Travel Management Software, typically, acts as a booking engine for air/train/bus travels, insures travel policy compliant behaviour and records all travel related expenses efficiently including planning, purchasing and other expenses. Businesses and corporates worldwide use travel management tools to streamline decisions, keep travel budget under control, establish adherence to compliance policies & decisions (while maintaining the discernibility between employees and managers) and manage expense reimbursement & reconciliation for the travel expenses.
The myriad of advantages that Travel Management tools offer is indispensible in the management and maintenance of travel records. The phenomenal growth of internet of things (IoT) has taken travel management software to a new high in the global market.
The kind of traction that the market has been gaining has put Travel Management Software (TMS) in good stead. A study by Market Research Future (MRFR) indicates that the TMS market will expand rapidly to the tune of USD ~1 Billion by 2023, clocking a CAGR of ~8% during the forecast period between 2017 and 2023.
TMS solutions can easily fit into mobile applications, and this means users can manage reports virtually from any device. Mobile apps, in recent times, have been the single most driving factor of the Travel Management Software (TMS) market with a robust, convenient and secure platform that is easily accessible anytime and anywhere across a gamut of devices. It is mainly the convenience factor that has resulted in the continued growth of the market.
Also, the fast growing eCommerce sector globally backed by improved logistics supply, providing on-time delivery has been a fillip to the market growth of TMS. Other favourable factors include increasing industrialization and urbanization worldwide. Improving economic conditions, which increase consumers ‘affordability, globally help accelerate the growth of TMCs, worldwide.
Some of the bigger challenges confronting the TMS industry, as per the MRFR studies over the forecast period, include security concerns and lack of expertise in installation associated with running cloud-based software. However, the rise in the demand for the software along with the increasing uptake of Travel Management Software can bolster market growth.
The report factors in four key segmentation areas, the discussion of which will be beyond the scope of the blog, include Component, Industries, Deployment and Application.
Travel Management Market –Regional Analysis
North America, which claims the biggest market pie, leads the global TMS market over the forecast period. The Europe market is a close second, with UK, Germany, France & Italy slated to register the highest CAGR in the coming years. The Asia Pacific regions, including China, India and Japan, is found to be the fastest growing markets for TMS and are poised to grow rapidly in the next 6 years. These regions have shown significant growth in industrialization and economy contributing to the demand of TMS market. The growing number of Start-ups and SMEs is another important factor conducive to the development of the travel management market.