Travel Risk Management Services Market Expected to Reach $223.62 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Travel Risk Management Services Market," The travel risk management services market was valued at $96.26 billion in 2021, and is estimated to reach $223.62 billion by 2031, growing at a CAGR of 8.1% from 2022 to 2031.

Travel risk management services industry is gaining a huge popularity as the business professionals and executives are planning more business tours globally to ensure their business’s health and growth. Providing security and seeking for data safety are few of the travel risk management services market trends. The professionals and their organizations are performing robust efforts to secure their employees business tours and company’s security in the modern landscape of business risks. Business travel or business tourism refers to the activity of travelling or journey that is done for various business purposes such as meetings, negotiate deals, networking, trade shows, and exhibitions. Business travel is done mainly for building partnerships, joint ventures, meeting suppliers and customers, maintaining relation between companies, and promotion of product or service. The development and growth of various online travel agencies (OTA) such as booking.com, KAYAK, and Expedia, are contributing toward the growth of the global business travel market by providing relevant services and risk management solutions. Moreover, the global travel risk management services market growth is driven by the expansion of the travel & tourism industry, surge in government initiatives for the development of MICE (meetings, incentives, conferences, and events) segment & SME sector, and increase in globalization of business.

The trending factors responsible for fueling the demand for travel risk management services market size include weather uncertainty, cyber frauds, accidental risks, health risk of the employees during the tour, and others. The buyers are becoming more concerned regarding their employees and business risks and opting for adequate and best deals on travel risk management services in the market.

According to the Global Business Travel Association (GBTA), the global business travel spending plummeted 52% in 2020 and the losses are 10 times larger than the Great Recession of 2008. The business travel spending fell by around 60% in North America, in Europe by 78%, and in Asia-Pacific by 48% in 2020. The overall global business travel spending fell by around 52% resulting in huge revenue losses to the players operating in the business travel market. The government tried to bring in COVID-19 measures to revive the falling business travel industry. For example, the Health Ministry of Singapore announced to increase capacity limits for MICE events to 750 people from 250 people in April 2020. This move was appreciated by the Singapore Association of Convention and Exhibition Organizers and Suppliers (Saceos). According to the president of Saceos, it was the most needed step to re-open and restart the MICE industry. However, there were few market players who were much concerned about the increased costs due to the expansion of capacity limits. The impact of COVID-19 on the business travel market was directly related to travel risk management services market demand as the number of international arrivals decreased in the pandemic.

Other significant factors that promote the growth of the Travel Risk Management Services Market share are change in preferences of business leaders to seek bleisure trips, rapid urbanization, and industrial growth. The current trend of online booking option of risk management services have increased the convenience of the business travelers, which is further anticipated to boost the market growth. Moreover, infrastructural development and expansion of retail business fuel the growth of the industry.

Key findings of the study

• On the basis of service type, the crisis management segment is projected to witness the highest CAGR of 9.1%, in revenue terms, during the forecast period.
• On the basis of enterprise size, the small enterprise is expected to grow at a CAGR of 8.8% during the forecast period.
• On the basis of industry, business services and consulting is expected to grow at a highest CAGR of 10.0% during the forecast period.
• On the basis of region, the US was the largest country in North America, in terms of revenue generation for travel risk management services market in 2021.