Business Travel Market Trend and Analysis of Traveller Types, Key Destinations, Challenges and Opportunities, 2022 Update

The business travel market size was $164.7 billion in 2021. The sector has seen a drop in trips YoY from 2020. Early in the pandemic, many experts had predicted that international business trips would start recovering in 2021. However, business travel has proven to be a much more complex sector than leisure travel during this time. Leisure travel detractors often center around economic, environmental, and safety issues. However, business travel encompasses not only all these issues but also the added layers of corporate responsibility, budgeting, and the evolution of hybrid working. These factors have significantly slowed international business travel’s recovery. As a result, it is not expected to recover until at least 2026.

The business travel market research report provides an analysis of the business travel industry including insights into business travelers, market trends influenced by COVID-19, consumer trends, destinations, sector deals, challenges, and opportunities.

What are the business travel market trends?

Currently, there is a global energy crisis partly caused by the pandemic. Energy reserves were reduced significantly because of the demand for heat, gas, and electricity due to lockdowns. In addition, the current geopolitical situation between Ukraine and Russia is also having a significant impact on the cost of energy, with many sanctions imposed on Russia’s oil, gas, and economy in general. Europe has been hit hard by this, and the situation is unlikely to resolve in the next one to two years. Much depends on renewable energy development and relationships with North Africa and the Middle East regarding oil and gas supplies. Ultimately, these factors have resulted in the cost of living increasing across all corners of the globe, putting pressure on a business’s operational overheads. The travel industry will also witness increased air fares and higher room rates in hotels due to rising functional costs.

Furthermore, the economic hardship many businesses faced during the pandemic is still prevalent. While most parts of the world are experiencing some form of normality, shopping habits have changed. Some consumers are now spending less and saving more. Yet, others have seen their disposable income dwindle due to high energy costs. Many businesses have had to increase prices and continue to pay off debt incurred during the pandemic. Many financial support packages offered by governments worldwide have now ceased, and businesses are left to fight independently. These factors have resulted in companies cutting back their corporate travel budgets, with business travel not always seen as necessary.

What was the impact of COVID-19 on the business travel market?

The overall concern surrounding the COVID-19 pandemic has fallen considerably over the last two years. Owing to easing COVID-19 restrictions, many airlines and hotels are starting to wind back certain rules and procedures. Several airlines have removed mandates for passengers to wear masks on board. Examples include British Airways, Virgin Atlantic, and KLM, all of which are popular airlines with business travelers due to their presence in key economic cities in the US, Europe, and Asia.

Currently, most chain hotels are continuing with quite rigorous cleaning procedures. Mask mandates also vary from one property to the next and can be based on the hotel’s policy or the government’s policy for masks to be worn in public areas. However, hotels could likely pull back some of their cleaning procedures to save on the expensive operational costs. However, contactless services will remain, including guest check-in. Similarly, the car rental industry is also likely to move in this direction.

What are the key themes impacting the business travel market?

Some of the key themes impacting the business travel market are big data, online travel, travel apps, machine learning, and geopolitics.

Business Travel Market Analysis by Themes

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What are the key segments in the business travel market?

The key segments in the business travel market are international business travel and domestic business travel.

Despite many travel restrictions easing by the end of 2021, business travel continued to suffer due to the extra layers of complexity involved in this type of travel. Many businesses have been cautious about allowing employees to return to the office and have face-to-face meetings. As a result, conferencing platform Zoom experienced unprecedented growth during the pandemic and this trend continued in 2021, with many businesses seeing it as a more cost-effective method to communicate with clients, host conferences, and collaborate on projects.

Which are the leading companies in the business travel market?

The leading companies in the business travel market are American Express Travel, Direct Travel, Expedia Group, BCD Travel, Internova Travel Group, AMEX Global Business Travel, Booking Holdings, CWT, Fareportal, and Flight Centre Group.

Market report scope

 Scope 

This report provides an analysis of the business travel sector including insights into business travelers, market trends influenced by COVID-19, consumer trends, sector deals, challenges, and opportunities.

Reasons to Buy

• Gain insight into business travel’s leading players.
• Understand how they have adapted to the threat of COVID-19
• Understand the key business travelers that companies can look to attract
• Gain a detailed understanding of the key trends, issues, and challenges facing business travel companies (TMCs)