The corporate travel category is anticipated to grow at a CAGR of 13.99% from 2023 to 2030. APAC holds the largest category share of over 40% and it is expected to be the fastest growing region during the forecast period. The increasing globalization of businesses and the rise of the knowledge-based economy are driving the demand for corporate travel as companies seek to establish and maintain relationships with clients, partners, and suppliers around the world. Furthermore, the emergence of new technology and the digitization of the economy allow firms to function more efficiently and effectively across borders, fueling the expansion of the corporate travel sector. Furthermore, as more people desire to engage in international trade, investment, and commerce, the global middle class and the growing number of high-net-worth individuals are also fueling the demand for corporate travel.
The increasing penetration of the Internet of Things (IoT) has enabled both travelers and travel operators to complete tasks quickly and easily. In addition, Virtual Reality (VR) technology enables better, more efficient, and tailored customer experiences, driving industry growth. Aside from that, the growing trend of Bleisure travel, which combines business and pleasure aspects and provides leisure or recreational activities to reduce stress and improve work effectiveness, has given the sector a boost. Also, another trend driving this category is the increasing desire of consumers to book through online travel agencies which has led to the increasing use of internet travel booking portals. Travel portals and agencies are devising new strategies to advertise their web portals. For example, CWT is incorporating WhatsApp into its traveler support channels, with the service presently available to a limited number of customers participating in a pilot. It plans to complete a comprehensive deployment to all clients by the end of 2023.
The corporate travel category is moderately fragmented and highly competitive with a large number of major as well as regional players. The leading companies in the business travel industry are using a variety of strategies to enhance their category share. Various mergers, acquisitions, and collaborations are taking place in order to expand the firm strategically. For instance:
• In August 2022, by collaborating with FairFly, BCD Group (BCD Travel) is able to provide its Air Price Assurance (APA) solution more effectively and efficiently to all of its clients worldwide. Through this partnership, BCD Travel will be able to power its APA service with help of FairFly's technology and artificial intelligence.
• In July 2022, Corporate Travel Management Limited has acquired 1000 Mile Travel Group Ltd. This acquisition has enabled the company to increase its market in the corporate travel arena through the independent consultant model.
• In July 2022, CWT Global B.V. stated that it would add car rental and train booking functionality to the mobile and web channels on its myCWT platform.
Order your copy of the Corporate Travel Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Staff costs, IT costs, marketing & legal overheads, travel and accommodation tie-ups associated costs, and office rental are some the expenses incurred in providing corporate travel services. Corporate travel service providers usually have tie-ups with hotels, and travel companies for clients and end-use organizations. To build network with these companies service providers incur tie-up cost. Staff and IT costs account for a major part of the overall cost structure. Staff cost include staff salaries, staff training and development cost etc. IT costs consist of platform building cost for clients to access different services, and accommodation and travel options available. Clients can also keep a track on their bookings through these platforms. The overall cost of the service mainly depends on the destination, duration of the stay, and the type of services availed.
China, U.S., France, U.K., Japan and Singapore are the some of the preferred business travel destinations. These countries are among the nations focusing significantly attract business tourists. This is also being fueled by the expanding business and trade prospects with these nations. China currently hosts the largest business show in Asia, and experts predict that it will continue its dominance during the forecasted period as well. When sourcing for corporate travel, it is important to research potential suppliers by comparing prices, services, and reviews. It is also important to ensure that the suppliers are reputable and reliable. Once potential suppliers have been identified, it is necessary to negotiate with them to get the best possible prices and terms. However, it is important to be prepared to walk away from a deal if the terms are not satisfactory. Additionally, it is possible to consider using a travel management company to assist with booking flights, hotels, and negotiating discounts. Finally, it is important to utilize technological solutions to track spending and manage budgets, ensuring a smooth travel program.
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Corporate Travel Procurement Intelligence Report Scope
• Corporate Travel Category Growth Rate: CAGR of 13.99% from 2023 to 2030
• Pricing growth Outlook: 2% - 3% (annual)
• Pricing Models: Dynamic pricing model, Bundle pricing model
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier selection criteria: Service level, reliability, sustainability, reputation, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Key companies profiled
• Airbnb, Inc.
• Corporate Travel Management
• Expedia, Inc.
• American Express
• Flight Centre Travel Group Limited
• BCD Group
• Fareportal
• Booking Holdings, Inc.
• Carlson Wagonlit Travel
• Wexas Limited