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Business Travel Statistics 2019

 

Everything you need to know on International Business Travel Statistics, Destinations, Spending & Top Business Travel Trends.

 

Business travellers make up a large proportion of the total travel and tourism industry globally. International travel statistics suggest that 1.3 million people travel for business every day in the U.S. alone. Business travel has grown globally with 2017 seeing $1.3 trillion being spent towards this area, with a predicted increase to $1.6 trillion in 2020 and an even further increase to $1.7 trillion in 2022.

 

As you’ll see from the data below, businesses believe that travel adds to company growth and most employees see the opportunity to travel as a perk.  This may be due to travellers using the travel opportunity to mix business with leisure. This can be seen with 40% business trips being extended for leisure purposes with 80% of employees trying to incorporate leisure activities in the trip duration.

TOP BUSINESS TRAVEL STATISTICS:

1.3 million people travel for business every day in the U.S. alone.

The number of female business travellers is growing by the day. In the US, 45% of people traveling for business are women.

Bleisure — the industry buzzword for travellers combining business and leisure — is on the rise, growing 20% from 2016 to 2017.

More than 40% of business trips are extended for leisure purposes.

Business travel is expected to grow to $1.6 trillion in annual spend by 2020.

The year 2017 saw $1.3 trillion spend on global business travel.

Business travel spending is expected to top $1.7 trillion USD by 2022.

Americans go on over 400 million long-distance business trips annually.

Most business trips are less than 250 miles in length.

It’s estimated that fewer than 7% of business trip destinations are more than 1,000 miles away from their point of origin.

Almost 20% of all travel is business-related.

 

BUSINESS TRAVEL INDUSTRY TRENDS & STATISTICS

How many people travel for business a day?

1.3 million people travel for business every day in the U.S. alone.

400 million Americans go on long-distance business trips annually.

Just under 20% of all travel is for business.

12% of airline's passengers are made up by business travellers.

75% of airline travel profit is made by business travellers.

40% of hotel guests are business travellers.

Over 700,000 businesses used Airbnb for work-related travel in 2018.

28.4% of all travel and tourism revenue comes from business travel.

In 2018, business travel spending was expected to grow by 7.1% and it is expected to top $1.7 trillion by 2022.

The number of people who travel for business is on the rise with 1.3 million business travellers every day in the U.S. With 400 million U.S long-distance business trips a year, the profits that can be made from this opportunity are significant, accounting for 28.4% of all travel and tourism revenue. Hotels see a great result from this, with 40% of their total guests being business travellers. Airbnb is also gaining from this with over 700,000 businesses using the accommodation found through the site for work-related travel. Airline companies see a huge benefit from business travellers because although only 12% of airline travellers are flying for work-related purposes, 75% of the airline profit comes from this. This can be due to higher pricing in business-class seating and more onboard spending.

 

Sources: HRdrive.com, Purplepassport, Financesonline

BUSINESS TRAVELLER DEMOGRAPHICS

Who travels the most for business?

45% of people traveling for business in the U.S are women.

2/3 of corporate travellers have a bachelor’s degree with an average household income of $82,000.

50% of business travellers are older than 45 years old.

60% of business travellers are male.

50% of business travellers from Europe go on trips alone.

50% of European corporate business trips are for parties of two or more.

28% of business trips are employees in sales or service workers.

53% of business travellers are in roles who consider their occupation to be professional, managerial, or technical.

About 55% of all business trips are made by individuals aged 30 to 49.

When it comes to who travels the most for business, there is no set answer. Statistics seen in the business travel demographics suggest that there is a slight lean to more male travellers than female with males making up 60% of the total. Over half of business travellers having professional, managerial or technical roles agrees with the majority of business travellers having bachelor degrees and an average household income of $82,000. There is an even split between solo travellers and pair/group travellers.  

 

SourcesTravelperk, bts.gov, Financesonline

MILLENNIALS BUSINESS TRAVEL STATISTICS

How have millennials changed business travel?

65% of millennial business travellers view corporate trips as a status symbol.

69% of business millennials want to extend their trip for leisure.

56% of millennials create reasons to go on business trips.

4 trips every year is the average amount of business travel for a millennial.

85% of companies in the tech industry book budget flights instead of choosing business class seats in order to save money.

78% of millennials make time for leisure on business trips.

Millennials have redefined business travel through the 65% viewing corporate trips as a status symbol. This perception could account for the 56% of these business millennials that make up reasons to go on work-related trips. With the large number of millennials wanting to travel for business, comes the increased ‘bleisure’ holiday with 78% of these business-travelling millennials making time for leisure on their trips. Business travel for millennials is in high demand with the average millennial making 7.4 business trips every year.  

 

SourcesFinancesonline

TOP BUSINESS TRAVEL DESTINATIONS

What are the most popular business travel destinations?

Most business trips are less than 250 miles away from the point of origin.

Less than 7% of business trip destinations are more than 1,000 miles away from their point of origin.

U.S. travellers took 462 million domestic business trips in 2008 and this figure is forecasted to rise to 499.4 million by 2022.

There was a 0.7% decrease in business travel going into the UK in 2017.

