AirPlus study leads to the first issue of Global TrendLetter explaining how managers of travel expect the global economic climate to affect business travel.
An AirPlus study has found that despite the global economy predicting an improved increase of GDP compared to 2013, most business don’t think that the economic climate will effect business travel. According to the IMF’s most recent World Economic Outlook, global GDP is expected to grow by 3.6 per cent in 2014 – ahead of 2013 projections (2.9%). Emerging and developing economies will see substantially higher growth than advanced economies in 2014 (5.1% compared to 2.0%).
Nevertheless, the global majority of companies interviewed, (58%) say that the current economic situation has no effect on business travel, with a third of travel managers expecting a negative effect, and only 12 per cent expecting to see positive effects. Those positive expectations come from the UK, Russia, Australia, Singapore, Austria, Turkey, Germany and the USA.
Those companies predicting a positive effect on business travel for 2014, see more trips, bigger budgets, longer trips and more relaxed travel guidelines.
Yael Klein, Managing Director of AirPlus UK, said “We are pleased to see that the expected global GDP is going up, and to a greater degree than in 2013. This points to good things for the global economy. Moreover, the UK seems to have optimisitic expectations compared to the rest of the world, which can only be a positive sign for things to come in this market, however I would urge UK businesses to act with caution and to continue using the best practices that have been put in place in harder times.”
How does the current economic situation around the world affect business travel
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
