GTMC figures bring mixed messages
Latest figures from UK travel management companies show business travel transactions have jumped year on year, but average ticket prices are down.
The second quarterly 2015 review from the GTMC, whose membership accounts for over 80% of UK expenditure on managed business travel, showed aggregated transactions were 12% up compared with the same quarter in 2014.
This comes as GDP grew by 0.7% during Q2 and by 2.6% year-on-year.
But, while transactions are up, average ticket prices are down slightly.
The GTMC said this was partly down to strong short haul travel, above average purchasing of tickets with restrictions and long haul economy travel, which some airlines mistakenly think is ‘leisure travel demand’.
Meanwhile, business rail and hotel bookings are growing more sharply than air.
GTMC chief executive, Paul Wait, said the latest figures bring mixed messages.
"Growth of the UK economy is higher than in any other G7 country (except for possibly Japan); inflation is low and the strength of the pound against the euro and dollar is making exports challenging," he explained.
"While the General Election brought stability and renewed market confidence, there still isn’t the confidence levels that were enjoyed in 2014. However, the double digit per cent increase in air, rail and hotel shows clearly that business travel is on the up.
"As businesses realise the opportunities that come with investing in travel rather than playing it safe, past trends show us that the low transaction values will be the next in line to improve.
"On a positive note, preliminary trade figures show that UK investment abroad is increasing and that should precipitate more business travel. Current worldwide economic uncertainty needs to settle into Q3 and then a business travel forecast too should become clearer and steadier."
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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