The business tourism market consists of meetings, incentives, conferences and exhibitions (MICE). The MICE tourism has gained popularity among businesses and is becoming a vital component of travel and tourism industry owing to its advantages such as increasing international interaction, expanding business networks, enhancing employee motivation and strengthening team building and collaborative culture. With rising globalization, companies are increasingly using MICE tourism to enhance brand visibility and boost sales performance. In addition, growing demand for international corporate meetings and events is expected to boost the market growth over the forecast period.

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 Share 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. BCD Travel and American Express Global Business Travel dominate the global business tourism market with their well-established global presence and diverse service portfolio. Meanwhile, rising disposable income among middle-class group and growing international business collaborations are expected to create new opportunities for players in the market.

In addition, key players are expanding their global footprint by opening new offices in high potential markets such as Asia Pacific, Middle East and Latin America to tap into new business opportunities. For instance, in 2021, American Express Global Business Travel announced the opening of a new office in Bogota, Colombia to better serve business travel needs of clients in Latin American region.

Market Drivers and Restraints

Some of the key drivers propelling growth of the business tourism market are:

- Increasing globalization of businesses- Growing globalization and international business partnerships are driving demand for international corporate meetings, events and overseas travel among companies. This is a major factor supplementing growth of the business tourism industry.

- Rising disposable incomes- Growing disposable incomes particularly in emerging economies such as China, India and Brazil have increased spending power of middle-income group on business related travel and hotel bookings which is benefiting market growth.

However, factors such as political uncertainty and economic volatility pose challenges to the growth of business tourism market. Frequent changes in trade policies and regulations negatively impact international business collaborations and corporate travel decisions. In addition, risks of terror attacks, pandemic outbreaks and natural calamities deter many companies from authorizing international business trips. This acts as a market restraint.

Segment Analysis

Business tourism involves travel for business development purpose such as exhibitions, conferences and trade shows. The dominated business tourism segment is meetings, incentives, conferences and exhibitions (MICE) which contributes more than 50% of the overall market revenue. This is because MICE events play a crucial role in business decision making and networking. They are an efficient platform for companies to showcase their products and services, understand customers’ requirements and generate sales leads.

Global Analysis

Regionally, North America holds the largest share in business tourism market owing to presence of major global events industry players in countries like the US and Canada. Asia Pacific is projected to witness the fastest growth during the forecast period due to rising adoption of business tourism in developing economies of China and India for trade promotions. Europe is also among the prominent business tourism hubs globally with countries such as Germany, UK and France attracting large business events and exhibitions annually. Key growth drivers are growing globalization, expanding corporate spending and increasing number of international associations.

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