The business travel market will grow by 2027 to exceed

According to a new report published by Allied Market Research, titled “Business Travel Market by Service, Industry and Traveler: Global Opportunities Analysis and Industry Forecast, 2021-2028”, the global business travel market size of business is expected to reach $2,001.1 billion by 2028 at a CAGR of 13.2% from 2021 to 2028.

World Leaders:

Airbnb, Inc., American Express, BCD Group, Booking Holdings Inc., Carlson Wagonlit Travel, Corporate Travel Management, Expedia, Inc., Fareportal, Flight Center Travel Group Limited and Wexas Limited.

Business travel or business tourism refers to the travel or travel activity performed for various business purposes such as meetings, negotiation of agreements, networking, trade shows and exhibitions. Business travel is undertaken primarily to establish partnerships, joint ventures, meet suppliers and customers, maintain business relationships, and promote products or services.

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The growing popularity of leisure incorporating business with recreational or leisure activities to relieve stress and improve work efficiency is propelling the global business travel market. The development and growth of various online travel agencies (OTAs) such as, KAYAK, and Expedia are contributing to the growth of the global business travel market.

In addition, the growth of the global business travel market is driven by the expansion of the travel and tourism industry, the upsurge in government initiatives for the development of the MICE segment (meetings, incentives, conferences and events) and of the SME sector, and increasing globalization. work.

Trending factors driving the business travel market include bleisure travel (business + leisure), IoT (internet of things), development of smart hotels, virtual reality for hotel bookings and personalization . All these developments in hotels will drive the growth of the catering and lodging segment as well as the overall business travel market in the near future.

Additionally, the use of robotic technology is a trending factor that attracts customers to hotels. Robots are used in hotels to greet guests, provide information, handle luggage and clean. In restaurants, robots can potentially be used in food service and food preparation. Additionally, travel agents use bots to pre-screen customers.

The use of robotic technology is very helpful in reducing human-to-human contact which could drive the growth of the business travel market in the future.

Main results of the study

Business Travel Market was valued at USD 695.9 Billion in 2020 and is projected to reach USD 2,001.1 Billion by 2028, growing at a CAGR of 13.2% during the forecast.

By industry, the food service and accommodation segment is estimated to be the fastest growing, registering a CAGR of 14.2% during the forecast period.

In 2020, according to the industry, the corporate segment was valued at $457.1 billion, accounting for 65.6% of the global business travel market share.

In 2020, the United States was the largest market in North America and is expected to reach $23.5 billion by 2028, growing at a CAGR of 12.5% ​​over the forecast period .

The COVID-19 outbreak has caused a global shutdown of economic activities, causing severe damage to the tourism industry. According to the Global Business Travel Association (GBTA), global business travel spending fell 52% in 2020 and losses are 10 times greater than during the Great Recession of 2008.

Spending on business travel fell by approximately 60% in North America, Europe by 78% and Asia-Pacific by 48% in 2020. Overall spending on business travel worldwide fell by around 52%, resulting in huge revenue losses for players operating in the business travel market.

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The government has attempted to introduce COVID-19 measures to revive the declining business travel industry. For example, the Ministry of Health in Singapore announced the increase in capacity limits for MICE events to 750 people from 250 people in April 2020. This decision was appreciated by the Singapore Association of Congress Organizers and Suppliers and of exhibitions (Saceos). According to the president of Saceos, this was the most necessary step to reopen and restart the MICE industry. However, few market participants were very concerned about the increased costs due to the extension of capacity limits.

The global business travel market is segmented on the basis of service, industry, traveler and region. Based on service, it is segmented into transport, catering and accommodation, and leisure. Based on industry, the business travel market is segmented into government and corporate. The business travel market, on a traveler basis, is categorized into group and solo traveler. By region, the global business travel market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

According to the business travel market forecast, based on service, the catering and accommodation segment is expected to be the fastest growing segment, with a CAGR of 14.2% during the period forecast. Food and accommodation was also the dominant segment, with around 50.3% market share in 2020. The increasing penetration of hotel booking agencies such as Airbnb and Oravel Stays is driving the growth of the food and beverage segment. accommodation.

According to the business travel market analysis, based on the industry, the corporate segment was the dominant segment and is also expected to be the fastest growing segment owing to the growth of business activities across the globe . The enterprise segment accounted for around 65.6% market share in 2020 and is expected to grow at the highest CAGR of 14.1% during the forecast period.

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Based on travellers, the group was the largest and fastest growing segment which garnered 59.5% market share in 2020 and is expected to grow at a significant CAGR of 14.3% in the future close. The group segment is booming as the cost involved in group tourism is lower. Additionally, service providers offer discounted rates on accommodation and transportation for group travel.

Based on region, Asia-Pacific is the largest and fastest growing market for business travel due to rapid growth in infrastructure, favorable conditions for creating companies and government policies to attract foreign investment. Asia-Pacific accounted for 43.5% of the market in 2020, followed by North America and Europe which constituted 26.3% and 24.3% of the market share respectively in 2020. LAMEA is expected to show a Considerable growth due to growing business activities, increasing government initiatives to attract (foreign) FDI. direct investments) and the continued development of infrastructure in the region.

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Allied Market Research, a market research and consulting firm of Allied Analytics LLP, provides market intelligence and market research reports to large, small and medium-sized businesses. The company helps its clients to develop business strategies and achieve sustainable growth in their respective market area.

This press release was published on openPR.

Willie R. Golden