Study: European Business Travel on the Rise

Business travel spend in Western Europe sees largest annual growth since global recession as it is set to grow 3.4% in 2014.

The Global Business Travel Association (GBTA), the voice of the global business travel industry, announced the results of its latest GBTA BTI™ Outlook – Western Europe report, a semi-annual analysis of the five most critical business travel markets in Europe: Germany, the UK, France, Italy and Spain. These five markets together form the lion’s share of business travel in the region, nearly 70%, and act as a good barometer of the health of the entire European business travel market.

Key highlights of the report:

  • Business travel spending among the five markets is expected to hit $183 billion USD, (€144.7 billion) 3.3% growth over 2013. This projected gain would be the largest in Western Europe since the Great Recession.
  • Germany remains the largest business travel market in Europe reaching $50.5 billion USD in 2012. This is expected to increase 5% in 2013 to $53 billion USD.
  • The UK has the second highest level of spending on business travel in Western Europe – $40.6 billion USD in 2012 – expected to advance 1.6% in 2013 to $41.3 billion USD.
  • Spain, Italy and France will all see their business travel markets contract in 2013 by -6.7%, -3.9% and -2.3% respectively.
  • In 2013, domestic business travel will fare better than international outbound in all five markets except for the UK.

“After six consecutive quarters of decline, Europe has finally turned the corner. Challenges remain but we cannot ignore the economic progress that has been made and the impact that this will have on both domestic and international travel across Western Europe. Next year we can expect to see the largest annual growth in business travel spending in more than 6 years”, Catherine McGavock, Regional Director for Europe for GBTA.

“The upsurge in business travel spending, as noted by the BTI™, reinforces the fact that the Western Europe economy is stabilizing,” said Tad Fordyce, head of global commercial solutions at Visa Inc. “Although the recession took a toll on these markets, we are very optimistic this upward movement will continue the momentum into 2014.”

North South Divide Still Very Evident

European economic growth remains a two-speed story with the Northern markets showing positive growth that has not yet been enough to compensate for the still-negative performance of the Southern tier.

Last year proved to be a challenging one for the Western European economy and for business travel. Business travel policies were tightened and budgets were reduced or frozen. Total travel spend across all five key country markets combined to register a decline of 2.2% in 2012, to $177.4 billion USD. However, while Germany and the UK eked out small positive growth rates for the year, negative performance in Italy, Spain and France overwhelmed the slight growth in the North. The Southern countries are expected to continue to decline for the remainder of the year and into early 2014, but with Germany and the UK gathering momentum, the region will see a return to growth in 2014. The GBTA Foundation expects travel spending to be essentially flat in 2013 then rise by 3.4% the following year.

Eurozone Corporate Profits

Business travel is very closely tied to corporate profit performance, another indicator that is beginning to turn around in Europe.Corporate profits in Northern tier countries are beginning to show positive growth over year-ago levels.Theexpectation for the rest of 2013 and 2014 is for operating surpluses to stabilize and begin to improve, driven finally by some top-line revenue growth to combine with cost-cutting programs that have been in force since 2011. All of this bodes well for both domestic and international overseas business travel.

Country-Level Business Travel Outlooks

Germany

  • GBTA forecasts growth in total business travel spending to hit 5% in 2013. 2014 will be another strong period for German business travel, which will grow 6.1% to $56.3 billion USD.
  • Spending on domestic business travel is expected to end the year up 5.7% over 2012. Even more growth is in store in 2014 as domestic business travel spending is projected to surge 7.7% to $46.4 billion USD.
  • GBTA expects international outbound travel to increase 2% in 2013, but fall again slightly in 2014.

United Kingdom

  • GBTA expects total business travel spending to hit $41.3 billion USD in 2013, up 1.6% from 2012. Spending will continue to pick up pace in 2014, advancing 2.9%.
  • Domestic spending is projected to grow 0.8% and 4.0% in 2013 and 2014, respectively.
  • International outbound business travel is likely to outperform domestic spending in 2013 but that trend will reverse in 2014, mostly due to exchange rate effects. Total international outbound business travel spend is projected to grow 3.0% and 0.8% in 2013 and 2014, respectively.

