Business Travel Market Size, Share & Industry Analysis, By Service (Transportation, Food & Lodging, and Recreation), By Traveler (Solo and Group), By Industry Type (Corporate and Government), and Regional Forecast, 2024-2032

The global business travel market size was valued at USD 1,380.00 billion in 2023. The market is projected to grow from USD 1,483.09 billion in 2024 to USD 2,765.34 billion by 2032, exhibiting a CAGR of 8.10% during the forecast period. Asia Pacific dominated the business travel market with a market share of 37.15% in 2023.

Business travel refers to the tour of individuals who are representing their business or organization for work-related reasons, such as industry conferences, client meetings, sealing business deals, industry networking sessions, seminars, training sessions, workshops, and others. This type of travel plays a vital role in expanding and sustaining business across the countries. Furthermore, the rise in the number of startups, growing footfall of young professionals, and increasing number of corporate events, trade shows, and others are the factors boosting the market growth.

The COVID-19 pandemic adversely impacted the global market. During the pandemic period, governments across countries implemented lockdown practices, travel restrictions, quarantine & gathering restrictions, and food & lodging services were closed.  The services of national and international traveling agencies were also cut off. According to the UN Tourism, the COVID-19 pandemic has caused a 72% fall in international tourist arrivals in 2020 which has resulted in 1.1 billion fewer international tourists globally. 

Business Travel Market Trends

Rise in Growth of Small and Medium-Sized Enterprises (SMEs) Globally to Boost Market Growth

SMEs play a vital part in a country’s economy, GDP growth, industrial production, job creation, and others. The rising support of governments across countries is the major reason for the growth of SMEs. According to Invest India, Micro, Small & Medium Enterprises (MSMEs) are the backbone of India as they contribute nearly 30% of the country’s Gross Domestic Product (GDP), 45% of manufacturing output, and also employ 11 crores of India’s population. In addition, the Indian government has delivered added credit to more than 130 lakh MSMEs under the Emergency Credit Line Guarantee Scheme (ECLGS). According to the World Bank Group, SMEs signify about 80% of business and more than 50% of employment globally. Thus, the rising number of SMEs in developed and developing regions, along with rising government support, is slated to further boost the growth of the market.

Business Travel Market Growth Factors

Surge in Technological Advancements to Fuel Market Growth

The growth of technology has profoundly transformed diversified aspects of business travel. With the evolution of technology, the landscape of this type of travel has enhanced convenience, improved efficiency, and the travel experience of business travelers. Technological advancements have smoothened booking processes and improved safety and security measures. In addition, the launch of online booking platforms such as Kayak, Expedia, Routerspring, and others offers comprehensive services for booking hotels, rental cars, and booking flights. In addition, the launch of virtual and augmented reality technologies into the travel industry has made business travel management easier and more comfortable. The development of security technologies such as biometric identification, real-time tracking, emergency support systems, and others has further improved the safety of business travelers. Furthermore, technologies enable businesses to optimize travel expenses by providing access to the best services & deals, reducing administrative overhead expenses, and ensuring compliance with business travel policies. Thus, the rise in the adoption of technology in businesses is expected to further boost the growth of the global market.

Growing Number of Corporate Events Globally to Drive Market Growth

Company events are significant elements of the corporate culture and marketing strategies for a large number of companies. The rise in the number of various corporate events in developed and developing regions for communicating the organization's strategy, announcement of product launches, influencing customer or partner behavior, motivating & rewarding the employees, and others are the factors driving the growth of the industry. In addition, corporate events are organized to build brand awareness and internal and external relationships, boost company morale, improve staff motivation and productivity, strengthen team cohesion, celebrate team success, and others. Furthermore, the rise in growth of small and medium-sized enterprises (SMEs) has further surged the demand for this type of travel.

RESTRAINING FACTORS

Surge in Political Crisis Globally is Restricting Market Growth

The rising political discrepancies have resulted in a decline in the number of travelers at a global level. The deteriorating international political environment and unstable political situation are the factors that adversely impact the sustainable growth of business travel market. Furthermore, trade wars, cyber-attacks, international land disputes, pandemics, military tensions, and others all contribute to the political crisis at an international level. The rising conflicts and war situations such as Russia & Ukraine, India & Pakistan, India & China, Israel & Gaza, and others are the factors that adversely affect international tourism and thereby restrain the growth of the market.

Business Travel Market Segmentation Analysis

By Service Analysis

Rise in the Trend of Online Booking Services to Surge Food & Lodging Segment Growth 

Based on service, the industry includes transportation, food & lodging, and recreation.

The food & lodging segment holds a major share of the global market. The rising trend of online hotel booking through apps such as Agoda, goibibo, and others, along with the rising trend of corporate events at the domestic and international levels, is slated to fuel the growth of the market.

The transportation segment is projected to grow at a significant CAGR during the forecast period. The convenient transport facilities along with easier online booking service and payment options are the factors which have made business trips more comfortable.

