Global Business Travel Growth: A $2.9 Trillion Market by 2029
The global business travel market is witnessing a remarkable resurgence, with countries like the United States, Canada, the United Kingdom, France, Germany, India, Singapore, Australia, and the UAE at the forefront. A recent report from Euromonitor International reveals that this sector is projected to reach an astounding $2.9 trillion by 2029. This growth is primarily driven by robust corporate spending, an increasing demand from small and medium-sized businesses (SMBs), and a rising adoption of managed travel solutions.
The Resurgence of Business Travel
Business travel significantly plummeted during the pandemic, but it is regaining momentum. According to the latest projections, global expenditure on business travel is expected to bounce back to pre-pandemic levels by 2024. Companies have begun to recognize the indispensable value of in-person meetings, networking, and collaboration that only travel can provide.
The realization of such significance in face-to-face interactions is reshaping corporate attitudes. Firms now prioritize personal relationships and teamwork as foundational elements for long-term business success. As conditions normalize, the global market for business travelers is positioned for considerable growth.
Managed Travel vs. Unmanaged Travel
A notable distinction has emerged within the management of business travel expenditures. Currently, only 35% of global spending on travel is arranged through Travel Management Companies (TMCs). The remaining budget is largely untapped by formal systems, posing both a challenge and an opportunity.
The report indicates that 85% of firms anticipate an increase in business travel costs over the next five years. This shift opens up a lucrative avenue for TMCs to capture additional market share by offering more efficient travel management services. As businesses become increasingly aware of the importance of cost containment and optimized trip planning, the demand for managed travel services is projected to rise dramatically.
The Rise of Bleisure Travel
Among the exciting trends reshaping the business travel landscape is the phenomenon of “bleisure” travel—where business trips are extended for leisure purposes. The Euromonitor report highlights a growing trend of business travelers increasingly leveraging their company trips for personal exploration. In the U.S., this segment is set to expand significantly, with bleisure travel expenditure projected to soar 87% from 2024 to 2029.
This trend presents a unique opportunity for companies and travel management providers to rethink their approach to business travel. By allowing employees to blend work with leisure, organizations can enhance job satisfaction and employee productivity while benefiting from a dual-purpose travel experience.
SMBs: The Emerging Powerhouse of Business Travel
Small and Medium-Sized Businesses (SMBs) represent an important growth segment within the business travel market. Operating with more restricted budgets, SMBs are expected to drive innovation and development in the realm of managed travel solutions. They constituted 26.1% of the business travel market in 2024, and this segment is anticipated to grow at a 7.1% CAGR from 2024 to 2029—making it the fastest-growing sector.
Moreover, SMB employees tend to travel more frequently, confirming the importance of catering to this demographic. For travel management providers, this represents a lucrative opportunity to capture additional market share by delivering tailored and affordable travel solutions specifically designed for smaller organizations.
Navigating Unrecorded Travel Spending
Interestingly, even with increased adoption of managed travel platforms, a significant proportion of travel expenditure occurs outside of these managed systems. Up to 10% of business travel is arranged outside TMC platforms, indicating an area ripe for optimization.
TMCs are well-positioned to address this issue by offering integrated platforms that can centralize all aspects of business travel—from booking flights and hotels to managing expenses. By identifying and managing these unrecorded travel expenses, companies can optimize their travel policies, gain deeper insights into spending patterns, and enhance overall efficiency.
Future Prospects for Business Travel
The analysis provided by Euromonitor International paints an optimistic picture for the future of business travel. As corporate travel rebounds and bleisure becomes more mainstream, the market is set to expand. The adoption of managed travel solutions is anticipated to grow as businesses seek to streamline operations, control costs, and cope with rising travel expenditures.
In a post-pandemic world, key factors like advanced technology adoption, introducing comprehensive managed travel systems, and prioritizing flexibility for both business and leisure will shape the landscape. By embracing these shifts, companies can optimize their business travel experiences, improving satisfaction for employees while driving organizational success.
The apparent growth in global business travel, marked by adaptability in travel solutions and changing employee expectations, signals an evolving industry that aims to meet the demands of modern corporate life. The emphasis on strategic planning, cost-effective travel management, and employee-centric policies will define the journey ahead, presenting a wealth of opportunities in this rebounding sector.
