Germany leading the way with 10 per cent business travel growth in 2015
Business travel spending in Germany, the UK, France, Spain and Italy combined will grow at over six per cent in 2015 and 2016, a leading indicator that the European economy is ‘gathering steam’ and is poised for a moderate economic breakthrough. These findings are part of the semi-annual GBTA BTI Outlook – Western Europe report, conducted by the Global Business Travel Association (GBTA) Foundation, the education and research arm of GBTA and sponsored by Visa, Inc.
These five markets comprise nearly 70 per cent of Western Europe’s business travel market. Business travel spending in the countries will grow 6.4 per cent in 2015 and another 6.3 per cent in 2016. In total, this segment of the Western European business travel market will grow from US$ 186.3 billion (€140.2 billion) in 2014 to US$ 210.6 billion (€220.3 billion) in 2016.
“The study shows that the European economy is gathering steam and beginning to put its economic woes in the rear-view mirror,” says Catherine McGavock, GBTA’s regional vice president – EMEA. “Business travel is faring even stronger than the moderate economic breakthrough, with double digit spending growth in Germany as well as over seven per cent growth in both the UK and Spain this year. Still uncertainties in the global economy present risks to this business travel breakout, leading to a cautiously optimistic outlook for many companies.”
After 2014 proved to be a bounce-back year for Western European business travel, the recovery continues to pick up the pace in 2015 with Germany, the UK and Spain leading the way, according to the report.
Germany represents over 20 per cent of Western Europe’s business travel activity and continues to be the strongest market on the continent. The UK has exhibited some of the strongest performance in the region as improving employment and low energy prices have spurred consumption. Spain continues its impressive economic turnaround and is expecting robust business travel growth this year. France and Italy, on the other hand, are the two most challenged markets with weaker economic growth leading to much lower business travel growth rates. “With this continued growth forecast in Europe, companies will want to retain control of their costs as travel activity increases. Visa’s best-in-class payment solutions play a key role in providing buyers and suppliers with the visibility and automation needed to drive efficiencies to the bottom line,” says Tristan Kirchner, executive director, sales and marketing, Visa Europe.
Country-level business travel outlooks
Germany
A US$ 57.9 billion market (€43.6 billion), Germany is leading the way, with 10 per cent business travel growth projected in 2015 and 9.5 per cent in 2016. Spending on domestic business travel is surging at 11.4 per cent this year and 10.4 per cent next year, while international outbound business travel will grow 4.2 per cent in 2015 and 5.5 per cent in 2016
The United Kingdom
The UK is a US$ 43.5 billion market (£26.4 billion) and is expected to grow at 7.4 per cent in 2015 and 6.2 per cent in 2016. Spending on domestic business travel will grow at 8.3 per cent in 2015 and 7.8 per cent in 2016, while international outbound travel will grow at 5.5 per cent in 2015 and 3.1 per cent in 2016.
Spain
Spain is a US$ 18 billion market (€13.5 billion) – is expected to grow at 7.7 per cent in 2015 and 7.1 per cent in 2016. Spending on domestic business travel will grow at 8.6 per cent in 2015 and 7.8 per cent in 2016, while international outbound travel will grow at 4.6 per cent in 2015 and 4.8 per cent in 2016.
France
This is a US$ 36 billion market (€27.1 billion) which is expected grow at 3.1 per cent in 2015 and 3.4 per cent in 2016. Spending on domestic business travel will grow at 4.1 per cent this year and 4.5 per cent next year, while international outbound travel will grow at 2.5 per cent in 2015 and 3.4 per cent in 2016.
Italy
Italy is a US$ 31 billion market (€23.3 billion) and is expected to grow at 1.1 per cent in 2015 and 1.9 per cent in 2016. Spending on domestic business travel will grow at 0.8 per cent this year and 1.4 per cent next year. International outbound travel will grow at 4.1 per cent in 2015 and 5.0 per cent in 2016.