Business Travel – Key Trends and Market Analysis by Destinations, Challenges and Opportunities, 2024 Update

Business Travel Market Report Overview

The business travel market value was $245.23 billion in 2023. The pandemic significantly impacted the business travel industry, due to travel restrictions and a subsequent decline in employees’ confidence to travel for business purposes. The recovery phase has been underway since 2021, and thanks to a reduction in travel restrictions, the market is expected to reach its pre-pandemic level in 2024 and will continue its growth trajectory at a CAGR of more than 11% from 2023 to 2027.

Business travel, also known as global corporate tourism, includes attending conferences, trade shows, meetings, negotiations, and training sessions. This practice fosters international collaboration, networking, and the expansion of market reach. Business tourism significantly contributes to the global economy through activities like team-building retreats, company off-sites, and other corporate events.

Business Travel Market Outlook, 2023 – 2027 ($Billion)

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The business travel market research report provides an in-depth analysis of the key market trends that will shape the business travel market in the coming years. It also gives insights into the business online travel industry and provides company snapshots of a few of the key destinations, as well as the industry challenges, and opportunities.

Business Travel – Key Trends

The business travel industry has experienced numerous changes in recent years, with many key themes influencing its operations and outlook. Businesses are creating new operating and business models in the post-pandemic era as per the changing customer needs. Pricing and bleisure travel are a few of the key market trends impacting the business travel market.

Pricing: The increase in demand for travel is increasing due to which it is anticipated that there will be a global rise in flight and hotel rates, which will impact future travel plans and corporate budgets. Factors such as demand, employment, economic conditions, global events, natural disasters, and geopolitical tensions will influence pricing.

Blesiure travel: The demographic shift in corporate travel, particularly during COVID-19, has led to a rise in blesiure travel experiences. As the workforce becomes younger, more employees seek leisure activities during their trips. Tourism companies can capitalize on this trend by targeting local attractions and events, as well as promoting work-life balance and job satisfaction.

Business Travel Market Segmentation by Key Destinations

The top destination markets for business travel are the United States, France, Italy, China, and Austria among others. In 2023, the US was the most popular location for business travelers due to its good combination of business opportunities and leisure; well-regarded colleges; and a skilled labor force.

Business Travel Market Analysis by Key Destinations, 2023 (%)

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Business Travel Passenger Flows

International business travel & domestic business travel are the two most popular modes of business travel passenger flows.

International Business Travel: International business trips were hugely impacted post-2019 due to COVID-19. It has closed borders and reduced both the transportation of tourists and tourist demand. Nationwide lockdowns resulted in the rescheduling and cancellation of most operations in the hotel, motel, restaurant, and transportation sectors. The overall outbound trips for business purposes during 2023 was 174.23 million and is likely to reach its pre-pandemic level in 2024. Globalization drives the demand for international business travel, as businesses expand their operations, diversify revenue streams, and capitalize on emerging trends.

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Business Travel Market – Challenges and Opportunities

Environmental Impact: Business travel contributes to carbon emissions and environmental degradation. To help reduce carbon emissions, organizations adopt sustainable practices. They use video conferencing and eco-friendly accommodations, for instance. These practices not only lessen environmental impact but also save costs. They save costs associated with traditional travel. Moreover, they enhance a company’s reputation. Additionally, they attract environmentally conscious clients and employees.

Networking and Collaboration: Business travel gives professionals the ability to connect, work together, and form bonds with partners, clients, and colleagues in the same industry all over the world. It facilitates knowledge exchange, business development, and strategic alliances through conferences, trade shows, seminars, and corporate events. In addition, it offers fresh viewpoints and insights. It provides concepts for innovation and expansion within businesses. This gives them a competitive advantage as they explore uncharted territories. For markets, trends, and technology, they investigate with a newfound perspective.

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Scope

This report provides an analysis of the business travel industry including insights into business travelers,

market trends, consumer trends, destinations, sector deals, challenges, and opportunities.

Key Highlights

The overall outbound trips for business purpose during 2023 was 174.23 million which was an increase of 68.95% in comparison with 2022 (103.3 million trips). Globalization drives the demand for international business travel, as businesses expand their operations, diversify revenue streams, and capitalize on emerging trends. However, the outbound trips undertaken during 2023 remains lower than its pre-pandemic level in 2019 (207.28 million trips). GlobalData forecasts that outbound business travel is set to reach pre-pandemic levels in 2024 (220.12 million) and reach 276.63 million trips in 2028 with a CAGR of 9.69% from 2023 to 2028.

According to GlobalData’s traveler demands and flows database, Chinese travelers took 13.87 million outbound business trips in 2023, which represented 7.96% of overall global business trips. Although there has been tremendous growth in China’s domestic tourism after the removal of the country’s domestic zero-COVID policies, its outbound tourism has faced more constraints.

The global business travel market value in 2019 reached $239.34 billion, which decreased by 3.7% ($9.09 billion) compared with 2018 ($248.43 billion). The pandemic significantly impacted the business travel industry, resulting in a reduction in market value to $96.58 billion in 2020 due to travel restrictions and a subsequent decline in employees’ confidence to travel for business purposes. The recovery phase has been under way since 2021, and thanks to a reduction in travel restrictions, the market value reached $145.49 billion in 2021 before rebounding further to $197.23 billion in 2022. However, the market value of business travel was lower than the pre-pandemic level.

During 2023, the overall global international arrivals for business purposes reached 166.01 million trips, which was an increase of 44.79% compared with 2022 (114.66 million trips). However, this is still lower than its pre-pandemic level in 2019 (209.00 million trips). The pandemic in 2020 caused a significant decline in business travel, causing many employees to work from home and canceling scheduled meetings and conferences.

Reasons to Buy

• Gain an 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.