Global business travel market to Witness Revenue Generation $1.87 Trillion by 2028 | US Alone to Spend Over $357 Billion on Business Travel
Global business travel market size was valued at USD 787.76 billion in 2021 and is expected to reach USD 1876.37 billion by 2028, growing at a CAGR of 13.20% in the forecast period (2022-2028).
Westford, USA, Dec. 01, 2022 (GLOBE NEWSWIRE) — As businesses continue to expand their operations internationally, spending on business travel market is expected to reach new heights. In fact, according to a recent report by the Global Business Travel Association (GBTA), global spending on business travel is forecasted to reach $1.87 trillion by 2028. This growth is being driven by rising corporate profits and expanding international trade, which are increasing opportunities for businesses to travel. The study forecasts that domestic business travel spending will grow at a slightly faster rate than international spending, due to strong economic growth in developing markets such as India and China.
In 2021, the average length of stay in the global business travel market was 3.9 nights, up from 3.2 nights in 2018. This trend is expected to continue, with the average length of stay reaching 4.1 nights in 2023. Interestingly, SkyQuest found that the number of business trips taken by employees has been declining due to stringent government regulations came in place after covid-19 outbreak. In 2020, the average number of trips taken by employees was 1.8, down from 3.6 in 2019. Despite the decline in the number of business trips being taken, SkyQuest’s analysis found that the total amount being spent on business travel is still growing as the lockdown norms are loosen and air travel is restored.
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However, the growth of business travel market spending is not evenly distributed across regions. North America is expected to see the strongest growth, with CAGR of 11.6%, followed by Europe (9.5%), Asia Pacific (14%), Latin America (12.9%) and the Middle East & Africa (8.3%). There are several reasons for this regional variation. Firstly, economic conditions vary widely across regions, with some economies still recovering from the global financial crisis caused by covid-19 pandemic while others are experiencing strong growth.
Secondly, businesses in different regions have different preferences for how they spend their travel budgets – for example, companies in Asia Pacific business travel market are more likely to book air tickets through online channels than those in North America or Europe. Finally, geopolitical risks can impact business travel decisions – for instance, companies may be reluctant to send employees to countries where there is a high risk of terrorist activity or political instability.
US Alone to Spend Over $357 Billion on Business Travel Market
Companies around the globe are spending more on business travel than ever before. In 2021, global spending on business travel reached a record $787 billion. The United States is the largest market for business travel, accounting for more than $122 billion of all the global spending. Europe is the second largest market, followed by Asia-Pacific. However, business travel spending in the United States is expected to reach $357 billion by 2030, up from $120 billion in 2021. The majority of this growth of the business travel market will come from domestic travel, which is projected to grow 12% annually throughout the forecast period. International outbound travel will also contribute to growth, with an annual rate of 10.3%.
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Corporate travel budgets in Europe was valued at $ 153 billion in 2021 and is projected to grow at a healthy CAGR in the years to come. Much of this growth will be driven by increases in international travel, which is projected to grow at a rate of 8.5% annually. The average spend per trip has increased by 5%, and the number of business trips taken has also increased by 5%. This increase in spending across the business travel market is being driven by a number of factors, including an increase in the number of business trips being taken to attend conferences and events, and an increase in the average length of business trips. Businesses are also spending more on accommodation and transport, as well as on meals and entertainment while on business trips. SkyQuest’s analysis shows that businesses in Europe are confident about the future, and are willing to invest in travel to help grow their businesses. This is good news for the economy, as business travel is a major driver of growth and jobs.
SkyQuest Analysis Says Large Number of Businesses are Willing to Spend More on Business Travel Market if the Economic Condition Improves
SkyQuest’s analysis of the global business travel market has found that business travel spending is growing at a faster pace than overall economic growth. Business travel spending is expected to grow at a CAGR of 13.20%. This is higher than the overall economic growth rate of 4.9% in 2022. The main driver of this growth is the rise in international business travel, which is projected to grow at a compound annual rate of 8.7%. This is due to the increasing globalization of businesses and the need for face-to-face meetings in an ever-more connected world.
What’s more, the vast majority of business travelers are happy with their experiences, with 78% saying they are satisfied or very satisfied with their most recent trip. This suggests that the industry is doing a good job of meeting the needs of its customers. However, there are some areas where improvement is needed. In particular, 46% of respondents said that they would like to see more options for sustainable and carbon-neutral travel. This is an area where the industry must continue to evolve in order to meet the needs of its customers.
Corporates in the global business travel market are spending more on travel and entertainment than ever before, with corporate spending on travel and entertainment rising by an average of 9% per year since 2016. The top challenges facing businesses when it comes to managing travel expenses are controlling costs (cited by 45% of respondents), reducing complexity (40%), and improving visibility into spend (37%). – Technology is playing a vital role in helping businesses manage their travel spend, with online booking tools (used by 65% of companies) and spend management solutions (used by 54%) seen as the most effective tools for reducing costs and improving visibility.
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Top Players in Global Business Travel Market
- Carlson Holdings, Inc. (US)
- American Express Company (US)
- Corporate Travel Management (Australia)
- Expedia Group, Inc (US)
- Airbnb (US)
- Flight Centre Travel Group (Australia)
- Priceline Group (US)
- Fareportal (US)
- Wexas Travel (UK)
- BCD Travels (Europe)
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