With businesses opening up after COVID 19 changes in customer needs, and latest trends of bleisure trips, the business travel market is seeing a great trend shift. The market is relevant for all the individuals or groups involved in undertaking or facilitating business trips. The market is greatly influenced by global trade, corporate events, trade shows and more. It greatly impacts the global economy, drives business growth across different regions. This article provides an overview of the global business travel market, including its size, growth trends, challenges, and future prospects.
Current size of business travel market
Allied Market Research reported that the global business travel market size was valued at $1,266.83 billion in 2019. It is projected to reach $2,109.25 billion by 2027, growing at a CAGR of 5.3% from 2020 to 2027. The growth in the market is a result of globalization of businesses, expansions of SMEs and technological advancements.
Key corporate travel facilitators
The corporate travel market is highly competitive, with numerous players operating in the industry. Some of the key players in the corporate travel market are:
Providing one of the most advanced corporate travel management platforms, Paxes is a growing corporate travel facilitator. The self booking platform offers tools such as spend analyzer, employee tracking and more.
2. American Express Global Business Travel
It is one of the largest corporate travel management companies in the world, providing end-to-end corporate travel solutions to clients in over 140 countries.
3. Carlson Wagonlit Travel
Carlson Wagonlit Travel is a global leader in managing business travel and meetings and events. It provides travel management services to companies of all sizes across various industries.
4. Expedia Group
The group operates through several brands, including Expedia, Travelocity, and Orbitz. It offers a range of services to corporate travelers, including booking flights, hotels, and ground transportation.
A subsidiary of Expedia Group, Egencia provides corporate travel management services to small and medium-sized businesses. It offers a range of travel management solutions, including booking and reporting tools.
Suggested Read: Top 5 Business Travel Booking Sites In 2023
Top trends in business travel
Trend 1: Technology-enabled travel experience
With technology growing at a rapid rate, the approach and way of business travel is changing drastically. Employees can now compare and book flights, hotel, and transport under the travel policy of the company from mobile apps. These tools provide AI backed solutions for travel management and reporting. The automation and streamlining of travel processes have made business travel management easier for travel managers and TMCs. Integration of AI (Artificial Intelligence) and IoT (Internet of Things) have made travel prediction and support easier.
Trend 2: Sustainability and social responsibility
As a corporate grows in size, employee travel shows visible effects on the environment and society. Hence, mitigating the impact of business travel becomes an obligation for the companies. To maintain the rules and regulations, the business travel market is expanding in the sustainable tours. Companies are opting for eco-friendly alternatives that reduce carbon emissions. They are investing in measures that will limit the carbon footprint of corporate travel.
Trend 3: Personalization and flexibility
In an era of hyper-personalization, business travelers expect their travel experience to be tailored to their individual needs and preferences. Companies are responding by offering more flexible travel policies. They allow travelers to choose their own flights and accommodations along with personalized perks like airport lounge access and concierge services. Further the companies are leveraging data and analytics to gain insights into travelers’ preferences and behaviors, enabling them to provide more customized travel experiences.
Trend 4: Live updates and emergency alerts
Geopolitical uncertainty, including trade disputes, political instability, and natural disasters, has become a significant challenge for the business travel market. These events can disrupt travel plans, increase costs, and pose risks to travelers’ safety and security. As a result, companies are investing in travel risk management solutions, such as real-time alerts, emergency assistance services, and insurance coverage. Additionally, companies are diversifying their travel strategies to reduce their exposure to geopolitical risks. This may include expanding their travel supplier networks, avoiding high-risk destinations, and incorporating contingency plans into their travel policies.
Opportunities for growth
Despite the challenges faced by the business travel market due to COVID-19 and geopolitical scenarios, there are significant opportunities for growth, particularly in emerging markets. As more companies expand their operations globally, business travel to the regions such as Asia-Pacific, Latin America, and Africa has increased over the years. Further, the inclusion of travel-tech has made business travel easier and simpler. Today, companies can predict the travel trend and explore trip efficiency as per the different regions.
As the market evolves and new technologies emerge, it is likely that the business travel landscape will continue to change. The companies are looking to adopt new strategies and technologies to improve their travel operations and ensure the safety and well-being of their travelers. Overall, the business travel market remains an important sector of the global economy. It is likely to remain a key focus for companies seeking to expand their operations globally.
Suggested Read: How To Choose The Best Travel Management Company?
Business Travel Market FAQs
Which are the top business travel facilitators?
Paxes, Expedia, Thomas Cook are some of the top players.
What are top trends in business travel market?
Technology and sustainability are top trends in the market.
What are the safety protocols for safe business travel?
For a safe business travel one should opt for Duty of Care and constant updates on mobile.