Corporate travellers in Asia account for more than a third of all business travel.

Shanghai, Tokyo, Bangkok, Guangzhou, and New York are the fastest-growing destinations for business travel.

China and the U.S. were the top markets in terms of business travel spend, followed by Germany, Japan, and the U.K.

New York City is the most common business travel destination.

40% of hotel guests are business travellers.

Popular cities for business travel are Shanghi, Tokyo, Bangkok, Guangzhou, and New York, with New York being the most common destination for business travel. When it comes to the most money spent on business travel, China and the US were the destinations with the most money put towards work-related travel, with Germany, Japan, and the UK following behind.  Business travel is more prominent in locations that are within 250 miles from their point of origin, with only 7% of the destinations being over 1000 miles away. These closer-destinations account for 462 million domestic business trips in the US during 2008 and this number is predicted to rise to 499.4 million by 2022. In 2017, there was a slight decrease in business travel going into the UK of 0.7%, and this may be due to the growing business destinations of Shanghai, Tokyo, Bangkok, Guangzhou and New York pulling the market away.

 

SourcesDollarsprout, Travelperk, Spendesk

BUSINESS AND LEISURE TRAVEL STATISTICS

How do people combine business and leisure travel?

Bleisure trips (trips combining business and pleasure) have increased by 20% from 2016 to 2017.

Over 40% of business trips become extended for leisure purposes.

41% of business travellers enjoy exploring new places and cultures, this is more than meeting with clients and teams (17%).

80% of corporate travellers try to fit in leisure activities while on a business trip.

Employees want the flexibility to extend their trips for leisure (34%) and given a budget for exercise and similar lifestyle activities during the trip (24%).

Employees would like their companies to provide a budget for extracurriculars (74%) and give them the option to bring a guest on the trip (38%).

37% of business travellers say that leisure activities should have an equal length as business activities during a corporate trip.

Leisure travel combined with business travel has increased by 20% from 2016 to 2017. This is no surprise due to only 17% of business travellers enjoying meeting the clients and teams, compared to 41% travellers who enjoy exploring new places and cultures. To include more leisure within their business travel, 74% employees would like their companies to provide a budget for extracurricular activities and 38% of them would like the option to bring a guest on the trip. When it comes to the balance of leisure and work on the business trip, 37% business travellers would like their leisure activities to be of equal length to the business activities. With 80% of corporate travellers aiming to fit in leisure activities on a business trip, there is a market for bleisure.

 

 

SourcesNBT World, Financesonline

THE REASONS & BENEFITS OF BUSINESS TRAVEL: STATISTICS & TRENDS

Why is business travel important for businesses and employees?

90% of professionals believe that business travel is valuable to company growth.

79% of employees say that business travel impacts their overall job satisfaction.

3 in 5 job seekers in the USA say that being able to travel via work plays a crucial role in considering an employer.

83% of employees say that business travel is a job perk.

62% of employees go on business trips to attend conferences.

30% of business travel is to pitch new products.

40% of business travel is to meet with coworkers in a different location.

44% of business travel is for professional development.

56% of business travel is to meet with other companies for business planning.

Approximately 28% of current business would be lost if there was no business travel.

Companies gain $12.50 in revenue for every dollar invested in business travel.

30% of employees would accept lower salaries in exchange for more business trips.

90% of business travellers agree that business travel is essential to company growth.

39% of Millennial and Gen Z workers wouldn’t accept a job where they can't travel.

Statistics show that face-to-face meetings are 34 times more powerful than remote, virtual conversations.

The increased number of business trips suggests that there must be many advantages to business travel. Statistics show that face-to-face meetings are 34 times more powerful than remote conversations and may give a reason as to why 90% of business travellers agree that business travel is essential to company growth. Spending money on business travel is shown to be worth it, approximately 28% of current business would be lost if businesses chose not to travel for business, companies also gain $12.50 in revenue for every dollar invested in business travel. Business travel allows employees to meet coworkers in different locations, pitch products, attend conferences and more so the loss of this ability would cause a major drawback to the company. Additionally, 79% of employees say that business travel impacts their overall job satisfaction and 3 out of 5 USA job seekers would be influenced by this ability in choosing a job which suggests those who travel for business are happier employees.

 

SourcesFinancesonline, Travelperk, FitSmallBusiness, Spendesk

BUSINESS TRAVEL INDUSTRY SPEND STATISTICS

How much is the business travel industry worth?

Business travel is expected to grow to an annual spend of $1.6 trillion by 2020.

$1.3 trillion was spent on global business travel in 2017.

$325 is the daily cost of business travel in the US.

$1425 is spent for every employee sent on business trip.

$180 per night is the average cost of a hotel.

21% of business travel spend accounts for meals, while flights account for 17%.

The business travel industry is an area with big spending potential. The average amount spent on business travel is $1425 for every employee sent on a business trip, with $325 being the average cost of business travel per day. The annual spend of business travel is expected to increase from $1.3 trillion in 2017 to $1.6 trillion by 2020. Most of the business travel spending is on meals (21%), compared to 17% that accounts for flights. This aligns with the fact that most business trips are less than 250 miles away from the point of origin and would, therefore, have cheaper shorter flights. Less than 7% of business trip destinations are more than 1,000 miles away from their point of origin so there is only a small percentage of spending towards long-haul flights.