France

  • GBTA forecasts total business travel spending to fall by -2.3% in 2013 to $34.9 billion USD. Business travel spending will see small gains in 2014, expanding by 2.7% to $35.8 billion USD.
  • Domestic business travel spending continues to stagnate in 2013 with annual growth of 0.3%. 2014 is expected to be a much better year for domestic business travel in France where spending is projected to grow to 4.6%.
  • International outbound spending will fare significantly worse with expected declines of -6.7%. Losses are expected to slow in 2014 with total international outbound spending falling -0.9%.

Spain

  • Spanish business travel spending is set to decrease in 2013 Q2 – its ninth straight quarter of decline, falling -6.7%. Quarterly growth will resume by the last quarter of the year and continue through 2014 with total business travel spending expected to grow by 1.6% in 2014 to $17 billion USD.
  • Both domestic and international outbound business travel will see significant declines in 2013, falling -5.8% and -9.9%, respectively. Domestic business travel will lead growth in 2014, rising 2.1% as international outbound travel falls another -0.6%.

Italy

  • GBTA expects a business travel spending loss in Italy amounting to -3.9% in 2013 with total spending gains for 2014 projected at 1.2%.
  • Spending on domestic business travel in Italy will fall -3.6% in 2013 before expanding 1.4% in 2014.
  • Spending on international outbound business travel will fall -7.2% in 2013 and another -0.3% in 2014.

Find the latest Tourism & Travel studies in TrendSpotting 2013

Trend Snapshot: The booking and buying habits of UK, German & French travellers

PhoCusWright presented at ITB Berlin in March 2011 key findings of its European Consumer Travel Report which provides an overview of the status of consumer travel in three individual markets – the UK, France and Germany.

Their research uncovers some surprises and important differences between these three markets. The European travel markets are extremely varied in nature.  The report highlights include the following trends:

– Traffic Forecast: A strong ratio of French consumers plan to travel more versus those who intend to travel less. The German outlook is also positive, though more moderate. UK travellers, in contrast, show a very slight growth trajectory for the upcoming year.

– Proliferation of the Internet in making travel plans: Among those with internet access, just 6% of French travellers, 9% of German travellers and 5% of UK travellers plan and book their trips completely offline.

– Search engines hold the key: When shopping for leisure travel options, the majority of French, German and UK travellers typically use general search engines, which rank first among website categories.

– Price is merely a hygiene factor: Even in today’s price-sensitive environment, the most commonly cited reason to visit a website is a prior positive experience. This was indicated by 38% of respondents in France, 50% in Germany and 51% in the UK.

– Hotels are not the main draw: Only 38% of French travellers surveyed enjoy staying in hotels, compared to 72% of German travellers and 82% of UK travellers.

– Smartphone adoption reaches critical mass: Over a third of travellers now carry mobile phones with web browsing capabilities; 38% do so in France, 37% in Germany and 47% in the UK.

– Mobile travel is small, but growing fast: Fewer than 10% of travellers have performed travel-related activities on their mobile phone in the past year. Yet intentions show that the mobile travel audience will be likely to double in the next 12 months.

Other findings show that the age group with the most leisure time in Europe were the 18 to 24 year-olds who are a very tech-savvy generation.

Source: www.newmediatrendwatch.com

Check out other tourism and travel trends at: aboutourism.wordpress.com/trendspotting-2011/

Top 20 Vintage Tourism Ads (Part 1): The best of the first

This first part of abouTourism’s series of vintage tourism ads is a collection of the best posters from the first part of the previous century, the “Golden Age of Travel”, as a remembrance of how it all begun.

