Business tourism, also known as corporate travel, refers to travel undertaken for business or commercial purposes. It includes trips taken for attending conferences, exhibitions, meetings, trade shows, and other events related to business. Business Tourism Market Size provides an opportunity for organizations to network, build relations, close deals and generate revenue. The growing globalization has led to surge in cross-border businesses, thus fueling the demand for business travel.
The Global Business Tourism Market is estimated to be valued at US$ 900.58 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Business Tourism are Adelman Travel Group, Wexas Travel, American Express Global Business Travel, BCD Travel, Carlson Wagonlit Travel (CWT), Expedia Group, Flight Centre Travel Group, Hogg Robinson Group (HRG), HRG North America, Corporate Travel Management (CTM), Egencia, FCM Travel Solutions, HRG Nordic, Omega World Travel, Sabre Corporation, Thomas Cook Group, Travel Leaders Group, Travel and Transport, TUI Group, World Travel, Inc. These players are focusing on expanding their global footprint through mergers and acquisitions.
The key opportunities in the market include large untapped potential across developing economies and growing adoption of latest technologies like artificial intelligence and block chain for seamless travel experience. The market players are eyeing high growth regions like Asia Pacific and Middle East for expansion of their business tourism vertical.
Globalization has led several multinational companies to set up offices and facilities around the world. This has augmented the need for frequent travel among organizations to manage global operations, meet clients and partners. North America dominates the business tourism market currently owing to high density of multinational corporations.
Market Drivers
The key driver driving the business tourism market is the growing globalization. Rising cross-border collaborations and partnerships between organizations have boosted travel for attending seminars, product launches, negotiations and after-sales services. Other factors include rapid urbanization, rising disposable incomes, improving global economic conditions and ease of travel due to robust aviation industry infrastructure. Developing markets offer huge scope for business travel and MICE tourism.
PEST Analysis
Political: The business tourism market is influenced by government policies and regulations regarding travel, tourism, and business activities. Changes in visa and travel restrictions can impact the flow of business travelers across borders.
Economic: Economic growth and business/trade opportunities influences demand for business travel. During economic booms, businesses expand globally and require more travel for meetings, tradeshows, and client visits which drives the business tourism market.
Social: Demographics and lifestyle changes impact business travel patterns. An increasingly digital and virtual workforce requires less travel. However, the need for in-person meetings and networking continues to support business travel for developing relationships and closing deals.
Technological: Advanced technologies enable virtual meetings and conferencing, reducing some requirements for travel. However, technologies have also made travel and accommodations easier to book online, and augmented reality/virtual reality could merge physical and virtual experiences in business events in the future.
Geographical regions with high concentration in terms of value for the business tourism market include North America, Western Europe, Asia Pacific, China, and Gulf Cooperation Council (GCC) countries. North America and Western Europe currently account for the largest shares of the business tourism market.
The fastest growing region for the business tourism market is expected to be Asia Pacific due to rising business opportunities and investments in countries like China, India, and Southeast Asian nations. Growth rates in Asia Pacific are projected above the global CAGR of 9.3% during the forecast period from 2024 to 2031 as emerging markets continue to industrialize and integrate further into global business networks through travel and trade. Increased adoption of technologies may further support growth.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.