April 23, 2024

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Business Travel Market to Grow at CAGR of 10.82% through 2032

8 min read
The Brainy Insights

The Brainy Insights

The global business travel market is anticipated to grow from USD 901.53 billion to USD 2,518.61 billion in 10 years. The continual evolution of the travel and tourism industry, coupled with integrating key segments like hospitality and infrastructure through government initiatives, is propelling the expansion of the global travel and tourism sector. This aspect, in turn, is bolstering the growth of the business travel market. The increasing prevalence of digitization is a significant catalyst affecting both corporate and tourism aspects of the global business travel market. Furthermore, the growing adoption of the IoT streamlines processes for travel operators and travellers, contributing to efficient and convenient experiences. These factors are prominent drivers expected to fuel the business travel market’s growth throughout the forecast period.

Newark, Jan. 04, 2024 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 901.53 billion in 2022 global business travel market will reach USD 2,518.61 billion by 2032. The importance of employee well-being is gaining prominence. Businesses can capitalize on opportunities by integrating health and wellness programs into business travel services. This factor includes partnerships with fitness facilities, healthy dining options, and services prioritizing travellers’ physical and mental well-being. Furthermore, personalization is a key trend in the travel industry. Opportunities exist for businesses that provide tailored travel experiences, considering the preferences and needs of individual travellers or specific corporate clients. This aspect can encompass personalized itineraries, exclusive services, and niche travel offerings. The demand for virtual and hybrid meetings is also on the rise. Companies offering innovative meeting and event technology solutions, including virtual platforms, event management software, and interactive tools, can capitalize on the evolving landscape of professional engagements. Additionally, with the increasing adoption of flexible work arrangements, there is an opportunity to create travel packages that combine work and leisure. Companies can offer extended stay options, co-working spaces, and curated experiences that cater to professionals looking to balance work and travel. Besides, collaborating with innovative travel startups can open new opportunities for established businesses. Whether partnering with companies offering unique travel experiences or integrating cutting-edge technologies, such collaborations can bring fresh perspectives and services to the business travel market.

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Key Insight of the global Business Travel market

Asia Pacific is expected to witness the highest market growth over the forecast period.

The growing middle-class population in many Asia Pacific countries has increased consumer spending and business activities. This demographic shift contributes to a higher demand for business travel services as companies expand to cater to the rising consumer base. The Asia Pacific region has also embraced technological advancements, improving connectivity and communication. While virtual communication tools are prevalent, the cultural importance of face-to-face interactions continues to drive the demand for business travel. Furthermore, many governments in the Asia Pacific region are actively promoting tourism and business-friendly policies. Infrastructure development, including the construction of business hubs, conference centres, and modern transportation facilities, enhances the region’s appeal to business travellers. Additionally, Asia Pacific hosts many business events, conferences, and trade shows across various industries. This trend attracts professionals worldwide, contributing to the region’s overall business travel growth. The Asia Pacific region is becoming pivotal in shifting the global economic centre of gravity from West to East. As a result, businesses are increasingly focusing on the Asia Pacific for growth opportunities, contributing to the surge in business travel.

In 2022, the food & lodging segment held the largest market share at 56.29% and a market revenue of 507.47 billion.

The service segment is divided into business activity, food & lodging and transportation. In 2022, the food & lodging segment held the largest market share at 56.29% and a market revenue of 507.47 billion.

In 2022, the corporate segment dominated the market with the largest share of 66.72% and revenue of 601.50 billion.

The industry segment includes corporate and government. In 2022, the corporate segment dominated the market with the largest share of 66.72% and revenue of 601.50 billion.

In 2022, the group segment dominated the market with the largest share of 60.14% and revenue of 542.18 billion.

The traveller segment is classified into group and solo. In 2022, the group segment dominated the market with the largest share of 60.14% and revenue of 542.18 billion.

Advancement in market

In February 2023: Demonstrating its commitment to innovation in corporate travel management, Direct Travel, Inc. has advanced its digital transformation initiative by launching a multi-lingual version of its virtual assistant, Simon. This AI-driven virtual assistant is now accessible in English and French, offering automated assistance across various channels, including Direct Travel’s Direct2U mobile app. Simon is an AI-based virtual assistant addressing travel-related inquiries, retrieving information such as past invoices, facilitating profile updates, and connecting users with reservation and product support team members.

