Business travel forecasted 5% growth
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Europe’s top five travel markets are expected to see a 5% increase in business travel this year with a further boost in 2016, a new report has found.
Corporate travel originating in the UK, Germany, France, Spain and Italy is expected to rise 5.1% this year and then 6.5% in 2015 as confidence comes back to the economy and business.
A north-south divide is still apparent meaning the UK and Germany will lead the bulk of the growth but spend is forecasted to be at its highest since 2010 across the five markets.
The report, issued by the Global Business Travel Association (GBTA) predicts the total business spend will near US$43 billion this year, up 4.4% compared to 2013.
Domestic trips will increase at a higher rate than international visits, by 5% and 3.2% respectively.
In comparison, the more economically-stable Germany will see spend grow 7% with domestic and international traffic up 7.2% and 5.3% respectively.
The trends are also expected to continue next year, suggesting the worst of the economic situation is now behind businesses.
“Continued signs of strength and progress in the European economy and gathering momentum suggest that 2014 will be a transition year, said Catherine McGavock, regional director for Europe for GBTA. “At long last the 2012-2013 recession appears to be over and the European economy on a more solid footing. While challenges remain, this is very positive news and bodes well for business travel growth as business confidence rises across the region.”
Growth rests on a fragile environment though with high oil prices impacting costs and a potential for shocks in currency particularly in emerging markets.
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