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Business travel trends in emerging markets

At a time when western economies are being labelled ‘sick’, emerging economies appear to have been taking their vitamins.

 

What’s it all about?

 

The BRIC countries (Brazil, Russia, India and China) are being hailed as the next big thing in the business world, but what does this mean for the current leading economies; future business trends; and consequently, business travel trends?

 

The economic outlook for 2016...

 

Predicted GDP rises between 2012 and 2016 from the International Monetary Fund (IMF) are as follows:

 

• US – from US$15.5 trillion to US$18.2 trillion
• UK – from US$2.6 trillion to US$3.2 trillion
• China – from US$7.7 trillion to US$11.8 trillion
• Brazil – from US$2.6 trillion to US$3.4 trillion
• Russia – from US$2.1 trillion to US$3.0 trillion
• India – from US$2.0 trillion to US$3.0 trillion

 

The impact on business travel

 

Between now and 2030, Boeing predicts that per annum, passenger air travel to, from and within:

• India will grow at an average rate of 8.1%
• China at an average of 7.6%
• Russia and Latin America at 4.2%

 

Carlson Wagonlit Travel’s own UK transaction figures show that between 2009 and 2010, the number of air transactions for Brazil, Russia, India and China more than trebled.

 

These increases in travel have prompted a host of new air links and a massive hotel construction programme. Britain’s InterContinental Hotels Group, for example, plans to have 100 hotels in Russia by 2020 (it currently only has 11), while market data specialist STR Global says that more than 500 new hotels are currently planned or under construction in China, and the Lodging Econometrics consultancy says there are 454 hotels underway in India and another 198 in Brazil.

 

In the future...

 

The BRIC nations will eventually mature, but there are plenty of others waiting to step up to ‘ emerging’ status. Forecasts published in The Economist just last month suggest Argentina, Colombia, Chile and Indonesia are all set to become the powerhouses of the future.
Watch this space.

 

For more information about business travel to emerging markets, CWT customers can talk to their programme manager, or contact their local CWT branch.

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