Global business travel spending forecasted to reach $1.5 trillion this year

This revival offers key opportunities for Canada's hotel sector, particularly in urban centres such as Toronto, Montreal, and Calgary, where corporate travel traditionally formed a substantial portion of hotel revenues, according to Business Mirror. The strong rebound in these cities is expected to drive demand for short- and long-term stays, as well as conference services, as hotels recalibrate their strategies to meet the needs of returning business travellers.

Before the pandemic, business travel accounted for a considerable portion of hotel revenues in these urban hubs, given their roles as economic and corporate centres. Hotel operators in these areas are expected to benefit significantly from the resurgence of the meetings, incentives, conferences, and exhibitions (MICE) sector, which is seeing strong demand for in-person events after years of virtual alternatives, according to Focus on Travel News. Toronto, in particular, is projected to experience an increase in revenue per available room (RevPAR), driven by the combined impact of corporate travellers and growing MICE activity, as reported by Travel Daily News.

A major driver of this recovery is reportedly the resurgence of U.S. and Chinese business travel. These two countries, which represent Canada’s largest trade partners, are forecast to exceed their pre-pandemic corporate travel spending. U.S. business travel is projected to reach $472 billion, a 13.4 per cent increase over 2019, while China’s business travel market is expected to hit $211 billion, up 13.1 per cent, according to the WTTC report. This recovery will benefit Canadian hotels, particularly in cities with established connections to these international markets, like Vancouver and Toronto, as cross-border corporate travel resumes.

Another emerging trend impacting Canadian hotels is the rise of "blended travel," where business travellers combine work with leisure. This trend has allowed many hotels to extend their average length of stay and increase occupancy during what would traditionally be business-only trips, according to Travel Daily News. Hoteliers are now catering to this trend by offering flexible workspaces and services tailored to travellers who want both professional and leisure experiences during their stays.

MICE events are also making a strong comeback in Canada, particularly in Vancouver, Ottawa, and Toronto, which have robust infrastructures to host large-scale conferences and corporate events. Many postponed in-person events are now being rescheduled, further bolstering hotel demand. The WTTC report underscores that the return of in-person conferences is a critical element in the hospitality sector’s recovery, particularly in Canada, where MICE has traditionally been a major revenue driver for hotels.

The WTTC concludes that the hotel industry’s ability to cater to the evolving preferences of business travellers—particularly with flexible and hybrid working solutions—will be key to capturing market share as corporate travel continues its robust recovery. Hotels that invest in digital services, high-quality meeting facilities, and wellness amenities are likely to see the most significant benefits, according to Business Mirror.