By Traveler Analysis

Group Segment to Dominate Owing to a Surge in Team Meetings to Enhance Productivity

Based on traveler, the market is divided into solo and group.

The group segment is poised to hold a major business travel market share during the forecast period. The primary objective for group travel is to facilitate collaboration, increase networking opportunities, and enhance productivity by doing face to face interactions with the clients and team members. The increasing number of corporate meetings and events globally necessitates group travel. Group travel also helps businesses avail themselves of more attractive accommodation discounts compared to individual travel.

The solo segment is estimated to grow with a significant CAGR during the forecast period.  Solo travel promotes productivity, efficiency, learning opportunities, cost savings, enhances client relationships, and others.

By Industry Type Analysis

Rising Number of Corporate Events to Foster Segment Expansion

Based on industry type, the market is bifurcated into corporate and government.

The corporate segment holds a major market share due to the rise in the number of meetings, conferences, client visits, training & development, partnerships & collaborations, strategic planning, brand recognition activities, and others. Intensifying competitive rivalry among privately held companies fuels the need for continual corporate events and meetings, increasing corporate group and individual travel. At a macro level, client-focused trips increase the frequency of corporate-related travel across countries.

The government segment is expected to grow with a significant CAGR during the forecast period. The government undertakes travel for diversified purposes such as attracting foreign investments, building international relations, participating in global conferences, forums, meetings, international cooperation, and others.

REGIONAL INSIGHTS

Regionally, the market is segregated into Asia Pacific, South America, North America, Europe, and the Middle East & Africa.

Asia Pacific region dominates the market owing to a surge in the number of Small And Medium-Sized Enterprises (SMEs), startups, multinational companies, improved transportation, and availability of resources. The growing infrastructure and business environment, government subsidies, high e-commerce penetration, and others are the factors that are further fueling the growth of the Asia Pacific region.

Europe region is anticipated to register the highest CAGR during the forecast period. The improved economic conditions, along with enhanced services, technologies, stable legal systems, and sustainability, are factors encouraging individuals to visit Europe for business expansions, partnerships, acquisitions, and trade. Furthermore, the business-friendly environment and affluent customers in the region are attracting large foreign companies, which is further expected to boost the regional market.

North America market is set to grow at a substantial CAGR during the forecast period due to rising advancements in technology, high disposable income, and strong growth in sectors such as technology, finance, healthcare, e-commerce, defense, and others. Furthermore, the rising government meetings and conferences in the region for economic development, trade promotion, crisis management, and others are the factors boosting the North America business travel market growth.

South America and the Middle East region have witnessed growth in the business travelers segment owing to the high government investment in improving infrastructure, low-cost carriers, geographic location, tourist attractions, and others. Furthermore, the government's strong support for startup small, medium, and large businesses by providing mentorship assistance in obtaining licenses, loans, and others is further slated to positively change the business travel outlook.

KEY INDUSTRY PLAYERS

Key Companies to Adopt Innovative Strategies to Gain a Competitive Edge

The market is highly competitive, and prominent companies, such as American Express Global Business Travel, BCD Travel, Booking Holdings Inc., Travel Group Limited, and others, are focusing on technological innovations, partnerships, and business expansions to gain a strong foothold in the market. The key business players are also focusing on their promotion and marketing strategies to create strong brand awareness.

LIST OF TOP BUSINESS TRAVEL COMPANIES:

• American Express Global Business Travel (U.S.)


• BCD Travel (Netherlands)


• Booking Holdings Inc. (U.S.)


• Corporate Travel Management (Australia)


• Travel Perk (Spain)


• Frosch International Travel (U.S.)


• Navan (U.S.)


• Flight Centre Travel Group (Australia)


• World Travel, Inc. (U.S.)


• ITILITE Technologies Private Limited (India)

KEY INDUSTRY DEVELOPMENTS:

• June 2024 – KAYAK, a metasearch engine for travel services, including rental cars, hotels, air flights, and others, included a premium option to its travel management offering for small and mid-sized enterprises. This newly added option includes features such as around-the-clock agency support, group bookings, and corporate rate access.


• May 2024 –  Navan, a travel management company, extended its partnership with Amadeus. The partnership will help the company broaden its content offering, improve customer-facing service, and boost its ongoing business expansion.


• March 2024 –  Spotnana Technology, Inc., a travel tech company, launched a new tool for corporate use. The new tool will have the ability to apply specific travel windows and travel policies, payment methods, and others. It will help the company enhance its customer reach.


• January 2024 – MakeMyTrip, an online travel company, partnered with Zoho to smoothen corporate travel and manage expenses by providing solutions across the business sectors.


• November 2022 – BCD Travel, which deals in providing travel services to corporates, enhanced its agreement with software company Sabre Corporation. The enhanced partnership will deepen its technology development and result in making the website more user-friendly.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects, such as competitive landscape, regional analysis, service, traveler, and industry type. Besides this, it offers insights into various market trends and highlights key industry developments. In addition to the above-mentioned factors, the business travel market report encompasses several other factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation