Business travel market registering growth of 4.1% and set to reach $1.7 trillion by 2023

Substantial development of the travel & tourism sector has fostered the demand for business travel

The report, titled Business Travel Market by Service (Transportation, Food & Lodging, and Business Activity), Industry (Government and Corporate), and Traveler (Group and Solo): Global Opportunity Analysis and Industry Forecast, 2017-2023 by Allied Market Research, monitors the key industry trends, drivers and opportunities within the business travel industry.

According to the report, the global business travel market was worth more than $1.3 trillion (£1.01 trillion) in 2017. With the estimated increase in worth expected through 2023, the industry will register a growth rate of 4.1 per cent during 2017-2023.

The report’s findings reflect a similar prediction by the Global Business Travel Association (GBTA), which said the market will reach $1.7 trillion a year earlier in 2022.

Allied Market Research says an increase in travel and tourism and “rapid globalisation of businesses” have boosted this growth.

In particular, a boom in the food and lodging segment contributed about half of the market share in 2017, owing to the increasing involvement of accommodation booking services such as Airbnb. According to the report, this segment is expected to see the fastest growth rate at 4.7 per cent.

The corporate industry segment garnered the largest market share in 2017, contributing about 64.61 per cent of the total revenue. It will also register a growth rate of 4.7 per cent due to an increase in activities such as client meetings, as well as brand and product promotions.

Rise in travel & tourism has intensified the demand for business travel market. Moreover, increase in globalization of businesses and continued growth of SMEs supplement the market growth. In addition, increase in infrastructural investments by regional governments and rapid growth in travel retail market are anticipated to fuel the growth of the global market during the forecast period. However, increased adoption of technology impedes the market growth, as the SMEs prefer video conferencing over traveling.

Asia-Pacific is the largest business travel market in the world, owing to strong economic growth. In addition, high penetration of internet & technology in densely populated countries boost the growth of the market. Moreover, increase in penetration of IoT is supporting both travelers and travel operators in managing different operations related to business travel such as planning, booking, and being updated with the current status of their travel program.

 

China generated the maximum revenue in Asia-Pacific in 2016. The key industry segments boosting the growth for business travel market in China are manufacturing, utility & agriculture, and forestry & fishing.

Group traveler segment accounted for the maximum share in 2016, as the amount spent on a group travel is much lower than in solo travel. Moreover, service providers offer discounted rates on accommodation and transportation of group travel, which acts as a major driver of the market. In addition, traveling in a group helps in exchanging ideas and experience, which further boosts the company’s productivity level, thereby promoting the growth of the group business travel market.

Business travel is an integral part of the corporate sector. The activities in the corporate sector are driven by profit maximization motives. Client meetings, brand & product promotions, business expansion, employee training, and incentives are some of activities involved in business travel. Thus, frequent corporate domestic and international trips have supplemented the corporate travel market growth.

Major companies profiled in the report include Airbnb Inc., American Express Travel, Expedia Inc., BCD Travel, Carlson Wagonlit Travel, Flight Centre Travel Group, Hogg Robinson Group, The Priceline Group, Fareportal, Inc. (travelong inc.), and Wexas Travel.

Source Allied market research
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