important trends and predictions regarding the global business travel industry. Undoubtedly, this report is relevant for entertainment and gambling operators in Las Vegas, and on the Strip in particular, that offer business amenities such as convention and exhibition spaces.

Rebound of Business Travel Is Faster than Expected

According to the recent report, the global business travel industry has rebounded faster than anticipated. “The global business travel industry has rebounded at a more accelerated rate than expected just a year ago and is now expected to surpass its pre-pandemic spending level of $1.4 trillion in 2024 − and grow to nearly $1.8 trillion by 2027,” explains the new report.

Last year, global business travel spending increased to $1.03 trillion, up by 47%. The positive trend materialized this year as well, with growth expected to reach some 32%. Per the recent report, the positive results come amid an increase in demand after the pandemic and “more favorable global economic conditions in 2022 and 2023 and recession risks that have yet to happen.”

GBTA’s report revealed that business travel recovery recorded different values depending on the region. While Western Europe saw the biggest uptick in 2022, Latin America and North America have been growing their spending significantly too.

“The headwinds that were anticipated to impact the rebound of global business travel over the past year didn’t materialize and that is good news.“

Suzanne Neufang, CEO at GBTA

Suzanne Neufang, GBTA’s CEO, revealed that the challenges that were expected to impact global business travel didn’t happen, which was a good sign. She added the report points to an accelerated return to business travel spending to pre-pandemic levels. Moreover, Neufang predicted further growth for the business travel industry in the next few years.