Business Travel Market to Reach $1.6 Trillion by 2027

Amid the COVID-19 crisis, the global market for Business Travel estimated at US$1.4 trillion in the year 2020, is projected to reach a revised size of US$1.6 Trillion by 2027, growing at a CAGR of 2.7% between 2020-2027.

Transportation, one of the segments analyzed in the report, is projected to grow at a 2.7% CAGR to reach US$271.1 billion by the end of 2027. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Food & Lodging segment is readjusted to a revised 3.1% CAGR for the next 7-year period. This segment currently accounts for a 52.9% share of the global business travel market.

The USA accounts for over 27% of global market size in 2020, while China is forecast to grow at a 4.9% CAGR for till 2027.

The Business Travel market in the USA is estimated at US$368.3 billion in the year 2020. The country currently accounts for a 27.04% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$327 billion by 2027 trailing a CAGR of 4.9% through 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 0.7% and 1.9% respectively till 2027.

In Europe, Germany is forecast to grow at approximately 1.2% CAGR while the rest of the European market will reach US$327 Billion by the year 2027.

Business Activity Segment Corners a 30.6% Share in 2020

In the global Business Activity segment, USA, Canada, Japan, China and Europe will drive the 1.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$314.9 Billion in the year 2020 will reach a projected size of US$348.5 Billion by 2027.

China will remain among the fastest growing markets in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$224.5 billion by 2027, while Latin America will expand at a 2.5% CAGR in the same period.

Competitors identified in this market include, among others:

• Airbnb Inc.
• American Express Company
• BCD Travel
• BCD Travel Services B.V.
• Booking Holdings Inc.
• Carlson Wagonlit Travel (CWT)
• Expedia, Inc.
• Fareportal, Inc.
• Flight Centre Travel Group Ltd.
• Hogg Robinson Group plc
• Wexas Limited

Medical Tourism Market

The global medical tourism market size is expected to reach USD 207.9 billion by 2027, expanding at a CAGR of 21.1%, according to a new report by Grand View Research, Inc. Medical tourism generates direct foreign exchange income and contributes to the overall development of any economy. It provides employment and business opportunities for residents. Moreover, it helps in the growth of associated businesses such as pharmaceuticals, healthcare devices, and tourism. Government support to maintain the general reputation and political stability of the host country is a key influencing factor that drives the market.

Government authorities are willing to invest in local enterprises to capitalize on the growth of the market. Such government bodies are authorizing projects that help in the overall development of infrastructure in the country such as the public transport system and water supply facilities to attract high-end travelers.

Medical tourism has led to a rise in state-of-the-art healthcare facilities in developing countries to attract foreign nationals, resulting in fast growth of healthcare infrastructure in such countries. Moreover, healthcare providers now offer comprehensive tourism packages that include services ranging from ticket booking to hotel stay and healthcare insurance.