USA | Business Travel is expected to be driven by significant market growth, supported by online travel bookings and recent research.
The global business travel market size is estimated to grow by USD 3.21 billion from 2024 to 2028, according to a recent report from Technavio.
The market is estimated to grow at a CAGR of over 34.28 percent during the forecast period. Growing technological advances is driving market growth, with a trend towards growing preference of consumers to book through online travel agencies. However, the rising penetration of online video conferencing platforms poses a challenge.
Online travel portals have gained favour among businesses for their convenience and efficiency. Upside, a leading player in this space, caters specifically to business travellers with its exclusive deals and VIP programs. Notably, they offer a free USD150 card for each purchased package, a feature that has attracted over 5,000 companies.
Another key player, Booking.com, stands out with its customised hotel options tailored to different business trip types and amenities. These unique features contribute significantly to the expansion of the global business travel market during the forecast period.
Business travel, a significant segment of the tourism industry, continues to evolve with various trends shaping its landscape. Regular tourism merges with leisure travel, allowing professionals to combine business and leisure. Virtual reality and augmented reality technologies enhance travel experiences, while smart hotels and digitisation streamline accommodation and work-related needs.
Transportation infrastructure, including roads, airports, rail networks, and air routes, undergoes advancements to improve connectivity and profit maximisation. The economy, unemployment, and SME financing impact business travel expenditure. Udayami Helpline and travel retail cater to unique needs, while artificial intelligence, chatbots, and cost-cutting strategies optimise online travel and hotel booking. Infrastructural investments in hospitality and infrastructure boost corporate profitability. Medical tourism, lifestyle changes, and tourism promotion foster new opportunities. Priceline and other platforms facilitate business-oriented travel for conferences and congresses. Infrastructure development in the transportation and accommodation sectors remains crucial for continued growth.
Online video conferencing platforms, such as Zoom and Google Meet, are increasingly competing with traditional players in the business travel market. The widespread adoption of these tools by corporations during the pandemic has made them an effective alternative for meetings and conferences. Companies are now leveraging these cost-effective communication technologies to reduce business travel expenses. Advancements in online banking, phone calls, emails, and video conferencing provide efficient and affordable communication and transaction solutions. The growing availability of real-time communication opportunities is driving companies to adopt various communication technologies like Skype, FaceTime, Google Meet, and Zoom. The significant cost savings and high effectiveness of these platforms are major factors hindering the growth of the global business travel market. Consequently, the increasing penetration of online video conferencing platforms is expected to negatively impact the industry during the forecast period.
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