Business Travel Lodging Market Analysis 2022-2030

Business Travel Lodging Market Research Analysis

Business travel lodging market size in 2020 was valued at $297.40 million. It is expected to grow at 14.77% CAGR from 2021-2028 to $450.80 billion.

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.

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.

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.

Major Players

• Airbnb, Inc. (US)
• American Express Company (US)
• BCD Group (Netherland)
• Booking Holdings (US)
• CWT Solutions (US)
• Corporate Travel Management (Australia)
• Expedia, Inc. (US)
• Fareportal (US)
• Flight Centre Travel Group Limited (formerly Flight Centre Limited) (US)
• Wexas Travel (UK)
• Hogg Robinson Ltd (UK)
• Priceline (US)
• Egencia LLC (US)
• Frosch International Travel (UK)
• Ovation Travel Group (US)
• Travel Leaders Group (US)

Key Market Segments of Business Travel Lodging Market

• Enterprise Size
  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises
• Industry
  • Construction And Engineering
  • Pharmaceutical And Healthcare
  • Agriculture Food and 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
  • Other

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

Research Approach/Methodology

MWR’s research methodology is based on extensive use of secondary and primary data sources. The research involves the analysis of various aspects impacting the industry, including the policies of the government, the competitive landscape, the market environment and historical data, as well as current developments in the market technological innovation, emerging technologies, and the advancement of technology in related industries, and potential market risks as well as market barriers and issues.

Market Size Estimation

Bottom-up and top-down approaches are employed to verify the size of the global business travel lodging market and to estimate the size of the market for companies’ regions, regions segment as well as product segments and applications (end users). The market estimates are built on the product’s retail price (excluding discounts offered by the distributor, manufacturer, wholesaler, trader, or).

Partially splits, market shares and breakdown of product segments are calculated based on the weights allocated to each segment based on their usage rate and average sale price. The regional splits of the total product market and sub-segments are determined by the per cent of adoption or use of the particular product within the specific region or country.

Top key players on the business travel lodging market is determined through secondary data, and the market revenue is determined by secondary and primary approach. Secondary research comprised the study of financial and annual reports of the largest companies. In contrast, primary research involved extensive interviews with opinion makers and experts in the industry like experienced front-line employees, directors, CEOs, and marketing managers.

The market share, percentage splits and Growth Rate, as well as the market structure of the product, are calculated from secondary sources and then verified by primary sources. All potential factors that affect the markets are verified by conducting primary analysis, and then analyzed to obtain the final qualitative and quantitative results.

Market Breakdown, Data and Triangulation

After completing market engineering, including calculations of market statistics, size estimations, forecasting of market breakdown, and data triangulation, a lot of analysis are then conducted to collect details and to confirm the numbers to be verified.

Throughout the entire method of market engineering, top-down and bottom-up methods are were widely used, together with a variety of triangulation techniques for market estimation and forecasting of market trends for the entire market segment and sub-segments . A thorough analysis of quantitative data is also carried out using all the data gathered during the entire market engineering process to present important information throughout the research.

Data Sources of business travel lodging market

Secondary Sources

Secondary sources include annual reports, press releases, non-profit organizations and industry associations, government agencies, customs information, and others. This study focuses on extensive use of secondary sources, directories, databases, and directories like Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones and Company) and trading ECONOMICS and News Network, Statista, Federal Reserve Economic Data, annual reports, BIS Statistics, ICIS and company house documents CAS (American Chemical Society) and investor presentations along with SEC filings of corporations.

Secondary research are utilized to discover and gather details that could be used for a thorough technological, market-oriented and commercial analysis of the product market. It also helps collecting necessary information on the most prominent companies, market classification and segmentation by market trends from the lowest level, and critical technological and market developments.

Primary Sources of business travel lodging Market 

For the research process, different sources from both the demand and supply sides are being interviewed to collect quantitative and qualitative information. The primary sources on the supply side comprise companies (and their rivals) and opinion leaders, experts from the industry and research institutes, distributors, traders and dealers, raw material suppliers and producers, etc.

The primary sources for demand-side information are industry experts, such as business leaders, sales and marketing directors, directors of innovation and technology supply chain executives, the market (product buyers) and top executives from a variety of key organizations and companies operating globally.

The primary studies are then conducted to find segments, types of segmentation, price ranges, application of the product important company, raw materials supply and demand downstream as well as the status of the industry and its forecast, and the fundamental market dynamics, such as risk factors, influence factors and opportunities obstacles to market entry, trends in the industry, and the strategies of key players.

Impact of covid-19 on travel industry

To understand the impact of COVID, we must understand the supply chain of the industry and the value chain. By analysing the supply chain, we understand the bottlenecks affecting the industry’s growth. And by analysing the value chain, we understand what value each component adds to the entire industry. We then try to understand the COVID impact has on the industry by trying to find answers to the following questions: 

How many jobs have been lost?

How many people have died due to COVID?

How did the Government respond, and what measures Government has taken to revive a particular industry?

How companies have responded to COVID in business travel lodging market?

What growth rate companies are expecting?

We also analyse their annual reports and press releases to understand their
strategies post COVID. Then we move towards the primary research part and contact government officials and industry experts such as CEOs, COOs, Directors, VPs, Directors and Managers to understand what impact COVID has had on their businesses and what they are doing to cope with it.

We also try to understand their views regarding other financial aspects, such as recovery and obstacles in achieving pre-COVID growth and when they expect to achieve it.

Finally, after gathering the info from secondary and primary research, we try to form a model through which we gauge the COVID impact on a particular industry ( business travel lodging market).