Future of Domestic Business Travel Looks More Optimistic than International | Globaldata Plc
June 23, 2022
The business travel market size was valued at $164.7 billion in 2021
/EIN News/ -- LONDON, June 23, 2022 (GLOBE NEWSWIRE) -- 2021 has proven to be a challenging year for international business travel. The sector has seen a drop in trips YoY from 2020. Early in the pandemic, many experts had predicted that international business trips would start to recover in 2021. However, business travel has proven to be a much more complex sector than leisure travel during this time. Leisure travel detractors often center around economic, environmental, and safety issues. However, business travel encompasses not only all these issues but also the added layers of corporate responsibility, budgeting, and the evolution of hybrid working. These factors have significantly slowed international business travel’s recovery in particular. As a result, it is not expected to recover until at least 2026. Domestic business travel, on the other hand, has fared slightly better. Many domestic travel restrictions were lifted in 2021, and there is a growing positive sentiment from workers about returning to the office.
The Business Travel Market Research Report 2022 offered by GlobalData Plc provides an analysis of the business travel industry including insights into business travelers, market trends influenced by COVID-19, consumer trends, destinations, sector deals, challenges and opportunities.
Business Travel Market Segmentation by Passenger Flows
- International Business Travel
- Domestic Business Travel
As offices have moved to a more hybrid style of working, by mixing homeworking with office work, more companies have been open to the idea of domestic business travel. Due to the lack of travel restrictions and the need for testing, domestic travel is much less complex. The perceived risk factors are also significantly lower, making domestic travel more appealing to the company's travel managers.
Business Travel Market Trends
- Corporate Travel Budgets
- Sentiment towards COVID-19
- Demand for Communication Regarding COVID-19 Protocols
- Sentiment to Business Travel
- ESG – Environmental, Social, and Governance
Travel management companies (TMCs) will be under significant pressure to ensure business travelers receive the most up-to-date information regarding COVID-19. This is particularly relevant for the travel industry as restrictions can change daily on a global scale. As TMCs often act as an aggregator between the traveler and the airline, hotel or ancillary service, they will need to be up to speed with the varying regulations provided by each company and destination. Clear communication and regular updates to business travelers will be essential in ensuring the safety of each individual traveler. Hotels, transportation companies, and other ancillary services will also need to provide clear and consistent information. Hotels have already started to move towards the current sentiment from many travelers.
Key Themes Impacting the Business Travel Market
- Big Data
- Online Travel
- Travel Apps
- Machine Learning
While online travel has been around since the mid-1990s, TMC or business travel agencies have struggled to adapt. The expense of building a bespoke online travel platform that is created specifically for B2B transactions was considered expensive to do. It also requires substantial skill and expertise to build. However, with the development of tech companies and a widening service portfolio from GDS providers, it is now easier for TMCs to create an online travel platform.
Leading Companies in the Business Travel Market
- American Express Travel
- Direct Travel
- Expedia Group
- BCD Travel
- Internova Travel Group
- AMEX Global Business Travel
- Booking Holdings
- Flight Centre Group
Business Travel Market Overview
|Market Size 2021||$164.7 billion|
|Key Segments||International Business Travel and Domestic Business Travel|
|Key Trends||Corporate Travel Budgets, Sentiment towards COVID-19, Demand for Communication Regarding COVID-19 Protocols, Sentiment to Business Travel, and ESG|
|Key Themes||Big Data, Online Travel, Travel Apps, Machine Learning, Geopolitics, and Others|
|Leading Companies||American Express Travel, Direct Travel, Expedia Group, BCD Travel, Internova Travel Group, AMEX Global Business Travel, Booking Holdings, CWT, Fareportal, and Flight Centre Group|
Business Travel Market Report Scope
This report provides an analysis of the business travel sector including insights into business travelers, market trends influenced by COVID-19, consumer trends, sector deals, challenges, and opportunities.
Reasons to Buy
- Gain insight into business travel's leading players.
- Understand how they have adapted to the threat of COVID-19
- Understand the key business travelers that companies can look to attract
- Gain a detailed understanding of the key trends, issues, and challenges facing business travel companies (TMCs)
What was the business travel market size in 2021?
The business travel market size was valued at $164.7 billion in 2021.
What are the key segments in the business travel market?
The key segments in the business travel market are international business travel and domestic business travel.
What are the key business travel market trends?
The key trends in the business travel market are corporate travel budgets, sentiment toward COVID-19, demand for communication regarding COVID-19 protocols, sentiment toward business travel, and ESG.
What are the key themes impacting the business travel market?
Some of the key themes impacting the business travel market are big data, online travel, travel apps, machine learning, and geopolitics.
Which are the leading companies in the business travel market?
The leading companies in the business travel market are American Express Travel, Direct Travel, Expedia Group, BCD Travel, Internova Travel Group, AMEX Global Business Travel, Booking Holdings, CWT, Fareportal, and Flight Centre Group.
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