Global Corporate Travel Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Corporate Travel Market is expected to record a CAGR of 13.1% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 251.1 billion. By 2032, the valuation is anticipated to reach USD 330.2 billion.

The corporate travel market refers to the segment of the travel industry that focuses on providing travel management services to corporate clients. It includes services such as booking management, expense tracking, policy compliance, and travel consultation.

The corporate travel market operates in a B2B (business-to-business) environment, serving organizations of various sizes and industries. It involves managing complex travel itineraries, negotiating corporate rates with suppliers, ensuring compliance with travel policies, and providing reporting and analytics to track travel expenses. Key trends in the corporate travel market include the integration of technology, such as online booking platforms and mobile apps, to streamline the booking and management process.

Sustainability is another important trend, with a focus on eco-friendly travel options and carbon offset programs. The market also sees trends towards personalized experiences, leveraging data analytics to provide tailored recommendations and the rise of remote work and virtual meetings impacting travel patterns.

Corporate Travel Market – Significant Growth Factors

The Corporate Travel Market presents significant growth opportunities due to several factors:

• Economic Growth: Robust economic growth drives business expansion and increases the demand for corporate travel. As companies expand their operations, they engage in activities such as attending industry conferences, conducting client meetings, and exploring new markets. This leads to an uptick in business travel, creating opportunities for the corporate travel market to cater to the travel needs of these expanding businesses.

• Globalization: The process of globalization has transformed the business landscape, with companies seeking to establish a global presence. This involves expanding into new markets, establishing partnerships with international entities, and managing operations across multiple locations. Such global business activities necessitate frequent travel for executives, sales teams, and project managers, contributing to the growth of the corporate travel market.

• Technological Advancements: The rapid advancements in technology have revolutionized the way corporate travel is managed. Online booking platforms and mobile applications have made it easier for travelers to plan and book their trips, enhancing convenience and efficiency. Additionally, artificial intelligence and data analytics have enabled personalized travel experiences, cost optimization through predictive analytics, and streamlined expense management. These technological advancements have played a significant role in driving market growth by improving the overall travel experience for corporate travelers.

• Business Expansion: When companies expand into new markets or industries, there is a need for travel to explore opportunities, establish networks, and build relationships. Mergers and acquisitions, joint ventures, and market entry strategies all require extensive business travel. The corporate travel market caters to the unique travel requirements of these expanding businesses, providing them with comprehensive travel management solutions and services.

• Increasing Focus on Work-Life Balance: Organizations today place a greater emphasis on employee well-being and work-life balance. As part of employee engagement and retention strategies, companies organize incentive travel programs, team-building retreats, and corporate wellness initiatives. These initiatives often involve travel, creating a demand for travel management services that cater to the unique needs of these programs. The corporate travel market capitalizes on this trend by providing tailored services that promote work-life balance and enhance employee experiences.

Corporate Travel Market – Mergers and Acquisitions

The Corporate Travel Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Corporate Travel Market include:

• American Express Global Business Travel (GBT) acquired Hogg Robinson Group (HRG) in 2018, solidifying their positions as major players in the corporate travel market. The acquisition brought together two industry leaders, combining their expertise, client portfolios, and global reach. It resulted in an expanded service offering, enhanced technology platforms, and increased efficiencies, allowing the merged entity to provide comprehensive travel management solutions to a wider range of corporate clients worldwide.

• In 2019, Flight Centre Travel Group made a significant move by acquiring Corporate Traveler, a leading corporate travel management company. This strategic acquisition bolstered Flight Centre’s presence in the corporate travel segment, expanding its client base and service offerings. The collaboration enabled both companies to leverage their respective strengths, including Corporate Traveler’s expertise in managing small to medium-sized business travel and Flight Centre’s extensive global network, resulting in an enhanced value proposition for corporate clients.

