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Business Travel in Europe May Recover in 2013
Even though business travel in Europe in 2012 is predicted to be flat or even lose its positions, many countries will feature increases in 2013 as it is reported by Global Business Travel Association.
“GBTA Business Travel Index Outlook – Western Europe” report predicts that such countries as France, the UK, and Germany will have almost unchanged levels of business travel. The UK hotels may increase their revenues from business travel by 0.7%, French accommodations will get 0.6% less from business travellers, and hotels in Germany will increase their revenue from business travellers by 0.6%.
What’s interesting, all the three countries are expected to benefit mostly from domestic business travellers, while international outbound visitors will spend less. Other countries, for example, Italy, Southern Europe and Spain, are likely to have even bigger declines in business travellers’ spending. The forecasted decline for Italy and Spain estimates 5% and 4.1% respectively.
Of course, both growth and decline of business travel spending depends hugely on economic growth levels of European countries. The growth of GDP of the UK, France and Germany is expected to be 0.7%, 0.6%, and 0.5% respectively. Such small growth is partially the influence of weak economies of other countries in Eurozone.
The total sum of business travel in Germany was US$50 billion in 2011. This is 4.2% less comparing to 2008. Strong economy of the country and large percentage of domestic business travellers (79%) make Germany quite resilient and not much influenced by the debt crisis of the south. The UK hotels feature the second highest level of business travel spending – US$40.2 billion. While the country surely suffers from problems of Continental Europe, its diversified economy and own currency help a lot. Business travel spending in French hotels totalled US$35.6 billion in 2010. The country is still behind the level of 2008, when this figure estimated US$36.6.
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