Global Business Travel to reach $1.6 trillion by 2020 - Sharing Economy up by 56%

Α Decrease font Enlarge font
Global Business Travel to reach $1.6 trillion by 2020 - Sharing Economy up by 56%Global business travel spend topped $1.2 trillion USD in 2015, growing 5 percent over 2014, and is forecast to reach 1.3 trillion in 2016

Global business travel spend topped $1.2 trillion USD in 2015, growing 5 percent over 2014, and is forecast to reach 1.3 trillion in 2016 according to the GBTA BTI™ Outlook – Annual Global Report & Forecast, a new report released today by the GBTA Foundation, the education and research arm of GBTA, and sponsored by Visa, Inc. Despite continued global uncertainty, cautious optimism rules the forecast, which predicts global business travel spend to advance 5.8 percent on average over the next five years reaching $1.6 trillion in 2020. 

Global business travel remains a critical driver of the success of organizations around the globe,” said Michael W. McCormick, GBTA executive director and COO. “Business travel has demonstrated a tremendous resiliency as it continues slow and steady progress even in the face of global uncertainty, a weakened global economy, terrorist attacks, world health issues and other obstacles. Companies across the globe clearly understand the return on investment business travel delivers for their bottom line.” 

While overall growth has remained steady despite global uncertainties, signs are good for a solid end to the decade as we approach 2020,” said David Henstock, VP, Global Business Solutions at Visa, Inc. “Business travel has continued to evolve as the world is becoming more connected, and the transition to electronic payments will help businesses reduce costs and pay for travel expenses more efficiently.” 

The Annual Rankings 

At $291 billion, China surpassed the United States as the largest business travel market in the world in 2015.

The Next Five Years: The Quest for Growth in an Era of Uncertainty 

Sustained economic uncertainty and mixed results among the major business travel markets will drive continued moderate growth, but as GBTA looks ahead towards 2020, we expect that there will be a drastic difference in the relative performance of business travel markets around the globe. 

Both India and Indonesia will average double-digit growth in business travel spending over the next five years. China’s economic growth continues to moderate and GBTA forecasts their business travel market will be the fifth fastest growing major market in the world over the next five years – a vast departure from their #1 average ranking over the last 15 years. Despite declines in growth, China remains the largest single market opportunity for travel suppliers and marketers as their $291 billion market size coupled with 8.4 percent average growth will lead to the largest gains in spending of any major market by far. 

The Impact of Brexit 

The annual forecast was compiled before the U.K. voted for Brexit on June 23, but the added uncertainty the vote brings will likely make its mark felt on business travel. The financial upheaval and pending changes to trade and immigration rules will raise management heartburn causing some postponement, and even outright cancellation of business trips. It may also trigger travel budget constriction as management seeks to hedge the uncertainty. If the U.K. does enter a mild recession, domestic and outbound business travel will suffer. On the other hand, a much weaker pound will make leisure and business travel to the U.K. a real bargain. 

Business Travel Evolution: 15 Years of Volatility 

With 15 years of business travel spend now tracked by the GBTA Foundation, it is clear that business travel has evolved rapidly in this time. In 2000, $634 billion was spent on global business travel, half of the $1.2 Trillion spent in 2015. Growth has been driven by an increasingly connected world and the rapid maturation of a number of key business travel markets. 

External forces have also had a dramatic impact as early in the millennium business travel volumes were held back as many developed economies battled recession. By 2004, however, the global economy was back in full swing and business travel prospered between 2003 and 2008. Beginning in late 2008, the Great Recession and Financial Crisis began and global business travel plummeted over the following 18 months. Business travel clawed its way back over the next few years, outpacing the recovery in the overall global economy. Following the robust recovery period for business travel in 2010 and 2011, global business travel spending growth entered the doldrums only growing in the 3 percent range. Now we have entered an era of uncertainty marked by moderate growth for the foreseeable future. 

