PUBLISHER: The Business Research Company | PRODUCT CODE: 1596066
PUBLISHER: The Business Research Company | PRODUCT CODE: 1596066
Business travel refers to the movement of individuals for work-related purposes, involving travel away from the usual place of work. This form of travel is undertaken by employees, executives and professionals who need to attend meetings, conferences, trade shows or other business activities and may also include individuals working in sales, marketing or consulting.
The business travel market consists of sales, by entities (organizations, sole traders and partnerships), of business travel services that involve the use of a variety of transportation methods such as airplanes, trains and rental cars, with hotels, serviced apartments and other accommodations providing temporary housing for the duration of the trip. Business travel offers companies the opportunity to build stronger relationships with clients through face-to-face meetings, which are often more effective than virtual communication. It allows for the direct negotiation of deals, fostering trust and better collaboration between teams or business partners.
The global business travel market was valued at $595,757.94 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 6.0%.
Expansion Of Multinational Corporations
Expansion of multinational corporations propelled the growth of the business travel market in the historic period. The expansion of multinational corporations (MNCs) increased the frequency of international business activities, driving up demand for travel services. As MNCs set up regional offices and engaged in global trade and conferences, there was a growing need for flights, accommodations and ground transportation. This surge in travel requirements also led to heightened demand for travel management solutions to support complex international operations and high-stakes meetings. For instance, according to Bain & Company, a US-based management consulting company, China accounted for about 15% of global revenue for 200 major multinational corporations in 2022 from Japan, Europe and the US. Additionally, in November 2023, according to statistics released by the Bureau of Economic Analysis (BEA), a US-based government agency that provides official macroeconomic and industry statistics, worldwide employment by U.S. multinational enterprises (MNEs) rose 1.1% to 43.3 million workers in 2021, up from 42.9 million in 2020. U.S. parent companies employed 68.1% of this workforce, an increase from 67.4% in 2020. Therefore, expansion of multinational corporations supported the growth of the business travel market.
Launch Of Premium Travel Products To Address Comfort And Convenience On Busy Routes
Major companies are launching premium travel products to improve comfort on busy routes. These offerings feature advanced seating with wider seats, more legroom and better recline options. Cabins include two-by-two layouts, device holders, power outlets and USB (Universal Serial Bus) ports for convenience. Designed for business travelers, these solutions enhance comfort during frequent trips and aim to attract more passengers on high-traffic routes. For instance, in August 2024, InterGlobe Aviation Limited (indigo), an India-based low-cost airline company, announced the launch of IndiGo Stretch, a new business travel product aimed at enhancing comfort on busy routes like Delhi-Mumbai. Launching in mid-November 2024 at an introductory price of INR 18,018 ($214.55), the IndiGo Stretch offers a coupe-style, two-seat wide bay design. The cabin features 12 specially designed seats arranged in a two-by-two layout, offering a 38-inch pitch and 21.3-inch width. Key seat features include a six-way adjustable headrest, 5-inch recline, electronic device holder, 60 watts (W) universal Serial Bus (USB) Type C power supply and a universal power outlet.
The global business travel market is high fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 2.5% of the total market in 2023.
Business Travel Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global business travel market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for business travel? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The business travel market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider business travel market; and compares it with other markets.