Jakob Thygerson is an out of doors journey seeker, engineer and unrepentant gearhead with a background in product design.
In lots of industries, journey is an everyday necessity for enterprise. Even within the post-COVID age of telecommuting and Zoom conferences, firms are prepared to spend vital quantities on journey for in-person collaboration.
Why is that this the case? How a lot is spent on enterprise journey? The place does that cash go? What are the traits within the enterprise journey business? Who travels for enterprise, the place are they going, and the way lengthy are they staying? These are all key questions for understanding the enterprise journey business.
I’ve dug deep into information from key sources within the business, just like the World Enterprise Journey Affiliation, the Bureau of Transportation Statistics, and Expedia’s Bleisure Journey Tendencies Report. After intensive in-depth analysis, I extracted a number of key findings.
For many years, enterprise journey appeared very a lot the identical. As youthful individuals and ladies are touring extra for enterprise, and as extra individuals are including leisure time to their enterprise journeys, the panorama of enterprise journey is altering dramatically.
Key Enterprise Journey Statistics
- Over $1 trillion is spent yearly on enterprise journey worldwide.
- Enterprise professionals count on 25% extra income generated from in-person collaboration over digital conferences.
- China has the very best enterprise journey spending at $360 billion in 2022.
- The most important proportion of enterprise journey spending goes in the direction of lodgings, with meals coming in second.
- The common enterprise traveler is a 42-year-old male, however that’s altering as extra younger individuals and extra ladies are happening company journeys than ever earlier than.
Enterprise Journey Spending Statistics
In 2019 (earlier than the pandemic), the enterprise journey business accounted for $1.4 trillion in world spending. Whereas 2022 spending was nonetheless lagging as a consequence of pandemic restoration ($1.03 trillion), the World Enterprise Journey Affiliation (GBTA) predicts enterprise journey spending will surpass pre-pandemic ranges in 2024 and proceed to develop to $1.8 trillion in 2027.
With a lot being spent, the enterprise journey market is a big financial drive. Not solely does company journey inject cash into the tourism business and native economies, it additionally results in improved productiveness and earnings. Even on the planet of Zoom and telecommuting, the necessity for enterprise journeys isn’t going away anytime quickly.
It’s telling that firms carve out a big funds for company journey spending. Clearly, there’s an anticipated return on funding for firms to be prepared to make the spend, particularly for the reason that common enterprise journey is commonly dearer than leisure journey.
In response to the ACCOR Enterprise of Journey Report, enterprise professionals count on 25% extra income generated from touring for in-person collaboration over digital conferences.
It’s price understanding how a lot is spent on enterprise journey, the place that cash goes, and when firms resolve enterprise journey is price it.
Listed below are the important thing enterprise journey spending statistics to grasp the financial impacts of the enterprise journey business.
Enterprise Journey Spending by Nation
World enterprise journey spending is very concentrated in just a few international locations with industrial economies, with China and the USA far outpacing the remainder of the world.
Listed below are the highest 15 international locations for enterprise journey spending in keeping with the 2023 Enterprise Journey Index Outlook from the GBTA.
| Enterprise Journey Spending by Nation | |
|---|---|
| Nation | Spending (Billions USD) |
|
China |
$361 |
|
United States |
$329 |
|
Germany |
$70 |
|
Japan |
$65 |
|
United Kingdom |
$44 |
|
France |
$42 |
|
Italy |
$34 |
|
South Korea |
$33 |
|
India |
$32 |
|
Brazil |
$28 |
|
Spain |
$25 |
|
Australia |
$24 |
|
Netherlands |
$23 |
|
Canada |
$23 |
|
Indonesia |
$17 |
It’s no shock that, with just a few exceptions, these similar international locations are additionally the very best ranked for GDP. Apparently, Russia is the one nation within the high ten for GDP that doesn’t seem on this record.
Enterprise vacationers are virtually universally touring inside or between these 15 international locations.
The remainder of the world mixed solely provides $207 billion to the full world enterprise journey spending. As with many different metrics, this exhibits how a lot the world’s financial exercise and wealth is concentrated inside just a few areas. These 15 international locations make up solely about half the worldwide inhabitants, however they account for 85% of the worldwide enterprise journey spending.
