Only 35% of global business travel spending is booked by businesses with a travel management company, according to Euromonitor research commissioned by Navan.
The research also found that even among businesses that use the services of a TMC, a significant portion of travel spending still occurs outside these platforms.
According to the report, domestic and global businesses continue to book approximately 10% of their travel outside of these managed systems, representing an opportunity to capture additional savings and better manage costs.
It identified SMEs (businesses with 1-200 employees) as an attractive growth opportunity for managed travel solutions.
This segment is projected to achieve a CARG (compound annual growth rate) of 7.1% between 2024 and 2029, the fastest of any segment of the business travel market, and represented 26.1% of the business travel market in 2024.
SMEs also report one of the highest average frequencies of travel per employee.
The report is based on expert interviews, analysis of Euromonitor’s proprietary Passport database, and survey responses from businesses in the UK, US, Canada, France, Germany, India, Singapore, Australia, and the UAE.
“The size and scope of the global business travel market are large and growing. With global business travel spend projected to reach nearly US$2.9 trillion by 2029 and around 65% of that spend currently unmanaged, the research highlights a growing global opportunity,” said Amy Butte, CFO at Navan.
The research also predicts that bleisure will see rapid growth globally, particularly in the US where it is forecasted to grow 87% between 2024 and 2029, nearly doubling current levels.
