Business travel spending in five of the most critical markets in Europe is expected to hit $186.5 billion in 2014, according to a report published today from the Global Business Travel Association (GBTA).
In France, Germany, Italy, Spain and the UK travel spend is expected to grow by 5.1 per cent this year compared to 2013.
The GBTA BTI Outlook – Western Europe report sponsored by card provider Visa analysed these five markets as they form the lion’s share of business travel in the region, acting as a good barometer of the health of the entire European business travel market.
The study found improved business confidence and expectations for stronger economic growth and employment growth contributed to positive expectations for domestic and international outbound business travel in Western Europe.
The GBTA expects 2014 to be the first time in four years that sees all five markets show increases in business travel spending.
“Continued signs of strength and progress in the European economy and gathering momentum suggest that 2014 will be a transition year,” said GBTA regional director for Europe, Catherine McGavock.
“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.”
There is also positive outlooks on business travel spend for 2015 as GBTA estimates spending to pick up another 6.5 per cent growing to $198.6 billion across Europe.
Visa’s global commercial solutions SVP Tad Fordyce believes there will be an across-the-board increase in business travel throughout Western Europe.
“As 2014 progresses there are still economic hurdles to clear, but the overall forecast is trending in a positive direction.”
Challenges remain
The GBTA said despite the positive economic outlook there are still risks to the “fragile” economic recovery.
“The sovereign debt crisis is far from over, oil process are always a danger given the potential for Middle Easy supply interruptions and emerging markets currency risk has also recently shown the potential for financial shocks,” said GBTA.
“A new worry is the concern over current rates of disinflation giving way to deflation which can lead households and businesses to delay purchases in anticipation of lower future prices causing aggregate spending to drop.”
Click here to read the individual breakdown for each of the five European markets.