Business Travel Arrangement Service Market Size, Share, Growth, and Industry Analysis, By Type (Consulting Services, Transportation & Accommodation, Meetings & Events Management, and Others), By Application (Large Enterprises and SMEs) and Regional Insights and Forecast to 2032

Updated On: 13 May 2024

BUSINESS TRAVEL ARRANGEMENT SERVICE MARKET REPORT OVERVIEW

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The global business travel arrangement service market size expanded rapidly in 2022 and will grow substantially by 2029, exhibiting a prodigious CAGR during the forecast period.

Business travel arrangement service is a time-saving and convenient tool for the problem of employee’s traveling services arrangement. Services usually encompass air ticket booking, arranging the accommodation, handling the ground transportation, and organizing the whole itinerary. These services not only ensure the enforcement of company policies but also reduce costs and provide travelers with 24/7 support. When companies hire professional specialists to perform these functions, they get plenty of time and resources to offer a seamless and enjoyable business travel experience.

COVID-19 Impact: Market Growth Restrained due to Travelling Limitation

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The pandemic of COVID-19 has posed a deep challenge to the market of business travel arrangements. Travel limitations, border closures, and health factors caused a huge drop in corporate travel demand. A lot of companies implemented remote working policies which helped in curtailing travel needs. Travel agencies and corporate travel management companies experienced a significant drop in bookings, resulting in a loss of revenue and operational complexity. Companies changed by offering flexible cancellation policies, highlighting the safety measures section, and Meeting Solutions.

LATEST TRENDS

"Integration of Advanced Technologies Propelling Market Growth"

Advanced technology integration in business travel arrangement services has revolutionized the booking process, creating new avenues for market growth. Mobile apps and websites provide easy-to-use booking modes that draw more customers and hence increase the number of clients. AI-powered systems manage itineraries, and expenses and come up with personalized suggestions which, in turn, lead to customer satisfaction and brand loyalty. This technological development not only streamlines business processes for travel agencies but also enriches the client journey, which also causes the existing market to grow.

BUSINESS TRAVEL ARRANGEMENT SERVICE MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into consulting services, transportation & accommodation, meetings & events management, and others.

• Consulting Services: They assist enterprises in strategically managing their travel planning. Consultants gather travel data, design cost-saving strategies, and apply company policies. They provide tailored solutions to optimize travel budgets, increase traveler satisfaction, and, as a result, improve the performance of corporate travel programs.

• Transportation & Accommodation: This category is focused on organizing transportation and accommodation for business travelers. It involves making flight reservations, booking ground transportation, and getting rooms in hotels or serviced apartments. The main purpose on the other hand is to ensure that corporate travels are provided in a way that is convenient and safe to meet the specific needs and expectations of corporate travelers while maintaining the company’s budget and policy.

• Meetings & Events Management: With an emphasis on corporate events, they set about a detailed team that deals with every practical aspect including planning and execution of the event. This includes arranging the right type of venues, coordinating logistics, registering participants, arranging catering services, and supervising audiovisual equipment setup. The objective is to organize the events that will be successful opportunities for the client's requests which may be networking, training, or company development.

• Others: This class includes other services that support different areas of business travel. This might involve travel insurance, visa assistance, expense management software, travel risk management, and destination management services.

By Application

Based on application the global market can be categorized into large enterprises and SMEs.

• Large Enterprises: The Large Enterprise sector is the one that includes established companies that have a lot of travel needs for their workforce. Large businesses tend to conduct trips including regular intercontinental flights, group bookings, and services specific to corporate event management. Large enterprises design travel management solutions that are comprehensive enough to suit their scale, compliance implications, and cost optimization approaches at the same time.

• SMEs (Small and Medium-sized Enterprises): SMEs are small-sized companies with fewer travel groups compared to the travel patterns of large corporations.  they provide people who demand travel management services which assist them occasionally in their business trips, meetings, and conferences. SMEs likely promote cost-effective solutions, flexibility in booking arrangements, and personalized services that cater to their needs and budgetary standards.

DRIVING FACTORS

"Business Extension Strategies Contributing to Market Growth "

Extension of corporate strategies into new geographical markets meets the need for business travel arrangement services. These enterprises need travel management solutions such as conducting market research, business development, and client meetings that are time, resource, and cost-efficient.

With the gradual growth of the global business, the demand for travel abroad for sales teams, executives, and employees also grows driving expenditure in the travel arrangement service market which is mainly for business purposes. Service providers also offer highly customized and efficient travel solutions that meet diverse business requirements which in turn supports business travel arrangement service market growth.

"Rising Awareness Regarding Employees Comfort Boosting Market Growth "

Increased attention to employee well-being is growing the segment of business arrangement travel services that stipulate convenience, safety, and work-life balance. Companies implementing such travel experiences look for service providers offering amenities, wellness systems, and flexible booking systems to ensure employee contentment and loyalty.

In addition to this, the focus on the improved travel experience will not only be in line with the changing business needs but the growth in the market will also be stimulated by the increase in demand for such services that put the well-being of the employees and the positive corporate cultures into consideration.

RESTRAINING FACTORS

"Increasing Demand for Virtual Meetings Impeding Market Growth "

The increasing trend for holding virtual meetings or remote collaboration tools lessens the necessity for traditional face-to-face business travel yet reduces the demand for travel arrangement services. With companies shifting more and more to virtual meetings and conferences, air tickets, hotel reservations, and transport bookings are made less often. The tendency is to control the market size as the volume of transactions and other services needed by the business travel arrangement segment is reduced.

BUSINESS TRAVEL ARRANGEMENT SERVICE MARKET REGIONAL INSIGHTS

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"North America Dominates the Market Due to Strong Corporate Culture"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America dominates in the business travel arrangement services market share, owing to several factors. The area lines numerous global companies with high demand for travel management services. This only paves for enhanced requests for travel management services. Moreover, North America has a modern infrastructure, a stable economy, and many agencies for tourism as well as travel and technology companies providing innovative solutions. These factors, along with a strong corporate culture that focuses on business trips, allow North America to be the leading market by industry.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Landscape Through Robust Brand Presence"

Major players in the market accelerate the process through new services, strong partnerships for competitive pricing and exclusive deals, and a robust brand presence that generates confidence. They provide good marketing and excel in customer service; they continuously build a loyal customer base and expand their market. Moreover, the organizations that invest in research and development of their offerings and keep up with the changes in the market trends, thus these market players keep on improving their services to meet the personal needs of their customers, which therefore generates sustained growth in the business travel arrangement services industry.

List of Market Players Profiled

• ARTA Travel (U.S.)
• BCD Group (Netherlands)
• Cain Travel & Events (U.S.)
• CorpTrav (FROSCH) (U.S.)
• Enterprise Holdings (U.S.)
• FCM Travel Solutions (Australia)
• CWT (U.S.)
• Corporate Travel Management (Australia)
• Direct Travel (U.S.)
• GBT (U.S.)

INDUSTRIAL DEVELOPMENT

April 14, 2022: It has been more than two years now, with a quick turnaround in the business economy across all sectors and with formal India flight operations resuming last month, business travel is back in action across different companies. The top Executives from companies such as Deloitte, KPMG, Dabur, PepsiCo, Tata Steel, Mercedes-Benz India, and UpGrad have confirmed the increase in business travel.

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global business travel arrangement service market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose applications may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies, and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.