Business travel spending is predicted to hit a new high this year and it seems that improved business confidence is to blame, a new report says.
According to buyingbusinesstravel.com, the report published by the Global Business Travel Association (GBTA) reveals that for the first time in four years, business travel spend is expected to increase in all five key markets – the UK, France, Spain, Italy and Germany.
Across these five markets, spend is predicted to reach $186.5 billion (around £111.8 billion) by the end of 2014. In comparison to last year, this is an increase of 5.1 per cent. Next year is set to be even better for business travel though, as spend is expected to increase by a further 6.5 per cent, reaching $198.6 billion (£119 billion), reports prnewswire.com.
The GBTA found that business confidence is on the up, as are firms’ expectations regarding strong economic growth. Moreover, businesses also feel positive about employment, which is contributing to the increase in travel spend.
Catherine McGavock, GBTA regional director for Europe, says that overall the estimations are positive, although some challenges still remain for the business travel industry.
“Continued signs of strength and progress in the European economy and gathering momentum suggest that 2014 will be a transition year,” she explains. “At long last the 2012-2013 recession appears to be over and the European economy on a more solid footing.”