MENU
SEARCHDespite the current slowdown in growth in China based on a low demand for Chinese exports, the government focus on infrastructure and domestic growth is expected to boost spending.
Graph courtesy of the GBTA.
The Global Business Travel Association (GBTA) released the results of its second GBTA Business Travel Index (BTI) Outlook — China on Oct. 17.
The GBTA BTI Outlook for China revealed a slowdown in growth due to a lower level of demand for Chinese exports in the U.S. and Europe. The GBTA predicts that total business travel spending in 2012 will grow by 12.5% to $195 billion, and in 2013 will see a growth of 14.7%.
Graph courtesy of the GBTA.
Additionally, international outbound travel (IOB) will grow 5.5% in 2012 as China’s main export partners recover, the GBTA report said, with growth increasing to by 17.5% to reach $10 billion in 2013. See the graph above to see how IOB has historically correlated with the country's exports.
Domestic travel spend will grow by 12.8% in 2012 and it is expected to jump another 14.6 % to reach $213 billion by 2013, according to the GBTA.
China has increased the size of the four largest airports and added more hotel rooms in order to boost business travel. The Chinese government has purposely rebalanced the economy toward domestic growth over the past few years through the introduction of fiscal stimulus with an increase in infrastructure spending.
China business travel will pass the U.S. by 2014, a year earlier than previously forecasted, based on the current growth rates and investment in infrastructure, the report said.
The GBTA BTI Outlook projects aggregate business travel trends over the next eight quarters. The report tracks business travel spending in total and by domestic and outbound segments.
The report uses a model that relates measures of business travel spending to key economic and market drivers of business travel including: Gross Domestic Product (GDP) and its components; employment and unemployment; measures of business and consumer confidence; international trade, foreign direct investment and exchange rates; commodity and oil prices; inflation measures; productivity rates for business travel; International Air Transport Association (IATA) Passenger and Revenue Performance and Smith Travel Research (STR) Global Hotel Performance.
The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.
Read More →
The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.
Read More →
The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.
Read More →
West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.
Read More →
Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.
Read More →
A Carwiz partner in Puerto Rico is taking on the Panama franchise with operations in the nation's largest airport.
Read More →
The integrated business model combines each operator’s local expertise with international standards to boost sales.
Read More →
The study looks at customer analytics to size up performance in car rentals, rideshare, airlines, lodging, and OTAs.
Read More →
Revcuity, an outgrowth of Frontline Performance Group, aims to help clients capture more revenue moments with face-to-face customers, including in the car rental space.
Read More →
Martin Romjue has been editing and reporting for ARN since 2023 and fully transitioned to the role of chairman of the International Car Rental Show in 2026.
Read More →
