June 18, 2024
Business Tourism Market

Business Tourism Market Estimated To Witness High Growth Owing To Increasing Demand For Meetings, Incentives, Conferences And Exhibitions (MICE) Activities

The business tourism market comprises corporate events such as meetings, incentives, conferences and exhibitions (MICE) that cater to the travel needs of business professionals. The demand for MICE activities is growing significantly as companies are regularly organizing events to promote business relations, branding, sales and empower employees. The Business Tourism Market Demand offers seamless travel management services including air transport, accommodation, transportation and other value-added products and services to corporate travelers.

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 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. These players are focusing on expanding their global presence through mergers and acquisitions.

The key opportunities in the market include growing demand for hybrid and virtual conferences as companies are adapting to the new normal. Moreover, the adoption of smart solutions and analytics is helping business tourism organizations customize travel experiences and achieve higher customer satisfaction.

The global expansion of the business tourism market is supported by rapid urbanization, rise of SMEs, growing investments in transport and hospitality infrastructure across emerging economies. Several destinations are promoting their MICE capabilities to strengthen their global value chain position.

Market Drivers

Increasing globalization and international trade integration is facilitating cross-border collaborations and partnerships between companies worldwide, thereby fueling the demand for business travel and MICE activities. Growing digitalization is enabling efficient travel bookings, expense reporting and real-time travel updates, which is encouraging more organizations to leverage business travels for networking. The confluence of virtual and in-person events is expected to further stimulate the growth of the business tourism market over the forecast period.

PEST Analysis

Political: Business tourism market is affected by political factors like travel restrictions, visa policies, taxation policies, safety and security concerns etc. Changes in any of these political factors affect the business tourism market.

Economic: Economic factors like GDP growth, exchange rates, interest rates, inflation etc. have a direct impact on the business tourism market. During economic recession, companies cut down on travel and conferences which negatively impacts the business tourism market.

Social: Changing demographics, lifestyle changes, social media trends are influencing the business tourism market. Rise in virtual meetings indicates social acceptance of virtual interactions replacing physical interactions.

Technological: Advanced technologies like artificial intelligence, virtual and augmented reality are enabling virtual interactions replacing physical travel to an extent. Collaboration tools allow efficient remote working and virtual conferences reducing need for physical travel. Wider internet access promotes digitalization and virtual interactions.

The geographical regions where the business tourism market is concentrated in terms of value are North America and Europe. North America accounts for the largest share currently due to presence of global businesses in the region. Within Europe, Western Europe leads due to strong travel and tourism industry.

The fastest growing region for the business tourism market is predicted to be Asia Pacific region. Rapid economic growth, rising global investments and developing MICE industry is driving business travel growth in Asia Pacific countries like China, India and Southeast Asian nations. Infrastructure developments and government initiatives in Asia Pacific are attracting more business events and conferences in the region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.