United States 2016 Q2 Outlook Highlights The GBTA Foundation also released its GBTA BTI™ Outlook – United States 2016 Q2 report today with slightly downgraded expectations from the previous quarter. GBTA forecasts U.S. business travel spending to grow only 0.9 percent this year ($292.5 billion) before advancing 4.2 percent in 2017 ($304.9 billion). 

Increasing risks in the domestic and global economies, uncertainty leading up to the U.S. presidential election, the surprising vote from the U.K. to leave the EU and continued signs of a weakening global economy have combined to influence the slightly more pessimistic outlook for U.S. business travel over the next six months. 

The slow growth environment of the U.S. and global economies has taken a toll on many fronts leading to this ‘new normal’ of slow, but steady one to two percent progress,” said McCormick. “Favoring dividends, M&A and stock repurchases over investing in capital, people and business travel in this environment could come back to haunt U.S. businesses. When growth does re-accelerate, companies must be ready with the newest technologies, the most productive workforce and the critical customer relationships necessary to take full advantage.” 

More Information

The GBTA BTI™ Outlook – Annual Global Report & Forecast and the GBTA BTI™ Outlook – United States 2016 Q2 are free of charge to all GBTA Members by clicking here. Non-members may purchase the report through the GBTA Foundation by emailing pyachnes@gbtafoundation.org. Click here to view a preview of the research.

About the GBTA Foundation

The GBTA Foundation is the education and research foundation of the Global Business Travel Association (GBTA), the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. Collectively, GBTA’s 7,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA provides its growing network of more than 28,000 travel professionals and 125,000 active contacts with world-class education, events, research, advocacy and media. The Foundation was established in 1997 to support GBTA’s members and the industry as a whole. As the leading education and research foundation in the business travel industry, the GBTA Foundation seeks to fund initiatives to advance the business travel profession. The GBTA Foundation is a 501(c)(3) nonprofit organization. For more information, see gbta.org and gbta.org/foundation.

Concur study highlights business travel, spending

At the same time, Concur, the world's leading provider of integrated travel and expense management solutions, released its innovative State of Business Travel 2016 report at the Global Business Travel Association (GBTA) convention. In the report, Concur delivers a comprehensive look at where and how business travelers are spending. With business travel rapidly changing, and travel and expense representing the second-largest area of controllable business spend, the insights in this report will allow companies to better design their travel and spend policies, which in turn influences their bottom line.

Concur analyzed business travel booking and expense reporting data from its database of more than 40 million users, representing more than $76 billion in annual spend. By presenting this mass of data in the context of six business traveler personas – a first in the industry – Concur makes this information more relevant and actionable for companies.

Business Traveler Behaviors

The State of Business Travel report confirms that not all business travelers are created equal. In some cases, a company may want to tailor its travel policy to account for the unique needs of its travelers, from frequent flyers and road warriors to once-a-year travelers.

More than half of all business travelers are "Cautious Carls," but Carls account for only 14 percent of total business travel spend.

"High-tech Hannahs" and "Cautious Carls" care more about price than other types of travelers, while "Savvy Sams" and "Jet Setter Jeremys" (who contribute to 46 percent of total business travel spend) are more concerned with comfort and convenience.

When it comes to air travel, "Jet Setter Jeremys" consistently spend the most because they are more likely to book at the last minute and opt for premium seats.

"Managing travel and expense is becoming increasingly complex, between integration with mobile technology, nuances in traveler preferences, and new travel supplier strategies," said Robb Nielsen, vice president of global product experience at Concur. "This demands a fully connected travel and expense ecosystem paired with actionable insights, giving travel managers the visibility and control they need to drive cost savings."

Sharing Economy on the Rise

While it's no surprise home-sharing services like Airbnb, VRBO, and HomeAway are increasing in popularity among business travelers, Concur data indicates a dramatic 56-percent growth in usage from Q1 2015 to Q1 2016. On average, business travelers stay five nights when home sharing, compared to three nights when staying at a traditional hotel.

Meanwhile, Atmosphere Research Group data from 2015 shows that 8 percent of U.S. business travelers used home-sharing accommodations at least once on a business trip. According to Harteveldt, this number is expected to approach 10 percent in 2016 as more companies approve the use of home-sharing services, and home-sharing hosts improve property amenities – such as higher-quality bedding and faster, more reliable Wi-Fi connectivity.

