Global business travel market spends $1.2 trillion in 2015, an increase of 5% from 2014, and is forecast to reach 1.3 trillion in 2016. The report is published by the Global Business Travel Association (GBTA) foundation in association with Visa. The BTI Outlook is Annual Global Report & Forecast that predicts and forecast business travel market globally.
Global business travel market, according to GBTA report, is forecasted to grow 5.8% on average over the next five years reaching $1.6 trillion by 2020. Amidst the global catastrophes including weakened global economy, terrorist attacks, world health issues, and other obstacles, the business travel market poised to demonstrated resiliency. Additionally, McKinsey reported that Asia accounts for more than a third of the world’s $1 trillion business-travel sector, and the region’s growth is accelerating.
Indian travel market has demonstrated dominance in global travel while its business travel segment also portrayed robust growth. The GBTA Foundation report forecasted 10.7% growth in business travel spending in 2016, followed by another 10.2% in 2017 reaching $36.1 billion. Indian business market bunny-hopped 5 positions since 2000 making it the 10th largest business travel market in the world behind Brazil, and further expected to ascend another 4 spots over the next five years to reach 6th position by 2019 surpassing Italy and South Korea.
Additional highlights from GBTA report:
- India’s economic boost in 2015 recording an average of 7.3% for the fiscal year (7th largest economy registered the fastest GDP growth rate in the world).
- Private consumption and public infrastructure contributed to growth in 2015.
- Prime Minister Modi has declared the development of the country’s infrastructure a cornerstone of public policy, taking India’s Competitive Report ranks from 74 out of 140 to high levels.
- Domestic business travel growth in 2016 and 2017 to reach 11.5% and 10.3% respectively contributing significant attention to domestic spending.
- Volatility presumed in International Outbound travel from India recording just 3.1% in 2016, unless improvement from global economy and trade takes place to reach 9% in 2017.
Significant chunk of business travel market for opportunity-seeking suppliers and marketers would be China business travel market, despite declines in growth. China’s $291 billion market with 8.4% growth bypasses all others markets. However, pundits predict China market to shrink to 5th position over the next five years. This is, in fact, a significant descend from their number 1 average ranking over the last 15 years.