China’s business travel industry is projected to experience accelerated growth in the coming years, according to an international business travel study.
The Global Business Travel Association (GBTA) predicts that China's business travel index (BTI) will be 672 in 2024, slightly below the 2019 level. However, this index is expected to continue rising over the next three years, reaching a high of 928 by 2028.
In a recent interview by TravelDaily China, Haichuan Yao, Chairman of Tripwise, a leading travel management company (TMC), noted that companies have shown a significant increase in their willingness to pay for technical services in recent years. This shift—from seeking "free use" to paying for technical value—is largely driven by the need for cost reduction and efficiency improvement through refined management practices.
As corporate needs continue to evolve, so does the competitive landscape of the business travel industry.
Haichuan Yao said that in recent years, internet giants, traditional TMCs and regional travel groups have all entered the corporate travel sector. With an increasing number of new players in the market, corporate clients now have a wider range of choices. However, the traditional TMC model in China, which relies on pre-financing corporate travel expenses, is proving unsustainable in the long run.
Tripwise is not concerned about this. “80% of our clients are willing to prepay. We don’t compete by fronting funds; instead, we retain clients through our products and technology,” Haichuan Yao stated. This not only reduces cash flow risks but also means that more resources can be invested in technological upgrades and service optimization.
By leveraging technological innovation and capitalizing on market trends, Tripwise has experienced rapid growth in recent years. According to Yao, the company’s revenue is expected to grow by over 50% in 2024, with net profits more than doubling. This growth is primarily driven by an expanding client base and increased revenue from technology service fees.
The global expansion of Chinese companies is an undeniable trend, raising higher demands on TMCs’ supply chain and service capabilities.
Beyond traditional business travel services such as flights, hotels, and car rentals, companies now have strong demand for services like car-hailing, food delivery, and business dining. However, most Chinese TMCs still struggle with limited supply chain capabilities in international markets.
Moving forward, the ability to harness technology to improve efficiency, optimize service experiences, and capture opportunities in global markets will be central to the development of the business travel sector.