Existing and Emerging Business Travel Markets: U.S. vs. China

From conferences, to leadership meetings, to sales trips – business travels take employees to locations far and wide. But different cities come at different costs. In 2015, Concur business travelers spent the most in New York, Chicago, and San Francisco among U.S. cities, while the U.K., Canada, and China took top rankings for spend outside the U.S.

"China's growth as a business travel market is increasingly driven by Chinese travelers, rather than international visitors to the country," added Harteveldt. "In fact, Boeing's Long Term Market Outlook for 2015 to 2034 estimates Chinese airlines will order 6,130 new aircraft (from all manufacturers), or 17 percent of all new aircraft. The 146,590 hotel rooms under construction in China in May 2016 account for more than 56 percent of the total hotel rooms being built across Asia, according to Smith Travel Research."

They Spent What, Where?

Last year, Concur processed 86 million expense reports, while Concur users booked 46 million flights and expensed 74 million hotel nights, nearly $10 billion in ground transportation, and $12 billion in dining and entertainment. The data led to some surprising facts from 2015:

  • Several Concur log-ins have originated from the International Space Station
  • The single highest line item submitted on an expense report was for $2.2 million
  • Monday, November 30 was the busiest day for expense reports, with 534,669 reports submitted
  • 60 percent of Concur expense reports are simple, with an average of five line items, and are completed in an average of eight minutes or less
  • 84 people expensed between 360 and 365 hotel days
  • Concur's busiest 1 percent of travelers boarded an average of 146 flights
  • The most expensive car rental expensed was for $31,082 in Tulsa, Oklahoma
  • The most expensive ride sharing transaction was for $27,244 in New York, New York

Click here to learn more and read the full State of Business Travel report.

Read more here.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

 

Tornos
  1. 27/07 23:35

    Greece records 3,593 new Covid-19 infections and eight fatalities on Tuesday

  2. 27/07 21:48

    Greek state budget shows primary deficit of 9.1 billion euros between January-June

  3. 27/07 21:19

    Diplomats: Israel shows strong will to enhnace cooperation with Cyprus

  4. 27/07 21:08

    AHEPA’s 99th Anniversary Supreme Convention is in full swing in the Greek capital

  5. 27/07 20:15

    Greek Civil Aviation Authority adds self-test to domestic flight requirements for minors 12–17

  6. 27/07 17:38

    Greek Cultural Center hosts Music Production Class between August 24-September 21

  7. 27/07 13:51

    COVID-19's grip on Greece set to loosen in August

  8. 27/07 10:57

    Greek government announces minimum wage raise by 2%

  9. 26/07 21:52

    Vaccination appointments for children aged 12-15 to become available in Greece on Friday

  10. 26/07 21:40

    Greece-Cyprus-Jordan summit at Zappeion Megaron of Athens on Wednesday

  11. 26/07 21:01

    Management consulting firms more optimistic over economic developments in Greece

  12. 26/07 20:57

    AHEPA’s 99th Anniversary Convention commences with thanks and welcomes in Athens

  13. 26/07 19:53

    Covid-19 restrictions imposed on Greek island of Mykonos lifted

  14. 26/07 19:49

    Greece records 2,070 new Covid-19 infections and five fatalities on Monday

  15. 26/07 19:06

    IATA adds Environmental Sustainability program to its training curriculum

  16. 26/07 15:02

    Doors open for Greece's Covid-19 vaccinated but close for the unvaccinated

  17. 26/07 00:46

    Greece records 1,533 new Covid-19 cases and eight 8 fatalities on Sunday

  18. 25/07 21:51

    AP: Europe's summer tourism outlook dimmed by variants and rules

  19. 25/07 18:42

    Greece's COVID-19 unvaccinated people won't be barred from retail stores

  20. 25/07 15:55

    Study: Pfizer and Astra Zeneca vaccines' effectiveness against the Delta variant

  21. 25/07 12:36

    Incentives to doctors and pharmacists to persuade Greek citizens to get vaccines

  22. 24/07 23:45

    IATA slams European Commission slots decision out of touch with reality

  23. 24/07 00:08

    No vaccinations needed but tests for Greece's tourism workers required

  24. 23/07 20:49

    The 5th Annual World Council of Epirotans Abroad on July 24 through Zoom

  25. 23/07 18:52

    Cyprus hοteliers say Israel's decision for travel ''a negative development''

