The GBTA BTI™ Outlook – Western Europe report looks at the five largest business travel markets in Europe: Germany, the United Kingdom, France, Italy and Spain that together make up 70 percent of Western Europe’s business travel market, and serve as a strong indicator for the European business travel market more broadly.
Western Europe’s business travel spending is projected to increase to $210.7 billion USD in 2016 and top out at $220.6 billion USD in 2017, 6.0% and 4.7% growth respectively – very positive numbers, but slightly lower than predictions in GBTA’s previous forecast.
“While trips and spending have been bounded by slower European and global economic growth, Brexit’s influence has been negligible thus far,” said Catherine McGavock, GBTA’s Regional Vice President – EMEA. “Businesses and business travelers continue to show their resilience and ability to adapt as Europe has faced an array of challenges recently, but business travel remains strong.”
Germany’s economy remains one of the strongest in all of Western Europe fueled by a robust labor market, low interest rates, rock-bottom energy prices and strong demand for exports. GBTA projects Germany to continue to lead the growth in business travel spending from 2015-2017, with a 7.5 percent compound annual growth rate increase, followed by Spain (6.5 percent), the United Kingdom (4.7 percent), France (4.2 percent) and Italy (2.6 percent).
Country-Level Business Travel Outlooks
Germany – German organizations continue to send more business travelers on the road as it continues to be the strongest business travel market in the region.
Germany’s economy remains one of the strongest in all of Western Europe fueled by a robust labor market, low interest rates, rock-bottom energy prices and strong demand for exports. GBTA projects Germany to continue to lead the growth in business travel spending from 2015-2017, with a 7.5 percent compound annual growth rate increase, followed by Spain (6.5 percent), the United Kingdom (4.7 percent), France (4.2 percent) and Italy (2.6 percent).
Country-Level Business Travel Outlooks
Germany – German organizations continue to send more business travelers on the road as it continues to be the strongest business travel market in the region.
- Total business travel spending will increase 7.4 percent in 2016 and another 7.6 percent in 2017 reaching $73.4 billion USD.
- Domestic business travel will advance 7.4 percent this year followed by 7.8 percent in 2017 reaching $59.7 billion USD.
- International business travel will grow 7.3 percent this year and 6.8 percent next year hitting $13.8 billion USD.
The United Kingdom – Despite the uncertainties surrounding Brexit, the UK’s economy and business travel market have not imploded as many critics feared. Next year will present more of a challenge from the UK’s business travel market though as the downside risk becomes more palpable with many firms likely to postpone or reduce investment, which could lead to a slowing economy.
- Total business travel spending will increase 6.9 percent in 2016 and another 2.4 percent in 2017 reaching $51.6 billion USD.
- Domestic business travel will advance 5.9 percent this year followed by 2.5 percent in 2017 reaching $33.5 billion USD.
- International business travel will grow 8.9 percent this year and 2.3 percent next year hitting $18.2 billion USD.
France – While French business travel has not been quite as challenged as travel in its Southern Tier neighbors over the past few years, growth has been much less robust than healthier European markets.
- Total business travel spending will increase 4.1 percent in 2016 and another 4.2 percent in 2017 reaching $40.2 billion USD.
- Domestic business travel will advance 3.3 percent this year followed by 4.8 percent in 2017 reaching $25.9 billion USD.
- International business travel will grow 5.4 percent this year and 3.1 percent next year hitting $14.4 billion USD.
Spain – Just a couple years ago, Spain’s business travel market was one of the most troubled markets on the European continent, but is now expected to experience one of the highest growth rates over the forecast period, second only to Germany.
- Total business travel spending will increase 7.2 percent in 2016 and another 5.8 percent in 2017 reaching $22.0 billion USD.
- Domestic business travel will advance 8.0 percent this year followed by 5.7 percent in 2017 reaching $17.4 billion USD.
- International business travel will grow 4.0 percent this year and 6.3 percent next year hitting $4.5 billion USD.
Italy – Ongoing political turmoil, obstinate banking tensions and Italy’s sizeable debt will likely continue to hinder investment prospects and create a ceiling for business travel performance.
- Total business travel spending will increase 3.4 percent in 2016 and another 1.9 percent in 2017 reaching $33.3 billion USD.
- Domestic business travel will advance 3.0 percent this year followed by 1.8 percent in 2017 reaching $29.2 billion USD.
- International business travel will grow 6.4 percent this year and 2.7 percent next year hitting $4.1 billion USD.
