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September 2022, Virtual
September 29 2022, Virtual
Business travel is growing steadily on both sides of the Atlantic, according to the latest research in Europe and the US.
Managed corporate travel in Europe grew by 4.4 per cent to €38.9 billion in 2012, according to a report commissioned by Travelport and produced by research company Phocus Wright.
The research also predicts a 2.2 per cent rise in managed business travel in 2013 to €39.8 billion and a 3.7 per cent increase to €41.2 billion in 2014.
In a separate report, GBTA has upgraded its forecast for business travel spending in the US during 2013, which it now thinks will reach $273.3 billion compared to the previous estimate of $268.5 billion.
Travelport’s European report also estimates that online bookings will continue to grow strongly – with an estimated increase of 16 per cent this year and 13 per cent in 2014.
There is also expected to be “tighter use of corporate policy” with companies continuing to clamp down on costs by looking for “higher levels of compliance, enforcing a reduction in premium class travel and utilising preferred suppliers”.
The report also said that rail in Europe was capturing a bigger share of the overall travel market for journeys of three-and-a-half hours or less.
Simon Ferguson, Travelport’s UK and Ireland regional director, said: “These findings reinforce what we are seeing in the UK. Online booking trends are significantly evolved, as is the use of mobile to ‘consumerise’ the business traveller experience.”
GBTA said it was upgrading its forecasts for the US market mainly due to growth in domestic business travel spending as the economy started to improve.
However, international outbound corporate travel spending from the US is only expected to rise by 3 per cent in 2013 to $33.1 billion – down by $200 million on the previous estimate. GBTA said this was due to a “softening in the economies of key US export markets, including China and the eurozone”.
GBTA executive director Michael McCormick said: “With the US economy moving into a more stable growth mode, companies are seizing on opportunities closer to home.
“The rise in domestic business travel spending is a positive sign of increasing business confidence and bodes well for future employment growth.”