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f is for factoid, and you'll find plenty of them in the 2014-2015 LCT Fact Book and Industry Guide available starting today.
In the May 2014 issue, which is your bible for business planning, we publish a comprehensive panorama of facts and figures to help you see the landscape ahead more clearly. Success is no accident! It takes planning and strategy, so please review this material carefully and email us (lctmag.com) if you’d like to discuss any information we’ve presented here.
Business Travel Landscape
In the past year, the fastest-growing premium travel markets were within and connected to Africa, South America, the Middle East and Asia, according to the International Air Transport Association. The organization says this reflects the strength of the economic expansion in these regions and the structural development of new South-South trade lanes, as business travel follows the direct investment flows that have happened in recent years.
The Global Business Travel Association expects business travel spend to increase this year by 6.6%, compared to 2013. To put this in perspective, from 2011-2012 spend increased by 1.6%. Then, in 2012-2013, spend went up by 4.6%. So another sizable increase is something to welcome with open arms!
Group Travel Accelerates in 2014
The meetings business has been on an upward swing for the past two years and this trend should continue in 2014. GBTA expects group travel spending to rise by 6.5% to $124.5 billion based on a volume increase of 1.7%.
“This is the healthiest growth outlook for meetings activity since 2011,” said Michael McCormick, GBTA executive director and COO. “Meetings are typically larger investments that require advance planning, and companies only make these decisions when they have confidence in the longer-term outlook for the economy.”
The corporate travel market is bracing for consolidation in ground transportation companies which they believe will drive chauffeured car service up. With the merger of BostonCoach and Dav El Chauffeured Transportation Network in March, it’s not a matter of if, but when. They are publicly announcing an aggressive acquisition plan forthcoming.
Service reviews will play a key role in travel negotiations. One in two business travelers already post reviews online. These reviews will hold more sway in the business travel program with the adoption of new corporate review sites.