Source: Global business travel sector set to surpass $2.1 trillion by 2031 with a steady 9.5% growth rate, Travel And Tour World, March 22, 2024
In 2021, the value of the global market for business travel was estimated at $689.7 billion, with projections suggesting it could escalate to approximately $2.1 trillion by 2031. This represents a steady growth rate of 9.5% annually from 2022 through 2031.
Business travel, also known as corporate tourism, involves travel for a variety of professional purposes including attending meetings, negotiating deals, networking, participating in trade shows, and visiting exhibitions. Such travel is primarily undertaken to forge and maintain partnerships, explore joint ventures, meet with suppliers and clients, sustain corporate relationships, and market or promote a product or service.
The increasing trend of blending business trips with leisure activities to create a more enjoyable experience and improve work productivity is significantly boosting the global business travel sector. Furthermore, the rise of online travel agencies (OTAs) like booking.com, KAYAK, and Expedia is fueling the expansion of this market. The sector’s growth is also propelled by the wider travel and tourism industry’s development, government efforts to enhance the MICE (meetings, incentives, conferences, and events) sector and small and medium-sized enterprises (SMEs), along with the broadening scope of global business operations.
Innovations such as the merging of business and leisure travel (bleisure), the Internet of Things (IoT), the emergence of smart hotels, virtual reality in hotel reservations, and customized guest experiences are driving the market forward. The implementation of robotics in hospitality, for greeting guests, information provisioning, luggage management, and cleaning, as well as in food service and preparation, is captivating hotel customers.
The business travel market is analyzed through several lenses: by service (transportation, food & lodging, recreation), industry type (government, corporate), traveler type (group, solo), and geography (North America, Europe, Asia-Pacific, and LAMEA).
Notable entities in the business travel field include American Express Company, BCD Group, CWT Global B.V., and several others. They leverage robotics for tasks like customer pre-screening, reducing direct human interaction and potentially fostering market growth. However, the surge in virtual meeting technologies poses challenges by offering cost-effective and time-saving alternatives to physical travel. Nonetheless, increasing infrastructure investments and the burgeoning travel retail sector present promising opportunities for the market.
The COVID-19 pandemic significantly disrupted global economic activities, with the business travel sector experiencing a sharp decline in spending, surpassing the financial impact of the 2008 recession. However, governmental measures, like those by Singapore’s Health Ministry to expand MICE event capacities, have aimed at revitalizing the industry. The continuous influx of corporate activities, government initiatives to support SMEs, and liberal market policies for foreign direct investments are anticipated to fuel further market growth. Despite challenges such as high travel costs and geopolitical uncertainties, investments in infrastructure and technological innovations hold the potential to unlock new market opportunities.
This comprehensive report underscores the dynamic growth forecast for the business travel market and highlights key segments poised for significant expansion. It serves as a crucial resource for strategic planning, offering insights into merging trends, market determinants, and competitive strategies to stakeholders and potential investors in the business travel domain.
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