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The business travel market size is forecast to increase by USD 1,535.23 billion at a CAGR of 24.42% between 2022 and 2027. Market expansion hinges on various factors, notably the rapid pace of technological advancement. Innovations continue to reshape the travel industry, particularly in digitalizing payment systems. This shift streamlines transactions, offering travelers convenience and security globally. Additionally, hotels increasingly offer comprehensive business services catering to corporate travelers' needs. This trend enhances the overall guest experience, driving satisfaction and loyalty. Moreover, the availability of these services aligns with broader industry shifts toward modernization and efficiency. As technology integrates further into travel experiences, businesses embracing these advancements benefit from increased operational efficiency and enhanced customer engagement. Thus, the convergence of technological innovation, digital payments, and enhanced hotel services collectively propels market growth, fostering a dynamic and competitive landscape.
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In the realm of business travel, catering to the needs of business travelers is paramount. Efficient travel retail services and the integration of chat bots streamline business work logistics. Alongside regular tourism, these elements enhance the overall business travel experience, ensuring smooth transitions and optimized efficiency for all involved.
This market report extensively covers market segmentation by application (marketing, internal meeting, trade show, and product launch), type (travel fare, lodging, dining, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The marketing segment is estimated to witness significant growth during the forecast period. Business travel is a crucial part of the marketing strategies of small and large enterprises operating globally. International marketing, which is also known as global marketing, moreover the marketing of a company on its own overseas market for products and services.
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The marketing segment was the largest segment and was valued at USD 140.84 billion in 2017. The marketing of products in international markets enables companies to expand their customer base and build the reputation of their brands. With the help of a business trip undertaken by employees by the international market, the companies can have a better understanding of the sales strategies and can focus on the target customer base.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC held the highest revenue share of the global business travel market and is expected to hold its leading market position during the forecast period. In terms of quality, companies are making efforts to improve business travel for employees.
Moreover, the business travel market in APAC is becoming autonomous in terms of planning business travel, especially for booking flights and hotels, either from a pre-approved list of flights or without any restrictions. In addition, the market is continuing to grow, supported by favorable fares with minor increases for each fare class and route. Furthermore, the growing middle-class population, strong economy, and limited demand for new inventories are the factors responsible for the controlled hotel priceline.
In today's interconnected world, business travel continues to evolve with trends like bleisure travel and the integration of virtual reality in smart hotels. The digitization of services streamlines transportation and accommodation, catering to the needs of global travel. From business tourism to leisure tourism and medical tourism, diverse segments contribute to tourism expenditure. With a focus on workrelated trips, conferences, and congresses, the sector thrives on business-oriented services like efficient transport and streamlined hotel booking. Emerging technologies like augmented reality, artificial intelligence, and chatbots further enhance the travel experience, connecting travelers to roads and airports worldwide. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing technological advances are driving growth in the market. Technological advancements and solutions, which help travel agents and their clients in a variety of ways, play an important role in the market. such as accessing travel data, comparing reservation options, and booking the most efficient, economical, and comfortable option. Companies are using technologically advanced solutions like personal travel assistants to make business travel reservations efficient by providing a personalized experience to customers.
However, it offers customers an AI technology-enabled personal travel assistant that is always accessible. This market growth can be facilitated by the availability of technologically advanced features, as it saves time for companies to make travel arrangements. Therefore, factors like the growing technological advances will drive the growth of the market.
The growing preference of consumers to book through online travel agencies is a key trend in the market. In travel booking, consumers have started to use Internet portals. It makes it possible for companies to schedule orders in an organized way. Traveling portals and agents are coming up with innovative schemes to promote their online portals further.
For example, take booking.com, one of the prominent online booking portals, provides users with booking options depending on the type of business trip. The website also allows companies to select and shortlist hotels on the basis of available facilities. Therefore, the growing preferences of consumers to book through online travel agencies will significantly contribute to the growth of the market during the forecast period.
The improper management of travel plans is a major challenge in the market. Many corporations have not made travel policies user-friendly, which is leading to confusion among employees, who are often not aware of the inclusions and exclusions of the services in their enterprise plans. This has a negative impact on the market.
In addition, the lack of an updated booking system continues to hamper the management of business plans. Therefore, improper management of travel plans can negatively affect the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market thrives on the intersection of regular tourism and business work, driven by lifestyle changes and tourism promotion initiatives. Infrastructural investments in hotel and transport booking facilities bolster hospitality and infrastructure, enhancing the overall travel experience. However, challenges such as unemployment and SME financing constraints impact the sector, necessitating initiatives like the Udayami Helpline to support small businesses' infrastructures. Technological innovations like chat bots streamline travel retail and facilitate seamless booking experiences. Improved rail network and air routes, including high-speed rail, ensure efficient connectivity for business travelers, while companies implement profit maximization and cost-cutting strategies to optimize corporate profitability in the competitive travel and tourism landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.42% |
Market growth 2023-2027 |
USD 1,535.23 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
23.34 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADTRAV Corp., Airbnb Inc., American Express Global Business Travel GBT, ATG Travel Worldwide BV, BCD Travel Services BV, Booking Holdings Inc., Christopherson Business Travel, CWT Global BV, Direct Travel Inc., Fareportal Inc., FCM Travel Solutions, Flight Centre Travel Group Ltd., JPMorgan Chase and Co., JTBUSA Inc., MakeMyTrip Ltd., Omega World Travel Inc., Travel Leaders Group Holdings LLC, UNIGLOBE Travel International Limited Partnership, Walmart Inc., and WexasA Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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