Business Travel – Key Trends and Market Analysis by Destinations, Challenges and Opportunities, 2024 Update
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Analysis of the business travel sector including insights in business travelers, market trends influenced by COVID-19, consumer trends, destinations, sector deals, challenges and opportunities.
Business Travel Market Trends
Some of the key trends influencing the business travel market trends are growth in technology usage, Bleisure travel, online marketing, personalization, and flexibility, and the rise of AI, virtual reality, and intelligent assistants.
Bleisure Travel: Many travelers currently engage in “Bleisure” travel, which is gaining popularity as it provides opportunities to relax, adventure etc. This has been aided by many small and large business companies maintaining remote work cultures.
Online Marketing: As the pandemic has had a huge impact on the business travel industry, the demand for online marketing has increased. Online marketing is accelerating business travel booking and helping many travel agencies and companies to reach a global audience.
Top Business Travel Market Trends
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Business Travel Market Segmentation by Destinations
The key destinations in the business travel market are France, the United States, Italy, the United Kingdom, Austria, Spain, Germany, the Netherlands, Mexico, and Poland.
In 2022, France emerged as the most popular destination for business travelers as it is a good combination of business and leisure, well-regarded colleges, and a skilled labor force. France welcomed 1,725 foreign investment projects in 2022, which resulted in the creation or preservation of 58,810 jobs.
Business Travel Market Analysis by Destination, 2022 (%)
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Business Travel Market – COVID-19 Impact
Business travel industry expenditure is expected to bounce back to pre-pandemic levels in 2024. COVID-19 has caused widespread aircraft, train, and other transportation cancellations, greatly disrupting the travel sector. As a result, hotels, airlines, resorts, car rental agencies, well-known tourist destinations, and conference centres have also been negatively impacted. Business travel has decreased for many companies because of COVID-19 travel restrictions, which forced many workers to work from home. As a result, corporate travel expenses decreased. However, restrictions have eased significantly, and due to a rise in demand for face-to-face interactions, resumption of travel, and meetings, business travel is anticipated to approach its pre-pandemic level.
Strong vaccination rollouts gave many countries the confidence to ease travel restrictions. Moreover, a fall in negative sentiment toward COVID-19 has motivated corporates to focus on developing their client relationships through business travels and face-to-face events. For example, in 2023, China stated that travelers won’t need COVID-19 tests to enter the country. This streamlined entry will help boost China’s economic revival and tourism industry.
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Business Travel Market Segments
The key segments in the business travel market are international business travel and domestic business travel.
International Business Travel: International business trips was significantly impacted post-2019 due to the pandemic. Government lockdowns and travel restrictions forced employees to work-from-home, significantly altering the working model of many companies. However, with the recovery from the pandemic, meetings and events that take place in person are returning, and certain international business travel capacity and volumes are recovering. These are expected to be the key drivers for the growth of business travel.
Domestic Travel Market: In 2022, many countries began to lift pandemic-induced restrictions and many companies began to summon employees back to the office, often in a hybrid work model. Global domestic business trips showed positive signs in 2022, increasing to 870.72 million trips. As the trend of a hybrid working model is expected to remain, global domestic tourism is expected to reach and exceed its pre-pandemic level in 2023. Travelers from the US are expected to contribute a larger proportion of domestic business trips in 2027.
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Business Travel Market – Leading Companies
The leading companies in the business travel market are Sabre, Helloworld Travel, Wayte, and NusaTrip.
Leading Companies in the Business Travel Market
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Scope
This report provides an analysis of the business travel sector including insights in business travelers, market value, market trends influenced by COVID-19, consumer trends, 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 chellenges facing business travel companies (TMCs)
Expedia Group
American Express Global Business
TravelPerk
Flight Centre Travel Group Ltd
BCD Travel
CWT (Carlson Wagonlit Travel)
TravelBank
Hopper
Corporate Travel Management Ltd
Table of Contents
Frequently asked questions
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What was the business travel market size in 2022?
The business travel market size was $197.23 billion in 2022.
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What will be the business travel market CAGR during 2022-2027?
The business travel market will grow at a CAGR of 17% during 2022-2027.
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Which was the most preferred destination in the business travel market in 2022?
France became the top destination for business travel market.
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What are the key technology trends impacting the business travel market?
Some of the key technology trends impacting the business travel market are voice search & voice control, robots, contactless payments, cybersecurity measures, Big Data, Internet of Things (IoT).
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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.
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Which are the leading companies in the business travel market?
The leading companies in the business travel market are Sabre, Helloworld Travel, Wayte, and NusaTrip.
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