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Business Travel - Global Market Trajectory & Analytics

  • ID: 5029807
  • Report
  • May 2021
  • Region: Global
  • 464 pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • ADTRAV Corporation
  • Airbnb, Inc.
  • BCD Travel
  • Booking Holdings Inc.
  • CWT
  • Egencia LLC
  • MORE

Global Business Travel Market to Reach $791.9 Billion by 2026


Business travel can be described as the domestic or international travel undertaken by employees to attend various business-related activities including meetings, product launches, trade shows and marketing of companies to further improve business prospects. Comprising work, entertainment, accommodation and transportation, business travel is among the major contributors to the global economy. Employees of multinational organizations often travel to destinations in various countries for business and marketing purposes. There are a variety of agencies and travel companies in the market addressing the needs of the business travel industry, which compete based on safety measures, service portfolios, government licensing and pricing. Growth in business travel has provided organizations the option of managing travel requirements of their employees using travel programs, services and online self-booking tools offered by travel management corporations. Amid the COVID-19 crisis, the global market for Business Travel estimated at US$674.5 Billion in the year 2020, is projected to reach a revised size of US$791.9 Billion by 2026, growing at a CAGR of 3% over the analysis period. Food & Lodging, one of the segments analyzed in the report, is projected to record a 3.7% CAGR and reach US$446.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Recreation segment is readjusted to a revised 2.6% CAGR for the next 7-year period.

The U.S. Market is Estimated at $231.4 Billion in 2021, While China is Forecast to Reach $48.8 Billion by 2026


The Business Travel market in the U.S. is estimated at US$231.4 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$48.8 Billion by the year 2026 trailing a CAGR of 5.1% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.2% and 3.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.4% CAGR.

Business travel market worldwide is being fuelled by factors such as globalization of business operations, rising adoption of advanced technologies such as artificial intelligence, Internet of Things (IoT), and rising Internet penetration for enabling easy travel and bookings. Growth of the business travel industry is significantly influenced by the level of investments in public and private travel and tourism industry. This is because considerable investments are required to build the required infrastructure and facilities for expanding capacity, providing improved services and maintaining existing infrastructure. Global market for business travel, which is currently witnessing its worst phase due to the COVID-19 outbreak, has been over the years driven by initiatives to develop meetings, incentive, conferences and events (MICE) and small and medium sized enterprises (SME). The global business travel market is being significantly impacted by the advent of advanced technology solutions that help agents and their customers to book the most comfortable, economical and efficient option. Artificial intelligence (AI) in this regard has evolved as a latest technology for helping automate the process, and eliminating the need for physically attending various meetings or events, which is critical amidst the current pandemic. Though advanced technologies such as videoconferencing can prove a threat, increase in infrastructure investment and growth in travel retail market are expected to support the business travel industry.

Transportation Segment to Reach $122.7 Billion by 2026


In the global Transportation segment, USA, Canada, Japan, China and Europe will drive the 1.3% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$93.2 Billion in the year 2020 will reach a projected size of US$101.9 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$15.1 Billion by the year 2026, while Latin America will expand at a 1.8% CAGR through the analysis period.

Select Competitors (Total 70 Featured) -

  • ADTRAV Corporation
  • Airbnb, Inc.
  • American Express Global Business Travel
  • BCD Travel
  • Booking Holdings Inc.
  • CWT
  • Egencia LLC
  • Fareportal, Inc.
  • Flight Centre Travel Group
  • FROSCH International Travel, Inc.
  • Ovation Travel Group
  • Travel Leaders Group, LLC
  • Wexas Travel
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • ADTRAV Corporation
  • Airbnb, Inc.
  • BCD Travel
  • Booking Holdings Inc.
  • CWT
  • Egencia LLC
  • MORE
I. METHODOLOGY

