Good news for any corporate event venue in Sutherland Shire or anywhere else in the world, as the corporate travel sector saw a period of great growth for the year of 2018, with data and research from experts in the industry suggesting that this might continue for the foreseeable future.
The Global Business Travel Association’s (GBTA) annual convention in San Diego, California was attended by 7,000 business travel professionals from across the world, who were all working to make the most of the growth the field was experiencing in.
Good news came from the GBTA itself and Rockford Analytics, which predicted that 2018 might be the best year on record for the overall growth of the industry, which would finally mark an end to the uncertainty that has been problematic in the industry following the Great Recession.
From 2016 to 2017, business travel expenditure went up by 5.8%, to US$1.33 trillion, and projections for 2018 expect an increase of about 7.1%, which is the biggest increase for the industry since its bounce-back following the recession which ran from 2010 to 2011. The big difference with this increase is that the industry isn’t clawing its way back to how it was last time, it’s shooting past its own expectations.
While this is good news for any corporate event venue in Sutherland Shire and across the world, the outlook for the future is a bit more problematic.
GBTA Executive Director and COO Michael W. McCormick says that this growth could mark the end of the era of uncertainty but the issue is that protectionism is increasing across the world at the world time possible, with McCormick saying that the direction global trade policy is taking is the biggest variable that could derail the recovery of the industry.
Should the US, China, and the EU proceed with the proposed retaliatory measures that they’ve been planning, the global economy will take a hit, more than just corporate travel, with projections suggesting that the US will be suffering the most should these methods come to pass, with the UK already feeling the effects of Brexit.
Instability in the global economy could also lead to higher interest rates in the market, which could lead to corporations spending more on dealing with debt than sending their employees across the world, which would affect the industry at large.
Nevertheless, the projection remains positive, with business travel spending growth expected to sit around 5% for the next three years, with a projected increase of 5% for 2020.