Enterprise Journey Spending Classes
Enterprise journey might be damaged into a number of spending classes to see the place firms are spending essentially the most cash. The chart under exhibits the full 2022 spending throughout 5 classes in keeping with the GBTA.
|
Class |
2022 Spending (Billions USD) |
|
Different |
$121 |
|
Lodging |
$395 |
|
Floor Transport |
$138 |
|
Meals |
$191 |
|
Airfare |
$183 |
It’s simple to imagine that airfare could be the main expense for enterprise journeys. In actuality, it’s solely third on the record after lodging and meals. Lodging is the biggest spending by far for company journey, accounting for greater than double the quantity of another class.
Enterprise Journey Spending vs Leisure Journey Spending
Whereas enterprise journey is a big business, leisure journey is even greater. The desk under exhibits complete journey spending divided between enterprise and leisure journey in keeping with Statista.
| Leisure Spending | Enterprise Spending | |
|
United States |
75.4% |
24.6% |
| China | 84.4% |
15.6% |
|
Germany |
83.8% | 16.2% |
| United Kingdom | 70.8% |
29.2% |
|
Japan |
83.8% | 16.2% |
| France | 84.0% |
16.0% |
|
Mexico |
95.0% | 5.0% |
| Italy | 83.6% |
16.4% |
|
India |
95.3% | 4.7% |
| Spain | 88.1% |
11.9% |
| Brazil | 90.8% |
9.2% |
On common, solely 15.2% of journey spending comes from enterprise journey. 84.8% is from leisure journey.
Nevertheless, that breakdown will not be constant throughout all journey industries. Resorts, eating, and vacationer actions typically make rather more cash from leisure vacationers, however many airways really earn a bigger proportion of income from enterprise vacationers.
In response to Investopedia, solely 12% of airline passengers are enterprise vacationers. Nevertheless, as a result of enterprise vacationers pay larger charges, extra usually guide last-minute, and usually tend to fly first-class, they’ll account for as much as 75% of airline earnings.
Whereas many leisure vacationers attempt to save as a lot cash on airfare as potential, firms are sometimes extra more likely to spend additional for upgraded enterprise journey consolation.
Analysis from Enterprise Traveler discovered that 33% of worldwide enterprise journey flights are in premium class, and 13% of home enterprise journey flights are in premium class.
Whereas leisure journey is considerably bigger, enterprise journey spending remains to be a important part of the journey business.
Enterprise Traveler Demographics
Historically, the vast majority of enterprise vacationers match inside a really distinct demographic. The common enterprise traveler is a 42-year-old man.
However occasions are altering. Youthful individuals and ladies are touring extra for enterprise, and these traits will seemingly change what enterprise journey seems to be like sooner or later.
Listed below are the important thing enterprise journey statistics regarding traveler demographics.
Enterprise Traveler Age
Usually, individuals touring for enterprise usually tend to be in additional superior roles of their profession, and folks in management roles usually journey greater than others.
Enterprise Vacationers by Age
|
Age Group |
% Of Enterprise Vacationers |
|
18-29 |
16% |
|
30-39 |
28% |
|
40-49 |
27% |
|
50-59 |
18% |
|
60+ |
10% |
The overwhelming majority of enterprise vacationers are of their 30s and 40s—people who find themselves within the stage of working up the ladder of their profession. The common age for enterprise vacationers is 42.
Nevertheless, in keeping with market analysis by Skift, the typical age of enterprise vacationers is regularly shifting downward, and extra youthful individuals are touring for work.
This can have dramatic impacts on the enterprise journey market, as youthful vacationers desire Uber over taxis, trip leases over motels, and are much less more likely to make reserving selections based mostly on journey loyalty packages.
Enterprise Traveler Gender
Traditionally, company vacationers have dominantly been males. A Bureau of Transportation Statistics report discovered that 77% of enterprise vacationers that yr had been males.
Nevertheless, that development is starting to alter. The desk under compares 2001 gender breakdown with up to date 2022 statistics for enterprise vacationers.
Gender Distinction in Enterprise Journey Over Time
|
Males |
Girls |
|
|
2001 |
77% |
23% |
|
2022 |
63% |
37% |
In 2022, 37% of enterprise journeys had been made by ladies. That’s up 14% from the 2021 figures.
As workplaces around the globe make sluggish progress towards gender equality, ladies will take extra enterprise journeys than ever earlier than.
Apparently, whereas enterprise vacationers are more likely to be males, the other is true for leisure journey, in keeping with analysis by Forbes. The desk under exhibits a comparability of the gender breakdown in enterprise journey and leisure journey.