• CWT (formerly Carlson Wagonlit Travel) announced a strategic partnership with SAP Concur in 2018. The partnership aimed to integrate CWT’s travel booking and management solutions with SAP Concur’s expense management platform. This collaboration provided corporate clients with a seamless end-to-end travel and expense management experience. The integration of these two industry-leading platforms enabled streamlined processes, improved data accuracy, and enhanced policy compliance, ultimately simplifying and optimizing the corporate travel experience for clients.

• Expedia Group made a significant move in 2020 by acquiring Egencia, the corporate travel division of Expedia. This acquisition further strengthened Expedia Group’s position in the corporate travel market. It allowed for deeper integration between Expedia’s consumer travel offerings and Egencia’s corporate travel solutions, resulting in an expanded range of services and a more comprehensive travel management platform. This synergy enabled corporate clients to access a wide range of travel options and services while benefiting from enhanced technology and personalized travel experiences.

• BCD Travel, a prominent global travel management company, announced a partnership with TripSource in 2021. The collaboration aimed to integrate BCD Travel’s expertise in corporate travel management with TripSource’s advanced mobile technology platform. This strategic partnership empowered corporate travelers with a unified, user-friendly mobile application for travel booking, itinerary management, real-time updates, and policy compliance. The integration of these platforms enhanced the traveler experience, increased efficiency, and provided greater visibility and control for corporate clients and their travel managers.

• In 2019, FCM Travel Solutions, a leading global travel management company, formed a strategic partnership with dnata, one of the world’s largest air services providers. This partnership allowed FCM to leverage Dnata’s extensive global network and aviation expertise. The collaboration enhanced FCM’s service offerings, providing clients with access to a wider range of destinations, airlines, and travel options. The partnership also facilitated improved customer service and support, as well as strengthened supplier relationships, allowing FCM to offer more competitive rates and enhanced travel experiences for corporate clients.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Corporate Travel Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Corporate Travel Market – Significant Threats

The Corporate Travel Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• COVID-19 Pandemic: The COVID-19 pandemic has had a profound impact on the corporate travel industry. Travel restrictions, lockdowns, and health concerns have led to a significant decline in business travel. Companies have shifted to remote work and virtual meetings, reducing the need for traditional corporate travel. The ongoing uncertainty surrounding the pandemic and its long-term effects pose a threat to the recovery and growth of the corporate travel market.

• Economic Downturns: Economic downturns, such as recessions or financial crises, can adversely affect the corporate travel market. During challenging economic times, businesses tend to cut costs, including travel expenses. Reduced corporate spending and budget constraints can lead to a decline in demand for corporate travel services, impacting the revenue and profitability of travel management companies.

• Geopolitical and Security Issues: Geopolitical tensions, security concerns, and unexpected events like terrorist attacks, natural disasters, or political instability can disrupt travel plans and impact corporate travel. Travel advisories, flight cancellations, and heightened security measures can deter companies from conducting business trips, resulting in a decline in demand for corporate travel services in affected regions.

• Advancements in Virtual Communication: The advancements in virtual communication technologies have provided viable alternatives to face-to-face meetings. Video conferencing, webinars, and online collaboration tools have improved remote communication capabilities, reducing the necessity for extensive business travel. As companies embrace these virtual alternatives, the demand for traditional corporate travel may decline, posing a threat to the market’s growth and profitability.

Report Scope

Category-Wise Insights

By Service:

• Transportation: In the corporate travel market, transportation services encompass air travel, ground transportation (such as car rentals and chauffeur services), and rail or ferry options. Trends include the rise of sustainable transportation options, increased emphasis on traveler safety and comfort, and the integration of technology for seamless booking and tracking.

• Food & Lodging: Food and lodging services in the corporate travel market refer to accommodations (hotels, serviced apartments) and dining options. Trends include the growing demand for unique and personalized experiences, increased focus on health and wellness offerings, and the integration of technology for contactless services, such as mobile check-in and digital menus.

• Recreation: Recreation services cater to the leisure and entertainment needs of corporate travelers, including activities like sightseeing, cultural experiences, and team-building events. Trends include the rise of experiential travel, the customization of leisure activities based on traveler preferences, and the integration of technology for convenient booking and access to local attractions.

