Travel Management Software Market - Forecasts from 2024 to 2029

The global travel management software market is projected to grow at a CAGR of 15.57% to reach US$6.951 billion in 2029 from US$2.525 billion in 2022.

Travel-management software enables people and companies to track and document the expenses incurred by workers and business travellers. It allows companies and organizations to create a budget-friendly, flexible vacation or tour design. Additionally, it facilitates the approval of employee travel expenses and the sending of quotes for processing, submission, and reimbursement of such costs from the company. As a result, the time-consuming processes of documenting expenses, supplying receipts as proof, and requesting refunds from the accounts department are no longer necessary. The company can immediately track actions and costs by documenting travels' minute details in the travel management software. Growing demand from enterprises, booming travelling activities are driving the market growth.

Market Drivers

• The high adoption by enterprises is accelerating the adoption of travel management software.

Complicated and multi-strategized organizational frameworks and the growing use of mobile phones have brought the need for travel and cost management software to the market. Every business wants to cut costs, and travel management software helps users organize their work trips more comfortably and affordably. However, employees must also carry all bills and receipts to verify the costs they incurred, and only after the records have been verified can they request reimbursement. Companies are utilizing travel management software to do away with this lengthy process. For example, Optical Character Recognition (OCR) is a machine learning-based technology developed by Concur Technologies Inc. that pulls data from a receipt image and translates it into text. Additionally, it has integrated AI-powered chatbots into the program that can accept or deny reimbursements by corporate policy. Moreover, the travel management software market's expansion is driven by the rising popularity of tablet and mobile devices.

North American region is expected to hold the significant market share

By region, the travel management software market is dominated by North America. The development of mobile booking technologies and travel apps, together with the rising demand for travel management solutions across businesses, is causing the regional market to grow. Additionally, the region's market shares are boosted by numerous significant firms and the widespread adoption of travel management software solutions in the area. The market for travel and expense management software in North America is also anticipated to be driven by the adoption of machine learning and predictive analytics. Further, the presence of small and medium-sized businesses in North America's travel and expense management software contributes to expanding the market in that area. Additionally, the increasing travel sector in European countries, technological developments, and rising demand for online booking formats all contribute to higher market revenues. The emergence and adoption of numerous futuristic travel management platforms and the spread of smart connected gadgets and connectivity technologies further contribute to the growth of the Asia Pacific industry.

Market Challenge

• High risk for data security & cybercrimes will restrain the market growth.

Travel and expense management software contain employee names, mail IDs, company credit card information, business-related actions, transaction details, and other financial histories. Because businesses are more careful when choosing a travel and expense management software solution, it becomes a critical issue for firms. Most private and payment data breaches originate from third-party vendors, such as hotel reservations, airline tickets, or other retailers. Many travel departments and providers are using multiple payment security applications. Applications for defining payment security policies, educating passengers about security policies, assessing data security standards, and responding to online fraud losses are among the security regulations covered by these programs. As a result, achieving total security becomes quite challenging, negatively affecting growth.

Key Developments:

• In October 2023: Travel & expense management solution providers Navan announced the launch of its jointly branded travel and expense system for Citi Commercial Bank cardholders. The solution leverages Navan Connect's card-link technology and will be available for U.S based CCB cardholders.
• In February 2022, Coupa Software introduced Coupa Travel and Expense, a completely integrated system that optimizes real-time travel spending and enhances the traveler experience. However, siloed tools and low user involvement make it difficult for enterprises to gain insight and control. The brand-new T&E solution is the most recent in Coupa's first-to-market Business Spend Management advancements. Three essential elements make this innovative solution unique from everything available in the sector, such as the User-friendly environment, T&E management, and AI-driven insights.
• In April 2022, an expanded partnership between Expedia Group and Qtech Software, a travel technology software developer, was announced to give travel agencies worldwide access to Expedia Group's travel inventory using Qtech's leading technology platform. Because of this partnership, all sizes of travel agencies have easier access to high-end hotel content and technology via the OTRAMS GO platform, which helps them increase sales, expand their operations, and boost efficiency throughout the travel industry. In addition, by combining OTRAMS GO with Rapid 3 API and extending their partnership, they can assist more businesses to join the global travel ecosystem, giving people worldwide additional options and access to travel.

Segmentation:

By Deployment

• Cloud
• On-Premises

By Enterprise Size

• Small
• Medium
• Large

By Industry Vertical

• Tourism and Hospitality
• Healthcare
• BFSI
• Transport
• Manufacturing
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Thailand
• Indonesia
• Others