Industry Research

Good Economic News For One Industry Niche

Posted on August 23, 2011

ALEXANDRIA, Va., -- The GBTA Foundation, the research arm of the Global Business Travel Association released a comprehensive report Tuesday analyzing the state of global business travel spend and growth projections over the next five years.

The Global Business Travel Spending Outlook 2011-2015 study, sponsored by Visa, reveals that business travel spend around the world increased 8.4% in 2010, after falling 7.8% in 2009. Global spending on business travel is projected to grow another 9.2% in 2011 to just over $1 trillion.

According to the study the global economic recovery is occurring at two different speeds and that is reflected in the recovery of global business travel. Compound annual growth in business travel spending in Brazil, Russia, India and China is projected to grow two to three times faster than in developed economies like the U.S., France, Germany and the U.K.

"The recovery is happening, it's just not happening as quickly as most people would like," said Michael W. McCormick, GBTA executive director and COO. "Several countries are seeing the rebound happen at a much faster and more stable pace, and we're seeing that in the pace of business travel spending in the economies of China, India, Russia and Brazil. We're still bullish on business travel and all signs point towards continued growth."

Global business travel has advanced faster and farther than expected a year ago. The industry has benefited by the combination of a number of positive factors that have allowed it to spring out of the recovery gate.

  • First, corporate balance sheets and profits have been strong due, in part, to the stringent cost controls put in place during the "Great Recession." In fact, a 2010 GBTA Foundation study (ROI Refresh: Travel as a Competitive Advantage) actually found that travel budget cuts were more aggressive (relative to sales) during the recession than sales losses would routinely dictate. This contributed to a release of pent-up demand once the recovery got underway.
  • Second, the recovery in global trade growth dramatically boosted international business trips.
  • Finally, travel inflation, particularly in air fares, is contributing to the rebound in travel spend.

Source: GBTA Foundation via PRNewswire

View comments or post a comment on this story. (0 Comments)

More News

Traditional Car Services Won’t Disappear From Corporate Travel

What remains to be seen is whether they'll widely adopt more user-friendly interfaces for catching a ride on-demand.

TNCs Influence How, If Millennials Buy Cars

How should vehicle makers adjust their strategies as a new generation embraces on-demand rides?

Luxury Travelers Value Experiences Overall

They want to learn something new, but it's the affluent consumer that has the means to do this the most.

Travelers Booking With Agents Avoid Sharing Economy

New data shows more requests from clients for alternate accommodations and new ground transportation options.

Driverless Cars Could Kill More Than Four Million Jobs

Chauffeurs are among the many drivers who would no longer be needed.

See More News

Facebook Comments ()

Comments (0)

Post a Comment



See More

See More

See More

See More

LCT Store

LCT Magazine - October 2016 $12.95 COVER STORY: * Leverage Tech To Levitate Your Operations * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close