Business travel spending in Germany, the U.K., France, Spain and Italy combined will grow at over 6 percent in 2015 and 2016, according to the semi-annual “GBTA BTI Outlook — Western Europe” report by the Global Business Travel Association (GBTA) Foundation and sponsored by Visa Inc.
These five markets make up nearly 70% of Western Europe’s business travel market. Business travel spending in the countries will grow 6.4% in 2015 and another 6.3% in 2016. In total, this segment of the Western European business travel market will grow from $186.3 billion USD (140 billion euros) in 2014 to $210.6 billion USD (220.3 billion euros) in 2016, according to the report.
“The study shows that the European economy is gathering steam and beginning to put its economic woes in the rear-view mirror,” said 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 7% growth in both the U.K. 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.”
Germany represents over 20% of Western Europe’s business travel activity and continues to be the strongest market on the continent, according to the report. The U.K. has exhibited some of the strongest performance in the region as improving employment and low energy prices have spurred consumption. Spain continues its economic turnaround and is expecting business travel growth this year. On the other hand, France and Italy are the two most challenged markets with weaker economic growth.
Here are some highlights from the GTBA report by country:
Germany: a $57.9 billion USD market (43.6 billion euros) is leading the way with 10% percent business travel growth projected in 2015 and 9.5% in 2016. Spending on domestic business travel is surging at 11.4% this year and 10.4% next year — while international outbound business travel will grow 4.2% in 2015 and 5.5% in 2016.
The United Kingdom: a $43.5 billion USD market (26.4 billion euros) is expected to grow at 7.4% in 2015 and 6.2% in 2016. Spending on domestic business travel will grow at 8.3% in 2015 and 7.8% in 2016, while international outbound travel will grow at 5.5% in 2015 and 3.1% in 2016.
Spain: a $18 billion USD market (13.5 billion euros) is expected to grow at 7.7% in 2015 and 7.1% in 2016. Spending on domestic business travel will grow at 8.6% in 2015 and 7.8% in 2016, while international outbound travel will grow at 4.6% in 2015 and 4.8% in 2016.
France: a $36 billion USD market (27.1 billion euros) is expected grow at 3.1% in 2015 and 3.4% in 2016. Spending on domestic business travel will grow at 4.1% this year and 4.5% next year, while international outbound travel will grow at 2.5% in 2015 and 3.4% in 2016.
Italy: a $31 billion USD market (23.3 billion euros) is expected to grow at 1.1% in 2015 and 1.9% in 2016. Spending on domestic business travel will grow at 0.8% this year and 1.4% next year. International outbound travel will grow at 4.1% in 2015 and 5% in 2016.
For more information, visit www.gbta.org.