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customers in person has often been an efficient and successful way to personalize transactions with
current customers and develop relationships with new individuals. Business travel is a subset of
tourism in which people travel for business purposes. Transportation, lodging, business work,
entertainment, and other activities are all included. The global
hospitality and tourism sector is one of the largest, contributing more than $9000 billion to the
global economy. The global travel and tourism sector contributed approximately $9.2 trillion to the
global GDP in 2019, according to the World Travel and Tourism Council (WTTC). A strong economy, a
growing middle class, rapidly evolving innovative technologies, and the entry of millennials into the
workforce are all factors driving business travel in India.
Business travel is becoming a determinant of growth in the travel and tourism industry all over the
world. Business travel accounts for one-fourth of the total economic impact of the travel and
tourism industry. The coronavirus (COVID-19) pandemic turned the tourism industry upside down in
2020, as travel bans and emergency measures put in place to face the health crisis disrupted normal
travel. As a result, the global business travel spending dropped by 61% in 2020 over the previous
year, reaching 504 billion U.S. dollars, whereas it amounted to 1.29 trillion U.S. dollars in 2019. In
fact, emerging and developing markets have experienced higher growth rates in business travel at
3.7% annually over the past few years before 2020. According to the Global Business Travel
Association, India's annual growth in business travel expenditure is 11.4 %, the highest among the
top 15 business travel markets worldwide. According to consulting group KPMG, India is now at a
$30 billion business travel market that is expected to triple by 2030. According to IBEF research, “The
tour and travel industry in India employed 41.6 million people in 2018 and is expected to increase by
2% per year to 52.3 million by 2028." Being away from friends and family and routine can be
stressful for some employees. However, not everyone considers travel to be a burden. 30% of
workers (and 43% of Indians) would accept lower pay in exchange for more business trips.
(Booking.com for Business) According to a survey by Trip Actions, 39% of Millennial and Gen Z
workers would refuse a job that did not allow them to travel and 90% of respondents believe that
business travel is critical to company growth and a whopping 92 percent of business travelers enjoy
their quality of life while on the road.
Overall, the European Union spent the most money on business tourism in 2020. The total
expenditure on business trips in the EU by domestic and international travelers in 2020 was
approximately 114.6 billion US dollars, down from 258 billion US dollars in 2019. The United States
and Japan came in second and third, with business travel spending of approximately 109.4 and 58.5
billion US dollars in 2020, respectively.