The global air travel sector is set to fully recover this year despite global economic barriers like inflation and geopolitical tensions. Nearly 5 billion passengers are expected to fly by the end of 2024, a 10.4% increase from 4.45 billion passengers and 9% higher than pre-pandemic levels in 2019.
In the Asia-Pacific region, substantial growth is anticipated for the rest of 2024. This is due, in part, to a slow 2023 rebound followed by delayed demand this year. China’s GDP exceeded expectations in the first quarter of 2024, growing by 5.3% year-over-year. Despite property sector challenges, new government support measures are expected to stabilize the economy and boost air travel demand, according to IATA’s Quarterly Air Transport Chartbook.
The number of air passengers in China grew significantly in Q1 2024. Domestic traffic is now 17% above 2019 levels, while international air travel is still recovering. Most international air traffic from China was within Asia, accounting for three-quarters of this traffic, and is still one-third below pre-pandemic levels, IATA said.
![Greg O'Neil, BCD Travel](https://www.bcdtravel.com/wp-content/uploads/BCD_Greg_ONeil_180x180.jpg)
Simpler visa procedures and visa-free policies in China
China’s simplified visa procedures and visa-free policies have boosted inbound travel from targeted regions, including beyond Asia. The number of foreign travelers to China tripled, with nearly two million benefiting from the visa exemption policy.
Air passenger traffic from the rest of the Asia-Pacific region also grew significantly in the first quarter. Advanced economies in the region, such as Japan, South Korea, and Singapore, all saw significant growth. Hong Kong recorded 112% growth year over year but remains more than 15% below the 2019 level, IATA said.
India, on the other hand, remains the fastest-growing major economy, with an anticipated GDP growth of 6.2% and a 20% surge year over year in the first quarter of 2024, aided by the expansion and upgrades of airport facilities across the country.
Sustainability will impact corporate travel the most in years ahead
The recovery of travel demand is taking place against an evolving backdrop of corporate travel program priorities. While savings, duty of care and satisfaction continue to top the priority list, our recent BCD survey revealed almost two-thirds of travel buyers expect sustainability to have the strongest impact on corporate travel policies in the coming years. With the Corporate Sustainability Reporting Directive (CSRD) set to impact more companies than any other sustainability regulation to date, expectations are higher than ever for robust reporting on business travel emissions and strategies to reduce them.
The aviation industry, with its reliance on jet fuel, faces significant challenges in reducing its carbon footprint. European Commission projections suggest that aviation could account for as much as 22% of global emissions by 2050, a stark increase from the current 2-3%. According to UK-based climate activists and charity Possible, only 20% of the world’s population has ever flown. But, the rapid growth in emerging markets like India and Southeast Asia will further increase demand for air travel.
While business travel’s exact contribution to aviation’s carbon footprint is unclear, Possible research found that 1% of air travelers generate 50% of emissions. In Europe, business travelers account for 12% of transport customers but produce 30% of emissions, according to Transport Environment, a European advocate for clean transport & energy. Sustainable Aviation Fuel (SAF) is an important element in decarbonization efforts, with emissions reductions of up to 80% compared to traditional jet fuel. However, SAF currently represents only 0.5% of aviation fuel, based on IATA findings. Significant investments – up to $1.45 trillion – are needed to scale up production to meet future demand, according to Sustainable Views, a service of the Financial Times Group.
Several countries, including those in the EU, the UK, and Singapore, have mandated specific SAF usage by target dates. Airlines have made it clear that the costs associated with these mandates will be passed on to customers, and in the case of Singapore, the government is proposing a levy.
A sustainable future for travel: Blending responsibility with innovation
Corporates can play a part in generating demand for SAF, which will help to provide market signals and unlock investment. We – corporate buyers and travelers, airlines, hotels, travel management companies and all the other players in our industry – must act together to drive down the carbon emissions generated by business travel. There are no easy solutions. But that doesn’t excuse anyone in our industry from the responsibility of working to enact the solutions that are available to us.
Our goal, as a travel management company (TMC), is to collaborate with clients to ensure every trip justifies its emissions, highlighting the positive impact of business travel on sustainability. With a focus on policy compliance, data collection, and reporting, managed travel is uniquely equipped to promote a sustainable future. BCD is in a unique position to help our customers manage their travel more effectively and sustainably.
For us, this falls into four categories:
- Providing clients with data and analysis to understand travel impact.
- Equipping clients with tools to reduce that impact.
- Empowering travelers to make sustainable decisions.
- Supporting clients in mitigating travel emissions through carbon credits or SAF purchases.
As an industry, we must blend responsibility with innovation to shape the future of corporate travel. In the words of BCD’s founder, John Fentener van Vlissingen, we must build for the “next, next generation.”
BCD’s 2024 Sustainability Report
Accountability for a more sustainable future runs across all functions at BCD. Our 2024 report addresses the actions we’ve taken over the past year to deepen our impact for a more sustainable world. Check the report for insights into how we’re maintaining focus on sustainability for our organization, clients and the business travel industry.
![Blog_Sustainability-Achievements_July2024](https://www.bcdtravel.com/wp-content/uploads/Blog_Sustainability-Achievements_July2024.jpg)
2024 Sustainability Report
An overview of our activities, achievements and progress covering the calendar year of 2023.
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