Business Travel Market

The global Business Travel Market was valued at USD 742.9 Billion in 2022 and is projected to reach a value of USD 1964.1 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 14.9% between 2023 and 2030.

Premium Insights

The global Business Travel market has experienced robust expansion due to the rise in travel & tourism and the rapid expansion of businesses worldwide. Regional government investments in infrastructure improvement and the accelerated growth of the Business Travel Market are also propelling the market growth. Business Travel is defined as travel for business or professional purposes, as opposed to various types of pleasure or leisure travel, such as daily commutes, vacations, or vacations. One of the primary reasons why Business Travel is essential is the individual interaction that strengthens existing and future relationships.

Typically, these are performed to meet with customers, visit another company, attend a worksite, form new partnerships, establish ties between businesses, or enhance a product. Modern hotels have conference rooms and meeting rooms so that meetings can be held there. This can also reduce misunderstandings and promote a sense of unity. The greatest advantage of Business Travel for employees is the opportunity to see parts of the globe at the companys expense. In addition, it is common for physicians, nurses, and other medical professionals to fly for their profession. Attorneys frequently use Polibook to research over a million properties from numerous sources. The global Business Travel market is primarily propelled by a rise in travel & tourism and the rapid expansion of businesses worldwide. Emerging countries are becoming the fastest-growing Business Travel market, including domestic and international travel by employees and organizations. Expenditures on Business Travel have accelerated over the past few years. Businessmen are attracted to hotels that provide complimentary services, such as free Wi-Fi, electronic devices for teleconferencing and video conferencing, and discussion rooms for conducting business.

In addition, the development of business globalization and the sustained expansion of SMBs contribute to the expansion of the market. In addition, an improvement in regional government infrastructure investments and accelerated development in the Business Travel market are anticipated to fuel the growth of the global market over the forecast period. The influx of younger individuals into the Business Travel market combines leisure and Business Travel. This group optimizes its Business Travel by taking advantage of additional vacation time.

Economic Insights

As tensions rise between Russia and Ukraine, companies worldwide start to plan for the aftermath of the conflict. As the world strives to reach a GDP of $100 trillion by 2022, a Russian invasion would have catastrophic effects on the economy and threaten progress and prosperity. It will not be easy to accomplish the GDP target despite the parties' best efforts because the economic trend is projected to reverse.

Top Market Trends

1. Rising Number of Online Travelers: According to estimates, the market share of online travel bookings will increase by 10% annually. Internet penetration is approximately 90 percent in developed nations such as North America, Europe, and other developed nations, along with these Asian nations, India. China and South-East Asian nations spend significantly on travel and tourism, with internet penetration exceeding 50 percent and rising rapidly. Mobile travel ticketing is also growing in sales annually and offers opportunities for new and established market participants. According to the research, mobile travel booking is frequently associated with consumer behavior involving last-minute, same-day, and next-day bookings, paving the way for personalized Business Travel booking services.
2. Rising Number of Business and Leisure Travellers: 50-60% of Business Travelers dine in restaurants, visit the shore and adventurous places, shop, visit theme parks, spas, theme parks, concerts and entertainment, and frequent bars and clubs. In 2017, 40% of business trips were extended for leisure, and approximately 41% of Business Travelers appreciate exploring new cultures and locations. Los Angeles, Chicago, New York City, Tel Aviv, London, Singapore, Paris, Tokyo, and Shanghai are popular leisure destinations.

Market Segmentation

The global Business Travel market can be categorized into the following: Service, Industry, Traveller, and Region. Based on Service, the market can be categorized into Transportation, Food & Lodging, and Recreation. Additionally, based on Industry, the market can be split between Government and Corporate. Moreover, based on Traveller, the market can be split into Group and Solo. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Service

Transportation to Account for the Largest Market due to Rising Number of Business Travellers

Among the numerous sectors, the transportation sector is the most utilized. Transportation is an essential aspect of the travel experience for Business Travelers who are continually moving. Whether by plane, train, or rental automobile, transportation is essential for connecting travelers with their destinations. The convenience, swiftness, and effectiveness of transportation make it the preferred mode of travel for most Business Travelers. Food and accommodation is the second-largest global Business Travel market segment. Business Travelers frequently require high-quality, comfortable, and convenient lodging and dining options. This segment contains a variety of hotels, serviced apartments, and resorts, as well as restaurants and cafes for dining. Business Travelers require quality lodging and dining options to ensure a comfortable and productive trip. This segment is extremely important to the industry, and companies continue to invest heavily in this sector to enhance their offerings.

Based on Industry

Corporate Travellers to Accommodate Dominion Due to Rising Number of International Travellers

The corporate segment is the most extensively utilized of these two groups. Businesses frequently require their employees to travel for various reasons because the corporate sector is a major contributor to the global economy. These purposes may include conferences, client meetings, and business transactions. Corporate travel is essential for maintaining relationships, generating revenue, and growing a business. Consequently, corporations invest significantly in Business Travel, making it the most utilized global Business Travel market segment. Government represents the second-largest segment of the global corporate travel market. Travel by government officials and employees, such as diplomats, civil servants, and military personnel, is referred to as government travel. Government travel is essential for fostering international relations and preserving diplomatic ties between nations. Consequently, it is a crucial component of foreign policy and national security. While the government segment of the Business Travel market is smaller than the corporate segment, it remains a significant contributor.

Based on Region

Asia Pacific to Delivery Maximum Products owing to Expanding Product Line for Deliveries

North America is anticipated to dominate the global Business Travel market during the projected period. The United States is considered the best destination for business trips and excursions due to its high opportunities and well-equipped facilities. San Francisco and New York are among the top five destinations in the world and are considered corporate giants. The cost of Business Travel in the United States is 109.4 billion dollars. In 2022 and 2023, approximately 33,000 conferences, business meetings, and trade fairs are scheduled in the United States.

The Asia Pacific region is anticipated to experience robust market growth over the forecast period. Countries such as South Korea, Japan, India, Singapore, and China are investing heavily in their ability to attract Business Travelers. The expanding business and trade opportunities with these nations further expand the Business Travel market. China is anticipated to maintain its position as Asias greatest business exhibition center.

Competitive Landscape

In todays globalized economy, Business Travel has become essential to the operations of many businesses. Consequently, the Business Travel market has become increasingly competitive, with numerous players vying for market share. These businesses offer various services, such as travel, expense, and risk management, and compete based on pricing, service quality, and technological innovation. In recent years, the rise of online travel agencies and the increasing use of mobile technology have disrupted the traditional Business Travel market, creating new entry points for innovative companies. Companies that can adapt to changing customer needs and leverage new technologies will be best positioned to flourish in this extremely competitive industry as the market evolves.

The key players in the global Business Travel market include - Airbnb Inc. (U.S.) among others.

Recent Market Developments

• April 2022: Corporate Travel Management (CTM) announced the acquisition of Helloworld Corporate, establishing itself as the largest provider of corporate travel programs to Australias government and university sectors and more than a quarter of the ASX200. Immediate priorities for CTM will include welcoming customers and employees, establishing customer engagement plans, and optimizing travel policies by leveraging CTMs scope, service, and technology.
• June 2022: OpenTable and Inline have formed a strategic alliance. Open Table is a prominent online restaurant reservation service and a subsidiary of Booking Holdings Inc and inline group Ltd (inline), a leading provider of online applications

Segmentation of the Global Business Travel Market