A new study from market researcher Allied Analytics shows that the travel risk management services industry is growing exponentially, as business professionals and executives plan more business tours globally. Trending factors that are fuelling demand include extreme weather, cyber fraud, accident risk, and the health and wellbeing of employees. Buyers are becoming increasingly aware of risk factors and are seeking adequate travel risk management services for their employees and businesses in response.
According to Allied Analytics, further factors contributing to the market’s growth include business leaders seeking ‘bleisure’ (business and leisure) trips, rapid urbanisation, industrial growth, infrastructural development and the expansion of retail business. Meanwhile, the online booking option for risk management services has enabled convenience for business travellers looking to mitigate risk.
Key findings
- The crisis management segment crucial to travel risk management services is projected to witness the highest compound annual growth rate (CAGR) of 9.1%, in revenue terms, during the forecast period through to 2031
- The small enterprise segment is expected to grow at a CAGR of 8.8%
- Business services and consulting are expected to grow at a highest CAGR of 10.0%.
Growth prospects and demand trends
- Globalisation and business travel: As more employees travel to unfamiliar international destinations, the demand for travel risk management services to mitigate risk grows
- Security threats and risk awareness: Heightened security threats, including terrorism, political instability, natural disasters, and health emergencies such as pandemics, have amplified the importance of the service
- Technological advancements: Companies are leveraging innovative solutions such as real-time traveller tracking platforms, mobile apps for emergency communication, data analytics for risk assessment, and artificial intelligence (AI)-powered risk prediction models to enhance their travel risk management capabilities
- Regulatory compliance: Compliance with regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the US and the General Data Protection Regulation (GDPR) in the European Union drives the adoption of travel risk management services
- Emerging markets: Emerging markets present lucrative opportunities for travel risk management service providers as companies expand their operations into regions with unique risk profiles. These markets often lack infrastructure and expertise in managing travel risks, creating a demand for specialised services.
Earlier this year, Stéphan Malvoisin, Senior Vice President, Partnerships, US, at Crisis24, talked ITIJ through managing the top travel risks of 2024.