Global business travel spending will increase to $1.3 trillion in 2016 and should grow an average of 5.8 percent per year to $1.6 trillion by 2020, according to the Global Business Travel Association’s annual forecast.
The forecast, sponsored by Visa, projects the largest business travel growth rates over the next five years will occur in India and Indonesia. China surpassed the United States as the largest business travel market in 2015, but its business travel growth rate will slow to fifth-highest over that period, compared to its No. 1 ranking over the previous 15 years. Even so, it will be a $291 billion market with 8.4 percent average annual growth, giving it the largest overall gains of any market, according to GBTA.
In 2015, global business travel spending increased 5 percent to $1.2 trillion, rising in each of the top 15 markets except Brazil and Russia, the report indicated.
The effects of the United Kingdom’s vote to exit the European Union also remain to be seen. “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,” according to GBTA. “It may also trigger travel budget constriction as management seeks to hedge the uncertainty. On the other hand, a much weaker pound will make leisure and business travel to the U.K. a real bargain.”
Source: Business Travel News