  26. 23/07 18:43

    Greek government will pay doctors and pharmacists to give COVID-19 vaccines

  27. 23/07 16:38

    Greek Shipping MInister urges travelers to observe safety measures

  28. 23/07 14:46

    European Union greenlights €100 million to support health system in Greece

  29. 22/07 21:07

    Greek authorities will require COVID-19 vaccinations for health care workers

  30. 22/07 20:55

    Greek Prime Minister: Mental health is of vital importance (video)

  31. 22/07 19:45

    Old Acropolis Museum in Athens being refurbished as exhibition space

  32. 22/07 19:34

    Greece records 2,604 new Covid-19 infections and five fatalities on Thursday

  33. 22/07 16:29

    Global travel largely on hold despite rise in May

  34. 22/07 16:02

    Greek FinMin launches e-platform for debt settlement for vulnerable households

  35. 22/07 15:40

    IATA: Aviation passengers confident in onboard safety

  36. 22/07 15:23

    Greek government: Vaccinations expected to exceed 10 million on Thursday

  37. 22/07 14:51

    IATA, IATAN and ARC to jointly offer tourism diploma courses for US travel agents

  38. 22/07 12:58

    International Air Transport Association warns governments on high cost of testing

  39. 21/07 22:48

    Russian Airlines to resume regular flights to Greece as of July 24

  40. 21/07 22:43

    Mandatory vaccination amendment submitted in Greek Parliament imposes large fines

  41. 21/07 22:32

    Greek Tourism Ministry clarifies indoor venue requirements for non-EU citizens

  42. 21/07 20:37

    Zagori Mountain Running 2021 schedule announced with top athletes visiting Epirus

  43. 21/07 18:54

    Greece records 2,972 new Covid-19 infections and three fatalities on Wednesday

  44. 21/07 18:54

    Greece records 2,972 new Covid-19 infections and three fatalities on Wednesday

  45. 21/07 16:52

    Greek island of Skiathos world’s third most beautiful film location

  46. 21/07 16:06

    Greek fans fly to watch Giannis Antetokounmpo soar to the top

  47. 21/07 15:17

    Greek PM: 120,000 young people between 18-25 have applied for the Freedom Pass

  48. 21/07 10:17

    Greece plans vaccinating 12-15 year-olds in campaign against COVID-19

  49. 21/07 00:13

    Foreign tourist arrivals in Greece reached 2.3 million already

  50. 21/07 00:00

    Sting to appear in Athens for two concerts marking his 70th birthday

  51. 20/07 22:52

    Greek PM announces plan to overhaul 'abandoned' Olympic Games complex

  52. 20/07 21:49

    The Greek Online School unveils results of its Greek language survey

  53. 20/07 19:44

    Greece records 3,565 new Covid-19 infections and nine fatalities on Tuesday

  54. 20/07 19:33

    3rd Balkan Forum at Thessaloniki to be organized on September 24-25

  55. 20/07 18:46

    WTTC responds to the relaxing of restrictions across the United Kingdom

  56. 20/07 18:40

    Greek Tourism Minister: Arrivals in June 50% up compared to July 2020 reopening

  57. 20/07 18:09

    Conde Nast Traveller presents 13 restaurants in Santorini

  58. 20/07 15:36

    IATA welcomes further easing of border restrictions by Canadian authorities

  59. 20/07 13:25

    Jet2 Group: Britons start holidays in 40 destinations without quarantine

  60. 19/07 22:41

    Greece records 1,834 new Covid-19 infections and eight fatalities on Monday

  61. 19/07 20:13

    Appointments platform opens on Tuesday for people being vaccinated at home in Greece

