Business tourism fast transforming local and global economy these days
‘Bleisure tourism’ catching up all over
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“Business tourism represents one of the oldest forms of tourism, man having travelled for the purpose of travel since very early times” (cited in Bathia, 2006, p.272).
To elaborate it further, business tourism is a means of travel that is primarily for a work-related activity.
There is a strong and correlative relation between a country’s economy and business tourism.
Globalization was one of the factors that led to popularity of business trips given their importance in the global economy. Nowadays, business tourism is one of the fastest growing forms of tourism with a significant role in the global market.
Moreover, according to the United Nations World Tourism Organization (UNWTO) dictum, business is an integral sector of tourism economy.
Business travellers are less cost sensitive when it comes to their expenditure as they themselves generally devote only a fraction of the cost. Research has shown that business travellers spend up to four times more than any other type of tourists. In fact, early research by Davidson and Cope discovered that the ratio of daily expenditure by business travellers to that of leisure is generally between 2:1 and 3:1.
Therefore, business tourism provides significant contributions to the local and global economy. It promotes development for advanced infrastructure and transportation systems, which, in turn, benefit other forms of tourism apart from the local population.
Business tourism supports the hospitality industry across segments. Leisure tourism gets a boost as business travellers tend to combine both activities together. This is referred as ‘bleisure tourism’, the combination of ‘business’ and ‘leisure’.
Exhibitions offer opportunities for businesses to connect with the international industry community. The exhibition industry draws two groups of people: those with something to sell and those who attend with a view to making a purchase of getting information. Exhibitions come in all shapes and sizes depending on a person’s area of interest or work. Relevant travel exhibitions in recent years, included ITB in Berlin and The World Travel Market in the UK.
Often in the business tourism literature you will come across the term MICE, which implies ‘Meetings, Incentives, Conferences and Events’. The term MICE has been endorsed as ‘The Meeting Industry’ by the United Nations World Tourism Organisation.
MICE industry contributes significantly to the wider business tourism sector. It is becoming increasingly recognised as a prominent part of the industry and is beginning to receive growing attention amongst the academic community. Although, there are a variety of business tourism destinations, this type of tourism is predominantly situated in global north countries, which are developed and have the means to provide well equipped resources and infrastructure. This makes business tourism easily accessible and thus a preferred choice for business travellers.
Despite the challenges facing the business travel industry, the outlook for 2023 is beginning to look promising. According to the Deloitte 2023 Travel Outlook report, business travel is expected to rebound in 2023, with a projected increase of 60% compared to 2022. Moreover, businesses will prioritize in-person meetings, conferences, and events, and that travel will become a crucial part of corporate culture. The focus is on safety and security. Risk management will become a critical aspect of travel management.
Technology will also play a significant role in the future of business travel. The pandemic has accelerated the adoption of technology, and businesses will continue to use technology to manage their travel arrangements. Virtual meetings and conferences will also become more prevalent, and businesses will need to find ways to integrate virtual and in-person meetings seamlessly.
The outlook for business travel in 2023 is challenging, but not all hope is lost. Corporate companies, hotels, and airlines can succeed by adopting sustainable travel policies, using technology to manage travel arrangements, offering flexible working arrangements, collaborating with travel suppliers, prioritizing health and safety, creating unique travel experiences, and embracing technology and innovation.
While the challenges facing the business travel industry are significant, they also present an opportunity for companies to differentiate themselves and provide value to business travelers. By adapting to the changing landscape, companies can succeed and thrive beyond 2023.