In August 2022: BCD Travel, a prominent travel management company, has unveiled its collaboration with FairFly to integrate the latter’s cutting-edge technology and artificial intelligence into its Air Price Assurance (APA) solution. Leveraging FairFly’s expansive global automated Global Distribution System (GDS) coverage, BCD aims to extend the reach of its APA solution to its entire customer base. This technology empowers BCD to optimize automated savings on air expenditures for its clients. The BCD Air Price Assurance, powered by FairFly, utilizes predictive capabilities to anticipate fare changes, automatically cancelling and rebooking tickets at reduced rates. This innovative solution saves time and generates savings of up to 4.8% of overall air spend, all while ensuring zero disruption to the traveller.

Market Dynamics

Driver: Networking and relationship building.

Face-to-face interactions allow individuals to establish trust and rapport more effectively than virtual communication. Non-verbal cues, body language, and facial expressions contribute to a deeper understanding of the person, fostering a sense of connection that is often challenging to achieve through digital means. Furthermore, face-to-face interactions provide a unique platform for networking. Events, conferences, and business gatherings offer professionals the opportunity to meet and connect with diverse individuals. Networking can lead to discovering new partnerships, collaborations, and business opportunities that might not have been evident online. Additionally, in-person meetings facilitate clear and direct communication. Nuances in tone, emphasis, and immediate feedback enhance the effectiveness of conversations. This aspect is particularly important in negotiations, where subtleties and context play a significant role.

Restraint: Time constraints.

Professionals often grapple with tight schedules packed with meetings, deadlines, and project deliverables. The limited availability of time becomes a substantial obstacle to undertaking extensive travel. Business trips require dedicated time for planning, commuting, and on-site engagements, which can strain an already time-constrained workweek. In addition, the contemporary emphasis on achieving a healthy work-life balance has intensified, and professionals are increasingly aware of the need to allocate time for personal commitments, family, and well-being. Frequent business travel can disrupt this delicate equilibrium, leading to concerns about the impact on personal life and overall job satisfaction. Furthermore, in an era of globalized businesses, professionals may be part of geographically dispersed teams or collaborate with colleagues and clients across different time zones. The challenges of coordinating schedules and aligning work activities across borders further complicate the feasibility of extensive business travel.

Opportunity: Diverse accommodation options.

The evolving trend towards diverse accommodation options, such as serviced apartments and boutique hotels, represents a significant opportunity for business travel services to cater to a vast range of choices and requirements among travellers. This shift reflects a growing recognition that professionals have varied expectations regarding lodging during business trips, and businesses in the travel sector are responding by expanding their offerings. By identifying the need for extended stays, business travel services can tailor their offerings to provide solutions for professionals requiring accommodations for more extended periods. This factor includes negotiating favourable rates for long-term stays in serviced apartments. Moreover, establishing partnerships with serviced apartment providers and boutique hotels enables business travel services to expand their network and offer a curated selection of accommodations. This strategic collaboration enhances the overall travel experience for their clients.

Challenge: Uncertain economic conditions.

During economic downturns, companies typically tighten their belts and scrutinize expenditures. Corporate budgets for travel are among the first areas to be scaled back. Business travel service providers must work on catering to clients with reduced travel budgets, requiring them to find cost-effective alternatives. Corporations become more assertive in negotiating travel contracts and seeking favourable terms during economic downturns. Business travel service providers face increased pressure to offer competitive pricing, added value, and flexible arrangements to retain and attract clients. In addition, economic uncertainties often result in reduced demand for business travel as companies reassess the necessity of trips and prioritize cost savings. This decline in demand directly impacts the revenue streams of travel service providers, prompting them to find innovative solutions to maintain profitability.

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Some of the major players operating in the global Business Travel market are:

• ADEKA Corporation
• Airbnb, Inc.
• American Express Company
• BCD Group
• Booking Holdings
• Carlson Holdings, Inc.
• CWT Solutions
• Corporate Travel Management
• Citi Group
• Chase
• Direct Travel, Inc.
• Egencia LLC
• Expedia, Inc.
• Frosch International Travel
• Fareportal
• Flight Centre Travel Group Limited
• Hogg Robinson Ltd.
• Navan, Inc.
• Ovation Travel Group
• Priceline
• Travel Leaders Group
• TravelPerk S.L.U
• Wexas Travel

Key Segments cover in the market:

By Service

• Business Activity
• Food & Lodging
• Transportation

By Industry

• Corporate
• Government

By Traveller

• Group
• Solo

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

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About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter’s five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients’ objectives of high-quality output within a short span of time. We provide both customized (clients’ specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients’ requirement whether they are looking to expand or planning to launch a new product in the global market.

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