  62. 19/07 17:21

    Greek PM on Messinia tour: Vaccination of children will not be obligatory

  63. 19/07 15:24

    Cyprus residents travelling abroad record sharp annual spike in June 2021

  64. 19/07 14:17

    Tourist arrivals record rise in Cyprus during June 2021

  65. 17/07 21:58

    Germany declares Greece and Netherlands 'risk areas' for Covid-19 infections

  66. 17/07 17:59

    AHEPA’s Supreme Convention returns to Hellenic homeland in 2021

  67. 17/07 15:39

    Greek island of Mykonos under curfew to Monday over rise in Covid-19 cases

  68. 17/07 15:02

    Boat travel requirements recapped by Shipping Ministry in Greece

  69. 16/07 14:45

    WTTC: Approved vaccine inconsistency could delay the restart of international travel

  70. 15/07 20:33

    4th Investors Forum 2021 in Athens: Four ministers outline government's work and outlook

  71. 15/07 19:35

    Greece in USA’s The Right to Breathe exhibition to last from July 14 to October 8

  72. 15/07 18:22

    Greece records 2,794 new Covid-19 infections and six fatalities on Thursday

  73. 15/07 18:01

    Greece forbids entry to more foreign nationals in updated health notam

  74. 15/07 17:31

    Greek Finance Minister reveals plan to increase number of tranches of pandemic debts

  75. 15/07 17:06

    First International standard on accessible tourism for all announced

  76. 15/07 16:10

    15 Italian youngsters self-isolating on Ios island after five test positive for Covid-19

  77. 15/07 15:27

    Celestyal Cruises cooperates with AtmosAir Solutions for most advanced air purification

  78. 15/07 13:22

    Greek Diaspora mobilizing Hellenism: 'Node: Global Hellenic Networks'

  79. 15/07 10:15

    Cyprus remains on United Kingdom "amber list"

  80. 14/07 22:37

    Heatwave forecast in Greece on Thursday

  81. 14/07 21:41

    International Air Transport Association: Tax is not the answer to aviation sustainability

  82. 14/07 21:24

    Celestyal Cruises' Idyllic Aegean vessel sailing in the Greek islands

  83. 14/07 19:45

    Greek Coast Guard to check passengers boarding ships from Thursday

  84. 14/07 18:36

    Development Minister: Trade fairs to reopen in Greece as of September 1

  85. 14/07 18:19

    Minister: 3 in 4 educators already vaccinated or planning to in Greece

  86. 14/07 17:59

    IATA calls on States to adopt WHO guidance on cross-border travel

  87. 14/07 16:12

    UNWTO partners with Grupo Xcaret in Mexico for sustainable tourism development

  88. 14/07 11:05

    Aeschylia festival to be held in Elefsina of Attica between August 22 and September 26

  89. 13/07 18:50

    American Tourism: Multiple shorter trips the strongest trend for Summer 2021

  90. 13/07 18:24

    Extra virgin olive oil may safely help prevent Alzheimer’s

  91. 13/07 17:34

    Greek Prime Minister welcomes ECOFIN approval of Greece's recovery plan

  92. 13/07 16:42

    Greek islands records major fall in migrant flows and asylum seekers

  93. 13/07 16:17

    Flouting compulsory vaccination to carry strict penalties in Greece (video)

  94. 13/07 16:03

    Greece launches "COVID Free GR" app for checking vaccination certificates

  95. 13/07 13:07

    City of Athens opens cooling shelters for heatwave over the next few days

  96. 13/07 12:11

    Greek Health experts brief Holy Synod and ask Church to help effort against pandemic

  97. 13/07 11:31

    Aristophanes’ The Frogs streamed live from Ancient Theatre of Epidaurus in Greece

  98. 12/07 22:08

    Covid-19 appointments platform opens for ages 15-17 in Greece on Thursday

  99. 12/07 21:52

    Athens and EBRD sign MoU on management of EU Recovery Fund loans

  100. 12/07 20:42

    Greek PM announces obligatory vaccination of staff in health care sector