April 17, 2024

Springswines

The Tour And Travel Enthusiasts

Study: Business Travel Set to Reach $1 Trillion by 2030

2 min read
Study: Business Travel Set to Reach  Trillion by 2030

Despite the rise of virtual meetings and working from home, business travel isn’t going anywhere, with the sector forecast to hit nearly $1 trillion by 2030.

While the post-pandemic recovery in business travel has lagged behind the resurgence of leisure travel, the market was estimated at $665.3 billion in 2022.

By 2030, that figure will stand at $928.4 billion, following a decade of 4.3 percent compound annual growth (CAGR), a new report from Research and Markets forecasts.

Traveler / Photo: GaudiLab/Shutterstock

China will see the fastest rise in business travel spending as it shifts away from its zero COVID policy and experiences strong GDP growth. Research and Markets forecasts that Chinese business travel spending will grow at an annual rate of 6.2 percent between 2022 and 2030, hitting $59.2 billion by 2030.

Other strong performers across the decade will be Canada (4.3% CAGR), Germany (3.7 percent), and Japan (3.2 percent), indicating a truly global recovery in the sector.

Over the next decade, businesses will spend more than ever on travel accommodation and food, with the sector slated for 5% annual growth to $509.8 billion by 2030.

Business travelers will also be kept well entertained on their jaunts. The recreation segment of the market is predicted to grow at an annual rate of 3.8 percent.

American Airlines traveler reclining in First Class / Photo: American Airlines

The growth comes despite significant challenges for the global economy and the business travel sector, including the ongoing war in Ukraine and a slower-than-expected deceleration of inflation. In particular, inflation in food and fuel remains a major obstacle in developing countries, and high prices continue to dent consumer spending and confidence worldwide.

However, market researchers are confident that new technologies, including generative and applied Artificial Intelligence (AI) and the industrialization of machine learning, will boost economies in the near future.

The business travel market will reap the benefits of this economic growth despite the sector’s exposure to complex regulatory and technological forces.