Business Travel Lodging Market Research Analysis

Business travel lodging market size in 2021 was valued at USD 353.44 Billion. It is expected to grow at 12.42% CAGR from 2023-2030 to USD 523.68 billion by 2030.

The business travel lodging market is a subset of the overall hospitality industry. This market is growing rapidly as businesses increasingly recognize the importance of travel for their employees. The market is also benefiting from the growth of the sharing economy, which has made it easier for business travelers to find affordable and convenient lodging. The business travel lodging market can be segmented by type of lodging.

The most popular types of lodging for business travelers are hotels and apartments. Hotels are generally preferred for their convenience and amenities, while apartments are often favored for their affordability and spaciousness. The business travel lodging market can also be segmented by region. The most popular regions for business travel are the United States and Europe. In the United States, the market is dominated by large hotel chains, while in Europe, the market is more fragmented. The business travel lodging market is expected to grow rapidly in the coming years. The growth of the sharing economy and the increasing popularity of business travel are both contributing to this growth.

Business travel trends post COVID

The cancellation of MICE events had a severe impact on business travel lodging. Nearly all MICE events around the world were cancelled due to COVID-19. MICE events were cancelled or delayed for indefinite periods during 2020. The Center for Exhibition Industry Research (CEIR) estimates that 72.6% of scheduled events were cancelled in the first quarter of 2020. This accounted for 15.1% of the industry’s loss.

The economy’s development depends on small and medium-sized businesses (SMEs). These businesses offer many job opportunities and are a significant sector that helps reduce unemployment even when large companies are closing down. The growth of SMEs is hampered by certain obstacles, such as limited SME financing and weak linkage to the external market.

Governments have taken numerous initiatives to sustain the economy, such as Skill India and Skill India, the District-level Incubation and Accelerator Programs in India and China, and SME Industrial Clustering, in other countries. Moreover, 95% of global businesses are made up of SMEs. Professionals worldwide have had more opportunities to travel on business because of the growth of SMEs. The business travel lodging market will continue to grow in the future.

There are many types of tourism: business, leisure, medical, and others. Lifestyle changes, increased tourism promotion, accessibility to transport facilities, and an increase in infrastructure are some factors that encourage the growth in the travel & tourism market. These factors will also help fuel the growth in the business travel market. Marketers have many opportunities due to technological advances, rapid industrialization, and rapid urbanization.

Business travelers seek new experiences in lodging and stay. The digitalization of travel has made it possible to book hotels and transport through online portals , this is expanding the hotel and lodging industry. The global market is growing due to continuous development in the tourism and travel industry and the integration of different segments like business travel lodging. The Growth of Business Travel is due to increasing industrialization and increased visits by investors for business expansion.

According to MWR, The hotel market industry has been negatively affected by the increased adoption of ICT technology. Every business’s primary goal is to maximize profit at a minimal cost. High investments often result in high revenue.

Future of travel industry after COVID

The recession and economic uncertainty have affected the market’s strength, which has led to a decline in sales. Many companies have begun adopting cost-cutting strategies, impacting their investment patterns. Business travel lodging can be expensive because it includes accommodation and food. If it’s an international trip, the cost is even higher.

Technological advancements have made this possible. Technology has made it possible to communicate and transact in real-time and at a lower cost through online banking, email, and phone calls. Companies are increasingly adopting various communication technologies, such as video conferencing via online platforms like Skype, FaceTime and Google Meet. In recent years, the low cost and high effectiveness associated with such technology have been a major inhibitor to business travel, lodging, and transportation growth.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Segment Review of Business Travel Lodging Market Report

Segmentation of the market is based on enterprise size. This includes small, medium, and large businesses. The global business travel lodging market is divided into healthcare, pharmaceutical, food and beverage, hospitality and IT, technology, telecom, finance, insurance, non-profit organizations, transport and logistics and retail and consumer goods. Energy and utilities, construction, engineering, and others.

To understand regional trends, the market is analyzed in North America, Europe and Asia-Pacific. To understand the potential and dynamics of the business travel lodging market, the report highlights the drivers and restraints and the growth strategies used by key players. The global business travel lodging market can be divided based on enterprise size into small, medium, and large businesses. The largest segment with a market share in business travel lodging was the medium enterprises, which accounted for 34% of the global market. Large enterprises followed closely.

The large enterprise segment is growing in popularity with business travelers due to the increased amenities at these properties and the increased demand for comfort, entertainment, and leisure. This category is forecast to expand rapidly in the Global Business travel market.

The global business travel lodging market can be divided by industry into healthcare, pharmaceutical, food and beverage, hospitality and IT, technology, telecom, finance, insurance, non-profit organizations, transport and logistics and retail and consumer goods. Every industry has business travel as a key component of its growth. Some industries require more frequent travel to market and train employees. This requires providers to provide long or short lodging services.