II. EXECUTIVE SUMMARY
  • Influencer Market Insights
  • World Market Trajectories
  • Impact of COVID-19 Outbreak and Looming Global Recession
  • Exhibit 1: COVID-19 Impact on Travel & Tourism Industry: Growth Rate (%) of Industry Revenues in Select Countries for 2020 Vs 2019
  • Digitalization Augurs Well for the Tourism Industry
  • Impact of COVID-19 on Business Travel in Life Sciences Sector
  • Pandemic to Transform Future Trends in the Business Travel Industry
  • Business Travel Evolves into Multi-Faceted Endeavor
  • Global Market Prospects & Outlook
  • Exhibit 2: Major Purposes of Business Trips
  • Competition
  • Startups Disrupt the Business Travel Market
  • World Brands
  • Recent Market Activity
  • Trends in Travel & Tourism: An Indication of Dynamics in Business Travel Market
  • Exhibit 3: COVID-19 Impact on Tourism Industry: % Change in International Tourist Arrivals by Region for 2019 and Q1 2020
  • Preference for Communications Technologies & Video Conferencing Amidst COVID-19 Outbreak Over Travel Affects Business Travel
  • Exhibit 4: Global Downloads (Million) of Select Video Chat Apps for iOS and Android for Jan-2020 to Mar-2020
  • Exhibit 5: Average Growth (in %) in Video Meetings by Meeting Size for Feb 2020 Vs May 2020
  • Web Conferencing Emerges as an Apt Alternative to Business Travel
  • Mixing Recreation with Business: The New Mantra in Business Travel
  • Exhibit 6: Bleisure as % of Total Business Trips by Select Countries: 2019
  • Exhibit 7: Average Number of Bleisure Trips Per Year by Select Countries for 2019
  • Exhibit 8: Original Purpose of Bleisure Travel: % of Trips Converted to Bleisure Trips by Purpose of Original Trip for 2019
  • Exhibit 9: Industries with Most Bleisure Travelers: % of Bleisure Travelers by Industry
  • Exhibit 10: Major Reasons for Choosing a Bleisure Destination: % of Bleisure Travelers Citing a Factor as a Reason for Preferring a Destination among US Bleisure Travelers
  • Pandemic Accelerates Event Planning Industry’s Transition towards Virtual Platforms, Affects Business Travels
  • Major Events Cancelled or Deferred or Conducted Virtually due to COVID-19
  • Exhibit 11: COVID-19 Effect on Global Event Activities: Estimated Percentage Change in Event Revenues for 1H 2020 over 1H 2019
  • Trade Volumes and Trade Wars Closely Correlated to Spending on Business Travel
  • Exhibit 12: Month-on-Month Growth in Global Trade: Jan 2019-April2020
  • NoTable Trends in the Business Travel Industry
  • New Services Emerge as Competitors to Travel Management Companies
  • Using Business Travel to Enhance Employee Satisfaction
  • Bleisure Emerges as a Popular Business Travel Trend
  • Focus on Enhancing Customer Service
  • Rising Importance of Personalized Travel
  • Sustainability Emerges as a NoTable Trend in Business Travel
  • Technological Advancements Augur Well for the Market
  • Rising Importance of Artificial and Machine Learning in Business Travel
  • Mobile Devices Become Integral to Business Travel Industry
  • Exhibit 13: Smartphone Penetration Rate as Share of Total Population: 2016-2021E
  • Downturn in Business Travel Dents Airline Revenues
  • Exhibit 14: COVID-19 Pandemic Dents Airline Revenues: Commercial Airline Revenue Growth (in %) for 2010-2020E
  • Exhibit 15: Air Travel a Significant Component of Business Travel Spending: Percentage Breakdown of Average Corporate Trip Budget by Segment for 2019
  • Exhibit 16: Major Concerns of Business Travelers: % of Business Travelers Citing the Concern Impeding Corporate Travel
  • Growth of SMEs Bodes Well for the Busines Travel Industry
  • Airport Retailers Target Business Travelers
  • Exhibit 17: Global Airport Retail Market Size (in US$ Billion) for 2019, 2022 & 2024
  • Digitalization of Travel Payments & Guest Data Supports Business Travel Market
  • Challenges Facing Business Travel Market
  • Data Breaches and Fraud Impact Business Travel
III. MARKET ANALYSIS
  • US Travel & Tourism Industry Hit Hard by the COVID-19 Pandemic
  • Exhibit 18: US Travel Industry: Percentage Breakdown of Spending by Business Travel and Leisure Spending for 2019
  • COVID-19 Impact on the Chinese Travel Industry
  • COVID-19 Crisis Impacts European Travel Industry
  • Indian Travel & Tourism Market Reels Under the Impact of Coronavirus Outbreak
  • Despite the Temporary Fall in Business Travel, Long term Prospects Remain Highly Promising
IV. COMPETITION
  • Total Companies Profiled: 70
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • ADTRAV Corporation
  • Airbnb, Inc.
  • American Express Global Business Travel
  • BCD Travel
  • Booking Holdings Inc.
  • CWT
  • Egencia LLC
  • Fareportal, Inc.
  • Flight Centre Travel Group
  • FROSCH International Travel, Inc.
  • Ovation Travel Group
  • Travel Leaders Group, LLC
  • Wexas Travel
Note: Product cover images may vary from those shown
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