Gender Distinction in Leisure and Enterprise Journey
|
Males |
Girls |
|
|
Leisure Vacationers |
36% |
64% |
|
Enterprise Vacationers |
63% |
37% |
64% of vacationers on leisure journeys are ladies.
The demographics for enterprise and leisure journey should not aligned. The place the typical enterprise traveler is a 42-year-old man, the typical leisure traveler is a 47-year-old girl.
Clearly, ladies are extra apt to journey than males exterior the office, and the one motive that males usually tend to journey for work is because of total gender inequality in enterprise. It will likely be fascinating to see if ladies surpass males in enterprise journey as firms transfer in the direction of gender equality in workplaces.
Yearly Enterprise Journey Tendencies
As with most industries, enterprise journey has been rising steadily. As firms proceed to develop globally, worldwide collaboration will turn into extra vital, and enterprise journey will turn into much more important.
The desk under exhibits the worldwide enterprise journey spending over time from 2007 to 2022 in keeping with Statista.
| 12 months | World Enterprise Journey Spending (Billions USD) |
|---|---|
| 2007 | $887 |
| 2008 | $917 |
| 2009 | $865 |
| 2010 | $932 |
| 2011 | $1022 |
| 2012 | $1047 |
| 2013 | $1098 |
| 2014 | $1168 |
| 2015 | $1208 |
| 2016 | $1251 |
|
2017 |
$1325 |
| 2018 | $1408 |
| 2019 | $1412 |
| 2020 | $670 |
| 2021 | $690 |
| 2022 | $1017 |
Previous to COVID-19, the one current drop in enterprise journey spending occurred in 2009, in the course of the recession. From 2008 to 2009, enterprise journey spending dropped 5.7%.
Over the following 10 years, enterprise journey spending elevated by 63% and peaked at $1408 billion in 2019. This progress was adopted by an enormous drop, because the COVID-19 pandemic put a damper on journey.
From 2019 to 2020, enterprise journey spending dropped 53% as a consequence of pandemic journey bans.
Whereas the journey business as an entire has recovered rapidly from the pandemic, enterprise journey has had a slower return to pre-pandemic ranges in keeping with Deloitte Insights.
Nonetheless, progress is on the best way. World enterprise journey spending is predicted to surpass pre-pandemic ranges in 2024 and proceed to develop.
“Bleisure” Statistics
In recent times there was a rise in enterprise vacationers collaborating in leisure actions or asking so as to add additional time to their enterprise journeys to get pleasure from free time at their vacation spot. This rising type of enterprise tourism has earned the nickname “bleisure.”
Bleisure journeys ought to turn into a extra vital consideration for company journey managers when designing an organization’s journey coverage. When enterprise vacationers spend extra time as vacationers at their vacation spot, they’re extra more likely to see company journeys as a perk of their job slightly than a burden.
The Expedia Group performed a survey of over 2,500 bleisure vacationers worldwide, and I’ve unpacked the important thing statistics from their report that that you must know.
Bleisure Journey Size
Since bleisure includes combining tourism, downtime, and leisure with enterprise journey, no two journeys are the identical. There are particular traits within the bleisure market although.
The primary vital development is that bleisure is turning into more and more fashionable. On common, 60% of enterprise journeys embody time added on for leisure.
The size of a enterprise journey is vital for vacationers deciding whether or not so as to add on leisure time to company journey. The desk under exhibits a breakdown of bleisure vacationers based mostly on the size of keep for enterprise.
Enterprise Journey Size
|
1 Evening |
12% |
| 2 Nights |
39% |
|
3 Nights |
31% |
| 4+ Nights |
17% |
The big majority of enterprise journeys that flip into bleisure journeys are 2 or 3 nights. 50% of survey respondents mentioned they had been most definitely to increase enterprise journey for leisure in the event that they needed to keep 2-3 nights. This time solely consists of the enterprise journey portion of the journey, and most of the people including leisure time into a visit will spend a number of additional days.
When including leisure onto company journey, individuals spend 3.9 working days and a pair of.9 leisure days on common. Which means leisure time can practically double the size of a visit.
Bleisure Journey Vacation spot Statistics
Worldwide enterprise journeys and home enterprise journeys are equally more likely to turn into bleisure journey. 51% of home enterprise journeys are bleisure journeys, and 52% of worldwide journeys embody bleisure.
