China set to overtake US become world’s biggest business travel market by 2015
China is expected to become the biggest market for business travel in 3 years. A recent study shows corporate travel [domestic and international] spending in China may rise by 17% to $202 billion this year and by another 21% to $245 billion next year. China is currently 2nd behind the US in terms of business travel spending with a total of $182 billion in 2011 compared to $250 billion in the US. The UK is ranked 4th globally for [business] travel spending at $38 billion with Japan in third position at $65 billion. China’s international outbound business travel spending will increase by 27% next year. While the total amount spent is expected to surpass the US by 2015 as China continues its strong growth. No wonder the UK airports all want to get their hands on the Chinese passengers.
China set to become world’s biggest business travel market
22 May, 2012
by Rob Gill (ABTN
China is expected to become the biggest market for business travel within three years according to research by the GBTA.
The association’s Business Travel Index (BTI) is forecasting that corporate travel spending in China will rise by 17 per cent to $202 billion this year and by another 21 per cent to $245 billion next year.
China is currently ranked second behind the US in terms of business travel spending with a total of $182 billion in 2011 compared to $250 billion in the US. The UK is ranked fourth globally for travel spending at $38 billion with Japan in third position at $65 billion.
GBTA’s first BTI Outlook study on China forecasts that the country’s international outbound business travel spending will increase by 27 per cent next year. While the total amount spent is expected to surpass the US by 2015 as China continues its strong growth.
Michael McCormick, GBTA chief operating officer, said: “With China on a robust upward trajectory in business travel spending, they are quickly becoming a world leader in the business travel market.
“China’s phenomenal economic growth over the last decade has been mirrored in business travel which is now a key contributor to, and benefactor from, the country’s expansion.
“We forecast significant increases in business travel by Chinese citizens over the next two years with at least two-thirds of the growth being real increases in trips and spending as opposed to rising travel prices. This should also be accompanied by GDP growth rates of 8-9 per cent a year.”
Number of premium passengers falling on European – and global – airlines
IATA said in December that the share of premium seats as a portion of total travel is contracting, with premium seat share falling back towards the lows of early 2009 when it touched 7.5% of total traffic. Also that there has been a degree of substitution away from premium travel to economy, as businesses seek to cut cost in difficult economic conditions. IATA said that Europe’s airlines had the lowest average profitability of all the world’s regions. So they want higher numbers of business passengers, which inreases profit. In January IATA said demand for premium travel had been weaker in the 2nd half of 2011, and on in some areas a contraction or slowdown in economic activity has reduced business travel. Also business travellers have switched from premium to economy, especially on flights within Europe. Airlines may ? normally depend on premium travel for around 30% or more of their income.
IATA very excited about huge increase in Chinese aviation
Date added: May 23, 2012
China is now 2nd in the world for domestic air passengers, 7th for international passengers and 4th for international cargo. China has 19% of the world’s population. Chinese carriers handled about 290 million passengers in 2011, an 8.2% year-on-year increase – with perhaps a 10% rise expected in 2012? Globally, IATA expects that: “Of the 877 million additional global air travelers expected to fly in 2015 than in 2010, more than 212 million will be on journeys within or connected to China.” Beijing Airport now has the 2nd highest number of passengers in the world (after Atlanta). IATA wants Beijing Airport to expand further, into an even more massive hub, or else for the Chinese to build a second huge hub airport. China is looking to increase its share of world trade from 10.4% to 15% and IATA thinks aviation connectivity will be critical to making that happen.