Business Travel Lodging Market – Introduction

Business travel lodging is a type of travel accommodation that is specifically designed for business travelers. These accommodations are usually located near business districts and offer a variety of amenities that are designed to make business travel more convenient. There are a number of different factors that can affect the business travel lodging market. The most important of these is the state of the economy.

When the economy is strong, businesses are more likely to travel for conferences and meetings. This increased demand can lead to higher prices for business travel lodging. Geopolitical factors can also affect the business travel lodging market. For example, if there is political instability in a region, businesses may be reluctant to send employees to that area. This can lead to a decrease in demand for business travel lodging in that region.

Another factor that can affect the business travel lodging market is the availability of hotel rooms. When there is a shortage of hotel rooms, prices will usually increase. This can be caused by a number of factors, such as a natural disaster or a large convention that is being held in a city. The business travel lodging market can also be affected by the time of year. For example, prices are usually higher during the summer months when business travel is at its peak. Prices will usually decrease during the off-season when there is less demand for business travel lodging.

Business Travel Lodging Market – Market Size

Business travel lodging is a type of accommodation that is specifically designed for business travelers. These lodgings are usually located near business districts or major airports. Business travel lodgings typically offer a variety of services and amenities that are geared towards the needs of business travelers, such as meeting and conference facilities, business centers, and high-speed Internet access.

The rise in business travel, especially in emerging economies, is the key factor driving the growth of the business travel lodging market. In addition, the growing trend of bleisure travel, which is a combination of business and leisure travel, is also boosting the demand for business travel lodgings.

The Asia-Pacific region is the largest market for business travel lodgings, accounting for a share of 38.6% of the global market in 2020. The region is also expected to be the fastest-growing market during the forecast period, growing at a CAGR of 6.8%. The growing number of business travelers in the region, especially in countries such as China, India, and Japan, is the key factor driving the growth of the business travel lodging market in the Asia-Pacific region.

The business travel lodging market is fragmented, with a large number of small and medium-sized players. The key players in the market are Hilton Worldwide Holdings Inc., Marriott International Inc., Hyatt Hotels Corporation, Choice Hotels International Inc., and IHG (InterContinental Hotels Group).

Business Travel Lodging Market – Market Growth

The business travel lodging market is expected to grow significantly in the coming years. This is primarily due to the increasing number of business travelers who are opting for short-term rentals and serviced apartments instead of traditional hotels. The growth of the business travel lodging market is also being driven by the increasing preference for shared accommodation among business travelers. This is because shared accommodation is more cost-effective and offers more privacy and flexibility than traditional hotel rooms.

In addition, the growing popularity of vacation rentals and the increasing number of vacation rental listings are also contributing to the growth of the business travel lodging market. The growth of the business travel lodging market is expected to continue to be driven by the above mentioned factors. However, the market is also expected to be restrained by the lack of standardization in the vacation rental industry, which may deter some business travelers from opting for vacation rentals.

Business Travel Lodging Market – Market Segmentation

There are various types of business travel lodging, which can be categorized into four main segments. These are corporate hotels, serviced apartments, vacation rentals, and hostels.

1. Corporate Hotels: These are hotel chains that cater to business travelers. Some of the popular corporate hotel chains are Marriott, Hilton, and InterContinental.

2. Serviced Apartments: These are furnished apartments that come with housekeeping and other services. They are ideal for long-term stays.

3. Vacation Rentals: These are privately owned homes that are rented out to travelers. They are a popular option for families and large groups.

4. Hostels: These are budget-friendly accommodations that are perfect for solo travelers.

Business Travel Lodging Market – Market Trends

1. The business travel lodging market is expected to grow at a CAGR of around 5% during the forecast period.

2. The major drivers for the market growth are the increasing number of business trips and the need for comfortable accommodations during these trips.

3. The rising number of corporate travelers is another key factor driving the market growth.

4. The business travel lodging market is also being driven by the increasing number of women business travelers.

5. The business travel lodging market is segmented by type, into full-service hotels, limited-service hotels, and extended-stay hotels.

6. The full-service hotels segment is expected to grow at the highest CAGR during the forecast period.

7. The business travel lodging market is also segmented by geography, into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

8. North America is expected to be the largest market for business travel lodging, followed by Europe.

Business Travel Lodging Market – Market Opportunities

The major drivers for the growth of the market are the increasing number of business trips and the growing preference for short-term rentals over traditional hotels.

The rising number of business trips is one of the major drivers for the growth of the business travel lodging market. According to the World Travel & Tourism Council (WTTC), the business travel sector is expected to grow at a rate of 4.7% per year between 2018 and 2028. This growth is driven by the increasing number of business trips taken by employees of multinational corporations. The number of business trips taken by employees of multinational corporations is expected to reach 1.33 billion by 2025.

The preference for short-term rentals over traditional hotels is another driver for the growth of the business travel lodging market. Short-term rentals offer a number of benefits over traditional hotels, such as lower prices, more flexible booking terms, and the ability to choose from a wide range of properties. The number of short-term rentals listed on Airbnb has grown from 1 million in 2014 to 6 million in 2018.

