Global Business Travel Group (GBTG) Citi's 2024 Global TMT Conference summary

Market environment and performance

• Achieved 4% transaction growth, 5% TTV growth, and 6% revenue growth in 2Q, despite macro headwinds and the Olympics impact.

• Revenue growth is at the lower end of the 6%-9% guidance, with adjusted EBITDA expected at the midpoint of 18%-32% guidance.

• Business travel is growing at or slightly above GDP, with share gains contributing to performance.

• Balanced exposure: 50% SME, 50% global multinational, with segment performance shifting year over year.

• SME growth has slowed due to higher interest rates and inflation, while global multinationals remain robust, especially in tech, pharma, healthcare, and financial services.

Segment and geographic trends

• SMEs face economic pressure from elevated interest rates and 24% higher airfares versus two years ago.

• Global multinationals show broad-based growth, with tech up 9% and double-digit gains in several sectors.

• APAC is the fastest-growing region at 17% in Q2, expected to outpace other regions for the next 3-5 years.

• Both SME and multinational customer surveys indicate positive spend sentiment for the second half of the year and into 2025.

Product, technology, and innovation

• Expanded SME product set, including Neo1 spend management and Egencia SaaS platform, to address $900B SME opportunity, $600B of which is unmanaged.

• Neo1 enables virtual card issuance and broader expense management, increasing relevance for unmanaged SMEs.

• Integration with Amex enhances payment solutions, especially for mid-sized businesses with diverse needs.

• AI and machine learning investments focus on cost efficiency, productivity, and customer experience, with applications in servicing, finance, and product engineering.

• Blockchain-based Avelia platform aggregates demand for sustainable aviation fuel, enabling customers to track and claim sustainability credits.