 

SourcesAlltopstartups, Financesonline, Travelperk

BUSINESS TRAVEL TECHNOLOGY & SOCIAL MEDIA STATISTICS

How does technology affect business travel & bookings?

48% of U.S. travellers use their mobile phones to book, plan and research their business trip.

Over 70% of travellers in the US use their smartphones when traveling.

Majority of modern travellers (57%) want to have a single application to manage their planning and booking needs.

31% of travellers like the idea of using voice-activated apps for their travel queries.

80% of business travellers prefer to use automated digital expense reporting for their trips.

55% of business travellers expect to go on completely cashless trips within a decade.

1 in 5 business travellers wants to use augmented reality so that it is easy to check out their destination before a trip.

79% of business travellers predict that using virtual reality tech for accommodation will be normalized in the next 10 years.

81% of business travellers expect hotels to use virtual, reception-free check-in processes in the future.

55% of business travellers would allow their employers to use GPS tracking to monitor their location during out-of-town trips.

71% of business travellers wouldn’t post about a business trip on social media.

Technology is a significant platform for researching, planning and booking business trips with 48% of US travellers using their mobile phones to book, plan and research their trip. The use of technology when it comes to checking in to accommodation and doing research on destinations is predicted to increase with 81% of business travellers expecting to see hotels use virtual, reception-free check-in and 79% business travellers predict that virtual reality technology will be normalized to explore accommodation options in the future. 70% of business travellers use their smartphone while travelling and 80% of work travellers would prefer to use automated apps to calculate their business expense, this demonstrates the importance of the use of technology and business travel. Despite the use of technology in business travel, links between business travel and social media posts are not shown to be on the rise with 71% employees saying they wouldn’t post about a business trip online. 

 

SourcesFinancesonline

BUSINESS TRAVEL BOOKING TRENDS & HABITS

How do people travel and book business travel?

Booking a direct flight is the most important factor that influences which flight a European corporate business traveler will book.

26% of them choosing a direct connection as the top factor, 19% choosing price, 23% choosing schedule convenience and 20% choosing airport location.

79% of travel industry businesses increased in revenue when they provided live chat.

28% of millennial business travellers book hotels directly on a hotel’s website.

10% book hotels through an online travel agency, 7% book with a third-party reseller like Kayak and 14% book with a travel agent.

700,000 companies now use Airbnb for work.

16% of business trips are taken in airplanes.

For business trips between 750 and 1,500 miles, 85% travel by air and for trips more than 1,500 miles, 90% are made by air.

Travel websites offering a live chat feature increased 79% of their revenue when business travellers were making bookings. 48% of U.S travellers using their mobile phones to book, plan and research their trips mean that online booking platforms are a popular way to book business travel. Only 16% of business trips are taken in airplanes, however, for the trips that are over 1,500 miles, 90% of the trips are made by air, concluding that air is the most popular form of transport for long-distance journeys. When it comes to booking a flight, for 26% travellers, booking a direct journey is the most important factor influencing which flight to book with 19% choosing price, 23% choosing schedule convenience and 20% choosing airport location.

 

SourcesTravelperk, FitSmallBusiness

BUSINESS TRAVEL INSURANCE STATISTICS

What percentage of businesses offer travel insurance for business travel?

40% of businesses don’t have a travel policy.

60% of business travellers don’t understand the need for a company travel policy.

More than 50% of business travellers are allowed by companies to book their trip however they prefer.

27% of business travellers say that their company’s travel policy is poor.

52% of employees say that their company’s travel policy only slightly aligns with their company culture.

69% of business travellers comply with their company’s' travel policies.

Business travellers often book accommodations out-of-policy because they are not close enough to the destination (37%) or because they found a better hotel within their budget (37%). 

Despite only 60% of business having a travel policy, 31% of business travellers don’t even comply with them. This may be due to 27% of business travellers saying that their company’s travel policy is poor and 52% of employees saying that their company’s travel policy only slightly aligns with their company culture. Business travellers may often book their accommodations out-of-the-policy for several reasons such as the location and the budget.

 

SourcesFinancesonline

INTERNATIONAL BUSINESS TRAVEL STATISTICS: ISSUES WITH TRAVEL

What are the most common problems business travellers face?

2% of business travellers are concerned about delayed flights.

8% of business travellers worry about limited airplane seat availability.

41% of business travellers concerned about earning frequent flyer points.

27% of business travellers say that the most tiring aspects of business travel are the waiting time.

25% of business travellers worry about having no direct flights.

4% of business travellers worry about ease of passing through security.

22% of travellers feel that the ride to and from the airport is tiring.

16% of business travellers find early or late departures/arrivals exhausting.

Despite 83% of employees seeing business travel as a perk, there are some negatives involved with travelling for work. 16% of business travellers find the early or late departures tiring, and 73.2% of business travellers are concerned about delayed flights. Although the option to have a direct flight is influential in the travel-making decision, only 25% of business travellers worry about having no direct flights.

 

SourcesFinancesonline