18. Business Travel Spending (BTS) Growth
Still Moving at Two Different Speeds
0.4%
3.1% 3.4%
5.1% 5.2%
8.6%
14.1%
11.1%
9.8%
9.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2012 2013 2014 2015 2016
Average BTS Growth Rates: Developed vs.
Emerging Markets*
Developed Market BTS Emerging Market BTS
*Developed: W. Europe, US, Canada, Australia;
Emerging: China, India, Brazil, Indonesia
• BTS growth in emerging
markets continues to
dwarf growth in the
developed world
• Growth gap closes
towards the end of the
outlook’s horizon – growth
multiple of < 2x by 2015
GBTA BTI™ 2007 2011 2016
US 117 115 135
China 167 312 660
Germany 125 127 158
Brazil 153 228 372
India 148 228 482
Australia 129 158 190
23. Business Travel Challenges
• Short Term –Taking Off or Grounded for Low Visibility?
– European Crisis is the largest downside risk to global business travel
– The European mess is compounded by a slowdown in China & anemic growth in
the US
– Volatile and uncertain global economy have shaken business confidence delaying
purchases and putting pressure on travel budgets
– With stable oil and slower demand, travel prices should moderate over the next
year. Some price uncertainty remains, however.
• Medium Term –Continued Two-Speed Growth World
– Slower recovery, particularly in developed markets, suggest some resource
reallocation
– Travel suppliers must continue to entice travelers to front of cabin and add hotel
stars
– Advanced economies: Europe’s challenges continue; US needs to make progress
on unemployment and deficits; Japan struggles with debt and demographics
– Emerging economies: Political stability, infrastructure improvements, growing
domestic consumer base, competitiveness diminishes as incomes rise
• Long Term –Travel Remains a Critical Business Input
– Elephants and Gazelles continue to alter global market mix.
– Infrastructure challenges, air traffic control, fleet management, hotel supply,
meetings technology… –drive for greater efficiency
– Regulation, security, energy, climate change,…
25. •80 percent believe there will be more virtual meetings
irrespective of whether travels costs increase or decrease.
• 78 percent think technology will become easier to use.
• 72 percent see a future of increasing political instability
and insecurity.
• 67 percent think the future will mean scarce food, fuel
and water.
• 66 percent expect more specialized social networks.
• 63 percent believe that the workforce will be more mobile.
• 59 percent say there will be more limitations placed on
sharing and privacy from government and individuals.
• 54 percent believe there would be more strategic profit
centers in the world.
Food for Thoughts : The Findings
26. Implications :
•Meeting professionals must simplify. Technology is making
things easier; so, review your own processes—are they
simple enough. How many pages must someone refer to, in
order to get the information they need?
• They need to develop strategic alliances with suppliers and
partners, so that participation is as seamless as possible.
Think of Amazon as a model.
• Meeting professionals need to speed up. Efficiency is
critical and a growing trend. This may mean shorter
meetings, but will also mean faster follow-up and
development.
• Integration of technology and converging data are
priorities.
27. 1. Invest in virtual competencies/products to enhance your
services.
2. Simplify your products and processes for your clients,
suppliers and attendees.
3. Make safety and security priority.
4. Be responsible.
5. Think quality not quantity and close knit and niche.
6. Consider career development as opportunity.
7. Give benefits for sharing online.
8. Think beyond borders and beyond traditional economic
centers.
Recommendations :
