business travel market

Business Travel Market to account for US$ 2.09 Billion by 2027

The global Business Travel market accounted for US$ 1.37 Bn in 2018 and is expected to grow at a CAGR of 4.9% over the forecast period 2019–2027

 

Small and Medium Enterprises (SMEs) play an integral part in the growth of any developing and developed economy worldwide. Business travel expenditures represent a considerable part of any enterprise budget with the increasing need for travel, especially in fast-growing economies such as China and India. In these emerging economies, formal SMEs contribute more than 40% of GDP and almost 60% of total employment, and if informal SMEs are included, then this number could be much higher. With the fast changing technology scenario, growing millennial business travelers, and increasing payment and travel alternatives, this growing trend in Business Travel is anticipated to grow further during the forecast period. Business Travel provides an opportunity for SMEs to build relations with their client through face to face meetings. The revenue growth rate of Business Travel Market companies in developed countries such as the U.S., Canada, Germany and the UK has been surging at a consistent pace and it is expected to outperform various economic segments in these countries. For instance, as per U.S. Federal Reserve report, small businesses are expected to continue positive revenue growth and profitability in the coming few years, with Small Business Optimism Index remained at a high level. The business travel expenses in SMEs are aimed at achieving various business objectives such as improves sales and enhanced business relations. According to a World Bank Group study, in emerging markets there are around 365 to 445 million Micro, Small and Medium Enterprises (MSMEs) with 25 to 30 million formal Small and Medium Enterprises (SMEs), 55 to 70 million formal micro enterprises, and 285-345 million are informal enterprises. The huge numbers of SMEs worldwide and impressive future growth rate present massive opportunities for market players operating in the global Business Travel market.

The Business Travel Market initiative is a strategy basically adopted by the companies to expand their footprint across the world to meet the ever-growing demand of business travelers. The market players present in Business Travel market are mainly focusing towards service enhancements by integrating various technologies such as Artificial Intelligence (AI). By signing partnerships, contracts, joint ventures, and inaugurating new offices across the world, companies are trying to increase their market share and brand presence. Most of the market initiative were observed in Asia Pacific, North America, Europe regions, which have a high density of business travelers. Few on the significant market initiatives from the industry are mentioned below:

Year News Country
2019 OpenTable announced a strategic partnership with Upserve, which is a full-service restaurant management platform. This partnership would allow the flow of guest data and insights in both ways between OpenTable’s GuestCenter operating system and Upserve’s restaurant point-of-sale system North America
2019 Corporate Travel Management announced partnership with Qantas on a new initiative that would enhance customer experience. Asia-Pacific
2019 RoomIt by CWT announced a strategic partnership with SiteMinder, a global guest acquisition platform. This partnership would enable SiteMinder hotel customers to access RoomIt premium business travelers by offering them more choices. North America

 

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