This growth is expected to continue, driven by the increasing number of business travelers who are choosing to stay in short-term rentals. By type, the market is segmented into apartments, hotels, and serviced apartments. The hotel segment is expected to account for the largest share of the market, followed by the serviced apartment segment. By geography, the business travel lodging market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. The business travel lodging market is dominated by a few major players, such as Airbnb, Marriott International, Hilton Worldwide, and Hyatt Hotels Corporation.

Business Travel Lodging Market – Market Drivers

The key drivers of this market are the growing business travel expenditure, the rise in the number of international trips, and the growing preference for business travelers for short-term rentals and apartments. The global business travel expenditure is expected to grow at a CAGR of over 4% during the forecast period. The rise in the business travel expenditure is mainly due to the growing number of international business trips. According to the World Travel and Tourism Council (WTTC), the number of international business trips is expected to grow at a CAGR of over 5% during the forecast period. This is expected to drive the growth of the business travel lodging market during the forecast period.

The number of international trips is also expected to grow during the forecast period. According to the World Tourism Organization (UNWTO), the number of international tourist arrivals is expected to grow at a CAGR of over 4% during the forecast period. This is expected to drive the growth of the business travel lodging market during the forecast period.

The preference for short-term rentals and apartments is also expected to grow during the forecast period. This is due to the growing number of business travelers who are looking for alternatives to traditional hotels. According to a report by Phocuswright, the number of business travelers using short-term rentals is expected to grow at a CAGR of over 9% during the forecast period. This is expected to drive the growth of the business travel lodging market during the forecast period.

Business Travel Lodging Market – Market Challenges

1. The business travel lodging market is facing a number of challenges.

2. The most significant challenge is the slow economic growth in many parts of the world. This has led to a reduction in business travel, as companies are cutting back on their travel budgets.

3. Another challenge is the rise of alternate accommodation options such as Airbnb and vacation rental properties. These options are often cheaper and more convenient than traditional hotels, and they are attracting more business travelers.

4. Another challenge for the business travel lodging market is the increasing popularity of bleisure travel. This is when business travelers extend their trips for leisure purposes. This trend is cutting into the demand for business travel lodging, as travelers are choosing to stay in leisure accommodations instead.

5. The final challenge facing the business travel lodging market is the consolidation of the industry. This has led to fewer choices for business travelers, as there are fewer hotel brands to choose from.

Despite these challenges, the business travel lodging market is still expected to grow in the coming years. This growth will be driven by the continued growth of business travel, as well as the increasing demand for alternate accommodations such as Airbnb.

Business Travel Lodging Market – Future Outlook

The business travel lodging market is highly fragmented with the presence of numerous small and large players. The key players in the market include Marriott International, Hilton, Hyatt Hotels, IHG, and Wyndham Hotels & Resorts. The growth of the business travel lodging market is primarily driven by the increasing business travel expenditure and the changing preference of business travelers for short-term stays. Moreover, the growth of the sharing economy and the rise in the number of millennial business travelers are also some of the major factors driving the growth of the market. However, the high cost of business travel lodging and the strict government regulations are some of the major factors restraining the growth of the market.

The business travel lodging market is segmented based on type, room type, and geography. Based on type, the market is segmented into branded and unbranded. The branded segment is further sub-segmented into international chains and national chains. Based on room type, the market is segmented into standard rooms, deluxe rooms, and suite rooms.

Geographically, the business travel lodging market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The Asia-Pacific region is expected to witness the highest growth during the forecast period, owing to the increasing business travel expenditure and the growing number of business travelers in the region. Some of the key players operating in the business travel lodging market include Marriott International, Hilton, Hyatt Hotels, IHG, and Wyndham Hotels & Resorts.

Key Benefits for Stakeholders in business travel market Report

• Global Business travel market size report presents a quantitative analysis of the market segments, current trends and dynamics of this market analysis between 2018-2030 to identify the most promising business travel lodging market opportunities.
• Market research and information about key drivers, constraints, and opportunities are available.
• Porter’s Five Forces Analysis identifies the potential of buyers and sellers to help stakeholders make a profit-oriented business decisions and strengthen their supplier-buyer relationships.
• A detailed analysis of the market segmentation for business travel lodging helps identify the most promising market opportunities.
• The major countries of each region are mapped based on their contribution to the global marketplace.
• The positioning of market players facilitates benchmarking and provides a clear understanding of the current position of market players.
• This report analyzes the global and regional market trends, key market players, market segments, application areas, and growth strategies for business travel industry.

Leading companies in the Business Travel Lodging Market:

1. Marriott International Inc.
2. Hilton Worldwide Holdings Inc.
3. InterContinental Hotels Group PLC
4. Accor SA
5. Hyatt Hotels Corporation
6. Wyndham Hotels & Resorts Inc.
7. Choice Hotels International Inc.
8. Radisson Hospitality AB
9. Best Western Hotels & Resorts
10. Four Seasons Hotels Limited

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA