The volume of business travel across Europe will decline in 2011, according to a new survey.
Finance consultants Deloitte polled 4,000 people in the UK, Germany, Italy and Spain about their travel expectations for the coming year.
The company said the still-to-be-felt impact of public spending cuts and the rise of VAT from 17.5% to 20% were the primary reasons for uncertainty in the UK, and that corporate travel budgets were likely to be squeezed further.
In Germany, Spain and the UK more than half of respondents said they would do less business travel next year, while in Italy it was 47%.
The findings contradict recent statements by a number of leading business travel industry figures, including Amadeus' vice president of marketing and distribution, Ian Wheeler.
However, Paul Tilstone, chief executive of the Institute of Travel and Meetings, told ABTN that research carried out by his organisation last year also found that the long-term outlook for business travel growth would slow.
“We may see a long-term reduction or the flattening of demand,” he said.
“Our buyers estimated that the combination of environment, cost reduction and travel-alternatives could account for a combined reduction of up to 30% over 10 years.
“When you combine the speed of travel-alternative technology development, the increased risk to global travellers (perceived or real), the environment, a greater focus on work/life balance, alternative working practices (home-working), greater connectivity, a focus on ROI of travel, changed business behaviour in the way it interacts with consumers/stakeholders, business travel content fragmentation it does suggest that we could see some challenge to demand long-term.”
The Deloitte survey was conducted in conjunction with TNS Research International ahead of its 22nd European Hotel Investment Conference in London today.
In Italy, Spain and the UK, the number of respondents who stayed in a hotel during the last 12 months has remained very flat year-on-year, rising slightly from 60% to 63% in the UK and Spain and from 64% to 65% in Italy.
In contrast, the number of German respondents to have stayed in a hotel in the last year rose strongly from 45% to 55%.
Deloitte said the majority of hotel operators were expecting a slow recovery from the global recession.
69% of respondents to the pre-Conference survey said they were cautious in the face of fragile consumer and business confidence.
Just 7% expected a strong economic recovery, but only 9% predicted a double-dip recession in their home country.
86% believed growth across Europe would remain stable or increase by between 1% and 5% in 2011.