The vacation spot additionally issues for enterprise vacationers when contemplating including leisure time to company journey. The desk under exhibits the highest options of a vacation spot that make a enterprise traveler extra seemingly so as to add leisure time to their journey.
Bleisure Vacation spot Priorities
|
Meals/eating places |
56% |
| Seashores |
52% |
|
Pure sightseeing places |
51% |
| Climate |
50% |
|
Historic monuments/sightseeing |
49% |
| Museums/artwork/tradition |
41% |
|
Iconic/bucket record/should go to |
39% |
| Out of doors recreation |
34% |
In response to this analysis from Expedia Enterprise Group, good meals, seashores, pure sightseeing, and good climate are the highest issues that make for a well-liked bleisure vacation spot.
Bleisure Traveler Statistics
The variety of enterprise vacationers together with leisure in enterprise journeys varies by occupation. The desk under exhibits the highest 5 occupation classes for bleisure journey.
Bleisure Traveler Occupations
|
Know-how/IT/Software program |
24% |
| Manufacturing |
13% |
|
Finance |
12% |
| Healthcare |
8% |
|
Training |
6% |
By far essentially the most bleisure vacationers work in expertise, IT, or software program. Normally, expertise staff journey greater than most different professions, which is a key motive for why expertise staff usually tend to embody leisure time of their travels.
One other technique to characterize bleisure vacationers is by how incessantly they go away on enterprise journey.
Enterprise Journey Frequency of Bleisure Vacationers
| As soon as a Week |
5% |
|
3+ Occasions a Month |
9% |
| As soon as or Twice a Month |
23% |
|
As soon as Each 2-3 Months |
36% |
| As soon as Each 4-6 Months |
20% |
|
As soon as a 12 months |
7% |
| Lower than As soon as a 12 months |
<1% |
Most enterprise vacationers including leisure to a company journey are those that take enterprise journeys each 2-3 months. The common bleisure traveler takes 6.4 enterprise journeys every year.
Sources and Methodology
This report is predicated on a complete and in-depth evaluation of enterprise journey spending, demographics, geographic traits, and yearly traits. I gathered this information from market analysis corporations, tutorial research, and authorities businesses.
The GBTA 2023 Enterprise Journey Index Outlook, ACCOR Enterprise of Journey Report, and Expedia’s Bleisure Journey Tendencies Report had been key sources of data for understanding the panorama of enterprise journey and the traits within the business.
Different key sources for the enterprise journey traits and demographics on this report embody the World Enterprise Journey Affiliation, Bureau of Transportation Statistics, Statista, Forbes, Enterprise Traveler, and Investopedia. Any sources not included listed here are cited instantly within the textual content.
There’s a great quantity of data and information out there throughout these sources, however it’s disjointed and infrequently tough to interpret. I compiled uncooked information and particular person findings from these sources right into a single cohesive useful resource.
I used this wide selection of data to generate the tables, graphs, and statistics on this report.
Closing Enterprise Journey Findings
Journey is a key a part of many companies. It drives innovation, improves productiveness, and will increase earnings. Whereas COVID-19 created a brief pause, enterprise journey is again, and can solely be rising.
Enterprise journey solely accounts for about 15% of complete world journey spending, however it’s a key market phase for a lot of industries, particularly airways. Enterprise vacationers usually tend to fly premium class and spend extra on journey total.
There are additionally a number of key elements driving change within the enterprise journey business. Enterprise journey has historically been a male-dominated exercise, however increasingly more ladies are touring for enterprise. Youthful individuals are additionally touring extra for enterprise than ever earlier than. Extra individuals are creating “bleisure” journeys by including additional days for leisure onto enterprise journeys.
If firms can latch onto these traits and create supportive and inclusive journey insurance policies, enterprise journey can turn into each extra worthwhile to firms and extra rewarding for vacationers.
Enterprise Journey Statistics FAQs
Is enterprise journey rising?
Whereas enterprise journey nonetheless hasn’t recovered to pre-pandemic ranges, it’s steadily rising.
What proportion of flights are enterprise journey?
On common, round 12% of the passengers on a flight are touring for enterprise.
How large is the enterprise journey market?
In 2022, the enterprise journey business accounted for $1 trillion in spending globally.
What firms spend essentially the most on enterprise journey?
Amazon is the corporate that spends essentially the most on enterprise journey.
Which industries have essentially the most enterprise journey?
Tech and IT industries have essentially the most enterprise journey.