June 22, 2024
Business Tourism Market

The Rise of Business Tourism Market is in Trends by Corporate Travel Growth

The business tourism market offers a vast array of events and services that cater to the requirements of business travelers who are on the move for meetings, incentives, conferences, and exhibitions. This includes air and accommodation bookings, event organization services, transportation, and other activities. The growing need for face-to-face interactions, establishing new partnerships, and spreading brand visibility is fueling the demand for corporate travel services across industries.

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 Market Share  include 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, and World Travel, Inc. Key players are focusing on expanding their service offerings and global footprint to cater to the growing business travel demands.

The growing demand from industries such as IT, telecom, manufacturing, healthcare and life sciences is driving significant growth in the business tourism market. Factors such as digitalization, globalization of business, and increasing investments in promoting brands through events and tradeshows are fueling corporate travel activities globally.

The market is also witnessing robust expansion across regions such as North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Countries including China, United States, Germany, United Kingdom and India are witnessing rising numbers of business travelers due to growing industrial and entrepreneurial activities. Key players are enhancing their presence across high growth markets to gain more opportunities.

Market Key Trends

One of the key trends gaining traction in the business tourism market is growing preference for online booking tools and platforms. Companies are increasingly using virtual meeting software, travel apps, GDS and other online solutions to efficiently manage travel plans, reduce costs and improve visibility. Adoption of innovative technologies by market players is further simplifying the booking and travel experience for corporate travelers. Additionally, the industry is witnessing rising demand for customized packages and dedicated services for unique business travel needs of companies from different sectors. Players are offering tailored offerings to increase customer stickiness and drive repeat business. Sustainable and responsible tourism is another important trend where companies are focusing on minimizing environmental impact of business travel through various responsible practices.

Porter’s Analysis

Threat of new entrants: Many factors restrict entering business tourism market such as high startup costs, established reputation and brand loyalty of existing players, patents and government regulations that protect incumbents.

Bargaining power of buyers: Business travelers have significant bargaining power due to availability of numerous travel options and service providers competing for their business. However, loyal corporate clients reduce negotation power of buyers.

Bargaining power of suppliers: Major suppliers for business tourism industry are airlines, hotel chains and event organizers who have moderate bargaining power due to availability of alternatives. However, their operational scale provides negotiating leverage.

Threat of new substitutes: Alternatives like video-conferencing and communication technologies pose threat to replace physical travel. However, face-to-face interaction remains imperative for many industries like consulting, finance.

Competitive rivalry: The market is highly fragmented with numerous global and regional players competing on quality of service, technology, reputation and pricing.

Geographical Regions

North America accounts for the largest share in the business tourism market due to presence of major corporate hubs and international event destinations in United States and Canada. Europe is the second largest region driven by large multinational corporations and international associations based in countries like Germany, United Kingdom and France. The Asia Pacific region is expected to witness fastest growth supported by rapidly expanding corporate culture and emerging business hubs in China, India, Singapore and Indonesia.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.