TRIPFEZ Travel & Tours Sdn Bhd Managing Director Faeez Fadhlillah said the business travel industry had rebounded at a much faster rate than projected and was expected to surpass the pre-pandemic level by mid 2024 and reach US$1.4 trillion by the end of 2024.
“The Muslim corporate travel market sees similar trends and is expecting to reach US$420 million in total spending by 2024. This represents a staggering increase of 32 per cent in 2023 and 47 per cent in 2022. The rapid growth of business travel is backed by strong consumer demand and rapid economic growth in 2023.
“In Malaysia, Muslim corporate travel showed similar growth trends, with many corporate companies resuming their travel spending and ceasing the work-from-home policy.
“2023 also saw increased competition in supply with many airlines resuming and increasing routes, and many new hotels popping up after three years of stagnant growth due to the movement control order restrictions.”
Faeez noted one trend observed in 2022 was the increased demand for takaful-based travel insurance in line with many corporate companies’ increased focus on Islamic finance, especially amongst GLCs and MNCS in Malaysia.
“Thirty-one percent of corporate companies are currently using Takaful-based travel insurance for their employees’ corporate travel, with 37 per cent indicating the desire to switch from conventional-based travel insurance to takaful-based travel insurance. This trend is expected to give rise to the growth of takaful travel insurance volume in 2024.”
