What Are Business Travel Expenses?

Business travel, also known as business trips, business trips, etc., is a subdivided concept in the tourism industry. It mainly involves transportation, migration, accommodation, sports events, cultural or catering events and banquets in the restaurant industry. The procedures during work are clearly related to the arrangements of the conference room and business center, such as some necessary facilities: paper, projector, screen, Internet connection, ppmeet, etc. Since boarding and lodging are usually paid by companies or other units at public expense, individual tourists can spend more on shopping and recreation. In recent years, business tourism is one of the fastest-growing tourism projects. In terms of its scale and development, it has become an important part of the world's tourism market and still has huge potential for development.

Business Travel

Business tourism, as an important part of the tourism industry, has maintained a faster development than the entire tourism industry since the 1980s. It is becoming a new trend in the development of global tourism. Compared with ordinary tourism methods such as sightseeing and leisure vacations, business tourism has many obvious advantages such as higher consumption levels, less affected by the off-season and climate, fixed activity locations, and repeated activity modes. The development of business tourism has become a city. An important support point for economic growth.

Great potential for business travel

The stable development of China's macroeconomic and political situation has provided a good external environment for business activities. Business tourism, as a high-end tourism market, has shown advantages and potential. A survey report by American Express shows that the development potential of China's business travel market is amazing and has reached the level of major European countries such as France and Germany. If the current growth rate is maintained, it will double in the next five years and become the world The third largest business travel market.

The vast majority of companies believe that business travel is an important part of corporate behavior, and more and more of them have begun to commission professional travel companies to provide related services in order to improve business travel management and resource integration capabilities, and save travel costs. In addition to relying on its service system support resources and rich experience to ensure that companies get timely and effective services and assist the target company in effectively implementing business travel policies, professional travel management companies can also provide target companies with other value-added services that are difficult to achieve. And better security management. Well-known professional business travel management companies include: HRG, Ctrip, CWT, American Express and so on.

Business tourism market segmentation characteristics

Similar to the consumer structure of business travel in other countries in the world, China's domestic business travel market is mainly composed of the following four sub-segments:

1. General business travel market

In this market segment, consumers are mainly engaged in commercial activities. General business travel activities include conferences and exhibitions (such as the World Expo, clothing festival, sugar and wine party, etc.), business negotiations, marketing, management (such as training, incentive travel) and other business travel activities. Among them, MICE tourism is an important feature of business tourism.

2.Government tourism market

Government officials are another market for business travel. China has the largest number of civil servants in the world, with more than 5 million people. The business travel generated by various conferences, inspections and research activities each year forms a market that cannot be ignored.

3. Academic tourism market

The academic tourism market is a market that has developed very rapidly in recent years. Under the background of the Chinese government's vigorous development of education and science and technology, regional and national academic exchange activities are increasing day by day. According to statistics from China Wanfang Data Corporation, there are more than 1,000 national academic conferences each year. There are even more countless regional academic conferences. With China's accession to the WTO and a large number of international academic conferences moved to China, this series of conferences contains huge business opportunities, and its stable periodic characteristics are indeed imaginative. Lian Pian.

4. Other business travel markets

This market mainly includes various large-scale sports events such as the World Cup and the Olympic Games, as well as other types of celebrations and commemorative events.

Market Share of Business Tourism Outsourcing

The source of business travel is mostly employees of major enterprises. Therefore, major business travel management companies have occupied important areas of the market through direct outsourcing management. The market share of major domestic business travel companies is as follows:

1. Ctrip Travel

The leader of domestic online travel. After entering the business travel market for the second time in 2006, the market share leaps and bounds. It is currently the first domestic market share and the best TMC in China in 2009.

Call Center: Shanghai

Main customers: Sony, Panasonic, Ericsson, Michelin, Coca-Cola, AMD, Baosteel, Haier, etc.

2. CITS America Express (AMEX)

China National Travel Service / American Express Joint Venture World's Largest TMC

Established in 2002

Call Center: Beijing (HQ) / Shanghai / Guangzhou

Main customers: Ford AT & T SAP China Netcom Microsoft IBM Philips GM GE MOTO Intel Unilever Adidas Siemens

American Express:

With a history of more than 100 years, the world's largest TMC and Fortune 500 companies.

60 to 70% of the Global Top 500, using business travel services of Express.

3. AVIC Jiaxin Business Travel Management Co., Ltd. (CWT) China Aviation Services Co., Ltd./Carlson Wagonlit Travel, the second largest in the world

Beijing (HQ) Shanghai / Guangzhou

Main customers: BP Siemens Alstom, etc.

4. Jinjiang HRG (HRG) HRG Jing Jiang China Jinjiang International Travel / HRG (HRG Holdings)

Shanghai (HQ)

Major customers: DuPont, Kodak, Cisco, etc.

5. BCD Travel Shanghai Jebsen Air Service Co., Ltd.

Major customers: 3M Volkswagen Danfoss Tetra Pak BOSCH, etc.

Jebsen has its own development team, independent research and development operation platform (Smart Agent) and customer booking platform (Smart Online), while providing various value-added services to meet corporate customer travel and business travel management.