Looking at these vintage posters from destinations all over the world we wonder how much things have actually changed over these past 100 years. Even today, during the online revolution and with the availability of affordable and wide spreading media, you will still find tourism campaigns that rely  just on an inspiring photo and logo to attract international tourists.

We cannot help but admire the simple yet powerful designs and colors, while realising that some concepts are not as new as we thought. Most ads were created by design legends and commissioned by the powerful transportation industries or the first national tourism agencies promoting a world of enticing destinations and new modes of transportation. Historical information, wherever available, complete the collection. Enjoy!

#20. Bretagne, Hugo d’Alesi (1903)

Simply because it is probably one of the very first.

#19. Norway – The Land of the Midnight Sun, Ben Blessum (1925)

#18. Athens: the Parthenon, Nelly’s (1929)

The first-dated Greek Tourist poster featuring the Parthenon as photographed by famous photographer Nelly’s, following the foundation of the Greek Tourist Organization during the second period of the political leadership of Eleftherios Venizelos (1928-32).

#17. Montana, USA (1937)

This poster showing an Indian encampment next to a lake, was made for the Unites States Travel Bureau, funded by the WPA, which was created during the Great Depression by FDR’s New Deal. In an attempt to lower unemployment, the WPA hired millions of people from all walks of life, including artists. This poster is from the “See America” series, created under a Federal Art Program and made between 1936-1938 to promote tourism in Montana.

#16. Cote d’Azur, Toute l’Anee, Jean-Gabriel Domergue

Fireworks of bright green and yellow palm fronds burst above elegant vacationers in Jean-Gabriel Domergue’s “Cote d’Azure”. A French Art Deco painter, Domergue (1889 – 1962) began as a landscape painter and student of Henri de Toulouse-Lautrec before achieving fame painting coquettish women as the self-proclaimed inventor of the pin-up.

#15. Cote d’ Azur, Le soleil toute l’anee, Roger Broders


In his job promoting the Paris-Lyons-Mediterranean Railway, graphic artist Roger Broders (1883 – 1953), was pivotal to poster art’s initial wave in popularity. Defining vintage travel poster art of the 1920’s and early 1930’s, his distinctive, exuberant Art Deco style goes along with his ability to evoke the romance and nostalgia of travel. A taste for luxury travel, exotic locations and leisure activities was a feature of the hedonistic post-war years of the 1920s. Sports and outdoor activities were all the rage, and people were travelling more for pleasure than ever before.

#14. Australia, The Tallest Trees in the British Empire, Percy Trompf (~1935)

One of Australia’s most prolific and most celebrated poster designers, Trompf is attributed as designer of “thousands of advertising posters” (Australian Travel Posters p. 29). Known for his “bright, colorful and optimistic images,” Trompf also utilized “natural images . . . to beguile both domestic and international tourists to various regions of Australia” (Ibid p. 29-30).

#13. In a German Forest (Deer), Jupp Wiertz (1935)

#12. Get in the queue for Queenstown, New Zealand (~1930)

“Get in the queue for Queenstown” urges this vintage New Zealand travel poster with its catchy slogan. It shows trampers looking out over Lake Wakatipu toward the Remarkables clambering through a styilised capital letter “Q” with the then small town of Queenstown below them. This was orginally a large screenprinted poster probably issued by either the NZ railways publicity branch or the quaintly named “Department of Tourist and Health Resorts” in the early part of the 20th century.

#11. All Roads Lead to Switzerland, Herbert Matter (1934)

Matter’s eight revolutionary travel posters for the Swiss Tourist office were the first to use photography as collage – purely as a design element such as type. Matter in the years after 1932 produced what are widely regarded as some of the most celebrated posters in the history of design. Commissioned by the Swiss National Tourist Office, his groundbreaking works such as ‘All Roads Lead to Switzerland’  and ‘Pontresina’ further developed his new found awareness of the formal elements of photography. No longer manufactured as discrete isolated images, he now composed the photograph in such a way that it came to function as a single element in the totality of a graphic design.

Stay tuned for Vintage Tourism Ads part 2