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| Business Tourism
Market |
The
business tourism market consists of meetings, incentives, conferences and
exhibitions (MICE). The MICE tourism has gained popularity among businesses and
is becoming a vital component of travel and tourism industry owing to its
advantages such as increasing international interaction, expanding business
networks, enhancing employee motivation and strengthening team building and
collaborative culture. With rising globalization, companies are increasingly
using MICE tourism to enhance brand visibility and boost sales performance. In
addition, growing demand for international corporate meetings and events is
expected to boost the market growth over the forecast period.
The
Global business tourism market is estimated to be valued at US$ 2,897.85 Mn in 2024 and is expected
to exhibit a CAGR of 4.3% over the
forecast period 2024 to 2031.
Key Takeaways
Key players operating in the
Business
Tourism Market Share are Adelman Travel Group, Wexas Travel, American
Express Global Business Travel, BCD Travel, Carlson Wagonlit Travel (CWT),
Expedia Group, Flight Centre Travel Group, Hogg Robinson Group (HRG), HRG North
America, Corporate Travel Management (CTM), Egencia, FCM Travel Solutions, HRG
Nordic, Omega World Travel, Sabre Corporation, Thomas Cook Group, Travel
Leaders Group, Travel and Transport, TUI Group, World Travel, Inc. BCD Travel
and American Express Global Business Travel dominate the global business
tourism market with their well-established global presence and diverse service
portfolio. Meanwhile, rising disposable income among middle-class group and
growing international business collaborations are expected to create new
opportunities for players in the market.
In addition, key players are expanding their global footprint by opening new
offices in high potential markets such as Asia Pacific, Middle East and Latin
America to tap into new business opportunities. For instance, in 2021, American
Express Global Business Travel announced the opening of a new office in Bogota,
Colombia to better serve business travel needs of clients in Latin American
region.
Market Drivers and Restraints
Some of the key drivers propelling growth of the business tourism market are:
- Increasing globalization of businesses- Growing globalization and
international business partnerships are driving demand for international
corporate meetings, events and overseas travel among companies. This is a major
factor supplementing growth of the business tourism industry.
- Rising disposable incomes- Growing disposable incomes particularly in
emerging economies such as China, India and Brazil have increased spending
power of middle-income group on business related travel and hotel bookings
which is benefiting market growth.
However, factors such as political uncertainty and economic volatility pose
challenges to the growth of business tourism market. Frequent changes in trade
policies and regulations negatively impact international business collaborations
and corporate travel decisions. In addition, risks of terror attacks, pandemic
outbreaks and natural calamities deter many companies from authorizing
international business trips. This acts as a market restraint.
Segment Analysis
Business tourism involves travel for business development purpose such as
exhibitions, conferences and trade shows. The dominated business tourism
segment is meetings, incentives, conferences and exhibitions (MICE) which
contributes more than 50% of the overall market revenue. This is because MICE
events play a crucial role in business decision making and networking. They are
an efficient platform for companies to showcase their products and services,
understand customers’ requirements and generate sales leads.
Global Analysis
Regionally, North America holds the largest share in business tourism market
owing to presence of major global events industry players in countries like the
US and Canada. Asia Pacific is projected to witness the fastest growth during
the forecast period due to rising adoption of business tourism in developing
economies of China and India for trade promotions. Europe is also among the
prominent business tourism hubs globally with countries such as Germany, UK and
France attracting large business events and exhibitions annually. Key growth
drivers are growing globalization, expanding corporate spending and increasing
number of international associations.
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Tourism Market
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