Corporate Travel Budgets Set to Rise 5% as "In-Person Meetings" Rebound

The Morgan Stanley AlphaWise survey of corporate travel managers released today confirms that global business travel budgets are projected to rise by 5% in 2026.

This optimistic outlook marks a "final pivot" away from the virtual-first mindset, with only 8% of travel volume now expected to shift permanently to digital platforms. European companies are leading this expansion, fueled by a steady improvement in corporate confidence and a renewed belief that in-person collaboration is essential for business development and cultural cohesion.

For the hospitality and aviation sectors, this rebound is a "major financial win," as business travel traditionally accounts for up to 70% of hotel demand. Travel managers are forecasting a 6.3% increase in hotel booking volumes and a 10% growth in corporate room revenue for the year.

Additionally, 74% of companies now report that their First and Business Class travel policies have remained stable or become more liberal, reflecting a "commitment to traveler well-being" and productivity during long-haul transits. The "sentiment on business travel" has reached its highest level since 2019, with 45% of managers describing themselves as "very optimistic."

This budgetary growth is also driving technological innovation within the corporate travel ecosystem. Companies are increasingly investing in AI-powered booking channels and profitability analytics to manage the "rising cost of airfares," which are expected to jump between 6% and 10% this year.

The focus is on value-based travel, where every trip must demonstrate a clear Return on Investment (ROI). As corporate volumes return to full capacity, the 2026 business traveler can expect more personalized service and a "high-touch" airport and hotel experience.