Business Travel Lodging Market Research, 2028
The global business travel lodging market was valued at $257.40 billion in 2018, and is projected to reach $450.80 billion by 2028, growing at a CAGR of 14.77% from 2021 to 2028.
Small and medium-sized enterprises (SMEs) play a crucial role in the development of economy. These firms offer numerous job opportunities, and therefore, are one of the significant sectors that aid in reducing unemployment, even when large enterprises are downsizing. However, certain challenges such as weak linkage with external market and limited SME financing, act as restraints in the growth of the SMEs. To sustain the economy, governments have started taking numerous initiatives such as Udayami Helpline, Skill India, District-level Incubation and Accelerator Program in India, SME Industrial Clustering in China, and other countries, to promote the growth of the SME segment. Moreover, there are approximately 400 million SMEs across the globe that constitute 95% of the global business firms. The growth of the SMEs has significantly increased the opportunities of business travel of the professionals worldwide. Thus, the business travel lodging market is expected to rise over the coming years.
Travel & tourism includes several types of travel such as leisure travel, business travel, medical tourism, and others. The factors that promote the growth of travel & tourism industry include changes in lifestyle, rise in tourism promotion, increase in accessibility of transport facilities, and surge in infrastructures, which in turn are expected to fuel the growth of the business travel market. Factors such as technological advancements, industrialization, and rapid urbanization, have opened up several opportunities for marketers worldwide. For that purpose, the business travelers are looking for new experience in their lodging and stay. Digitalization has given rise to easy access of hotel & transport booking through online portals, which further boost the business travel lodging industry. Continuous development in the travel & tourism industry and integration of various segments such as business travel lodging accelerate the growth of the global market. Rise in industrialization and increasing visits of investors regarding business expansion worldwide is expected to support Business Travel Lodging Market Demand.
However, rise in adoption of ICT technology has impacted the market negatively. The primary focus of every business is to achieve profit maximization at minimum cost. High investment often generates high revenue. However, economic uncertainty along with recession has degraded the strength of the market, thereby declining the sales significantly. This has changed the pattern of investments for several companies, as they have started adopting cost-cutting strategies. However, business travel lodging is an expensive affair, as it involves accommodation, food, and the expense is significantly higher if it is an international trip. This issue has been overcome with the help of technological advancements. Advancements such as online banking, phone calls, emails, and video conferences, have made communication and transactions significantly cost-effective and easy in real time. Moreover, the emergence of real-time communication opportunity is encouraging companies to adopt several communication technologies such as video conferencing through online platforms such as Skype, FaceTime, Google Meet, and Zoom. Low cost and high effectiveness of such technology is acting as a major restraint for the growth of business travel, business travel lodging, and business travel transportation in the recent years.
The market segmentation on the basis of enterprise size, includes small enterprises, medium enterprises, and large enterprises. The global business travel lodging market, based on industry, is segmented into pharmaceutical and healthcare, agriculture, food & beverage, hospitality, business services and consulting, IT, technology and telecom, finance and insurance, non-profit organizations, transport and logistics, retail and consumer goods, energy and utilities, construction and engineering, and others. The market is analyzed based on four regions across North America, Europe, Asia-Pacific, and LAMEA to understand its regional trends. The report highlights the drivers, restraints, opportunities, and growth strategies adopted by the key players to understand the dynamics and potential of the business travel lodging market size.
Based on the enterprise size, the global business travel lodging market is segmented into small enterprises, medium enterprises, and large enterprises. Medium enterprises were the dominating segment that garnered a business travel lodging market share of ~34% in 2020 followed by the large enterprises. Large enterprises segment is gaining huge popularity among the business travelers, owing to increased facilities in these properties, increased requirement of comfort, entertainment, and leisure among the people. The category is expected to grow rapidly over the Business Travel Lodging Market Forecast years (2021-2028).
On the basis of industry, the business travel market is categorized into pharmaceutical and healthcare, agriculture, food & beverage, hospitality, business services and consulting, IT, technology and telecom, finance and insurance, non-profit organizations, transport and logistics, retail and consumer goods, energy and utilities, construction and engineering, and others. Business travel plays a key role in the growth of business in every industry. In some industries, travelling is more intense for the purpose of marketing and training of employees, which requires long or short lodging service by the providers.
Based on the region, the business travel lodging market is analyzed across North America, Europe, AsiaPacific, and LAMEA. Asia-Pacific is the largest and fastest-growing market followed by Europe and North America. Asia-Pacific is characterized by huge population, rapid urbanization, growing infrastructural facilities, availability of cheap labor, and increased government initiatives to attract foreign investments.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the business travel lodging market analysis from 2018 to 2028 to identify the prevailing business travel lodging market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the business travel lodging market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global business travel lodging market trends, key players, market segments, application areas, and business travel lodging market growth strategies.
Business Travel Lodging Market Report Highlights
By Enterprise Size
Key Market Players
The business travel lodging industry has witnessed steady growth even under severe turbulence such as global uncertainty, weakened global economy, terrorist attacks, world health issues, and others. This is attributed to the positive impact of business travel encouraged by increasing globalization and ease in transportation, which has expedited the business travel lodging worldwide. According to the insights of the CXOs, Asia-Pacific region is expected to grow at a significant rate during the Business Travel Lodging Market Forecast period, owing to increase in government initiatives to carry out business activities conveniently. Moreover, economic development is a prime factor in business travel, as it plays a major role in managing relationships, investments, supply chains, and logistics, which further influences trade in the domestic & international markets. Rise in trend of online booking & fund transfer has increased the convenience and lowered the cost of travel and lodging expenses, thereby offering a pleasurable experience to the travelers.