By Traveller

• Group Travel: Group travel involves traveling with a prearranged set of people, such as colleagues, friends, or organized tour groups. In the market, there is a growing trend of group travel due to its benefits, including shared experiences, cost savings through group discounts, and the chance for social interactions and networking.

• Solo Travel: Solo travel refers to individuals traveling alone, without companions. Solo travel has become increasingly popular in recent years as people seek independence, self-discovery, and personal growth. Market trends show a rising demand for solo travel experiences tailored to the unique needs and preferences of solo travelers, including safety measures, community-based accommodations, and activities suitable for individuals.

Corporate Travel Market – Regional Analysis

The Corporate Travel Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: In North America, a significant trend in the corporate travel market is the increasing focus on sustainability and responsible travel. Companies are adopting eco-friendly practices, promoting carbon offset programs, and opting for sustainable accommodation and transportation options. Dominating market players in this region include American Express Global Business Travel, Expedia Group, and BCD Travel.

• Europe: In Europe, the corporate travel market is witnessing a trend towards personalized and curated travel experiences. Companies are leveraging data analytics and artificial intelligence to provide tailored recommendations, personalized itineraries, and enhanced customer service. Key market players in Europe include CWT (formerly Carlson Wagonlit Travel), Flight Centre Travel Group, and Egencia (an Expedia Group company).

• Asia-Pacific: In the Asia-Pacific region, one of the notable trends in the corporate travel market is the rapid adoption of mobile technology and digital solutions. Mobile booking platforms, virtual payment systems, and real-time travel updates are gaining popularity, catering to tech-savvy corporate travelers. Dominating market players in this region include FCM Travel Solutions, Corporate Travel Management, and Travel Leaders Group.

• LAMEA: In the LAMEA (Latin America, Middle East, and Africa) region, a key trend in the corporate travel market is the growing emphasis on business travel safety and risk management. Companies are prioritizing traveler safety, implementing robust security protocols, and partnering with travel risk management providers. Major market players in the LAMEA region include BCD Travel, Corporate Travel Management, and CWT (formerly Carlson Wagonlit Travel).

Competitive Landscape – Corporate Travel Market

The Corporate Travel Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• American Express Global Business Travel
• CWT (formerly Carlson Wagonlit Travel)
• BCD Travel
• Expedia Group
• Booking Holdings Inc. (parent company of Booking.com)
• Egencia (a division of Expedia Group)
• Flight Centre Travel Group
• HRG (Hogg Robinson Group)
• FCM Travel Solutions
• Corporate Travel Management
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships. For example, In 2021, a collaboration between SAP Concur and American Express Global Business Travel (GBT). This partnership aimed to integrate GBT’s travel booking and management solutions with SAP Concur’s expense management platform, providing a seamless end-to-end travel and expense management experience.

Several new players in the corporate travel market have adopted innovation and development to enter the industry. These emerging players focus on leveraging advanced technologies, introducing disruptive business models, and providing unique value propositions to differentiate themselves. Some notable new players include TripActions, Lola.com, and TravelPerk.

However, the market is predominantly dominated by key players who have established a strong foothold. These dominant players, such as American Express Global Business Travel, Expedia Group, and BCD Travel, have achieved market dominance through a combination of factors. They possess extensive industry experience, robust global networks, strong supplier relationships, and comprehensive service offerings.

Additionally, their dominance is reinforced by their ability to adapt to evolving customer needs, invest in technology and innovation, and provide exceptional customer service. These key players continue to strengthen their positions through strategic partnerships, mergers, acquisitions, and continuous investment in enhancing their service capabilities.

The Corporate Travel Market is segmented as follows:

By Type

• Managed Business Travel
• Unmanaged Business Travel

By Purpose

• Marketing
• Internal Meetings
• Trade Shows
• Product Launch
• Others

By Expenditure

• Travel Fare
• Lodging
• Dining
• Others

By Age Group

• Travelers Below 40 Years
• Travelers Above 40 Years

By Traveller

• Group Travel
• Solo Travel

By Industry

• Government
• Corporate

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America