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China Tops Global Business Travel Market

According to GBTA’s latest business travel forecast, China accounts for 25 percent of business travel spending. This is a dramatic increase from 2000, when they held just 5 percent of the market.  China is now considered the fastest growing business travel market in the world.

China’s Growth To Top Of The Global Business Travel Market

For China, their total business travel spending is expected to reach 9.2 percent, or $317.9 billion by 2016. In 2017, the expected increase is slightly lower at 8.4 percent. Though it is slowing down, this is still a giant leap ahead of the United States. For comparison, in 2017, U.S. business travel spending is expected to reach $293.1 billion. That is a $51.5 billion dollar difference!

The GBTA Executive Director and COO, Michael W. McCormick,  stated this is “demonstrating the truly global nature of today’s economy.” He added, “We expect longer-term spending growth to continue to moderate until Chinese policymakers can achieve their goal of rebalancing the economy and diverting resources away from investment and towards consumption.”

China Continues To Ride The Wave

Of this 25 percent growth, much of it came from domestic ventures. They are now setting their sights on global carriers. On top of that, vying for top margin travelers.  From Traveller.com.au, flights from the South Pacific and Asia is the strategy to begin with. The industry is already saturated with big hitters like Cathy Pacific, Qantas, and Singapore Airlines. Also standing in their way is the perception left by past safety records.

This will not be an easy battle for China’s airlines, but it’s one that can’t be passed up. According to data from the International Air Transport Association, premium passengers account for only 8 percent of travelers. But, these premium travelers generate close to a third of revenue.  To increase their chances, Chinese airlines are stepping up their game in comfort and premium services. Hainan Airlines’ business class, for example, now offers  menus by Michelin star chefs, top amenity bags, and comfortable seating. Expect a big push from Chinese markets in the future, but they certainly have a battle ahead of them.

Chirstopherson Business Travel is a travel management company for businesses. With more than 60 years of experience, we focus on travel—so busy professionals don’t have to. Learn how we can save you company time and money on travel by contacting us today.

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Travel News

Streamlining Visa Applications and What That Might Mean for the Travel Industry & US Economy

In 2000, the top tourist destination in the world was Orlando, Florida, home of Walt Disney World, SeaWorld, and Universal Studios, just to name a few attractions. But by 2010, Orlando was no longer number one, or even number five, or ten. Though it is still is one of the top destinations for Americans to visit, the number of foreign visitors has dropped significantly.
Orlando isn’t the only city to have seen such a decline. Los Angeles, Las Vegas, New York City, and San Francisco have all seen their inbound tourism drop off. But why? Well, part of the reason is because following the 9-11 terrorist attacks, the USA made the process of getting a tourist visa much more difficult if the traveler wasn’t from one of the countries involved in the Visa Waiver program.
However, US President Barack Obama recently announced that he has ordered this process to be streamlined in an effort to make it less cumbersome, and therefore more appealing, for foreign tourists to visit the United States. It is estimated that by speeding up the process in countries like Brazil and China, inbound tourism will create up to one million new jobs over the next decade. Additionally it will increase tax revenues at all levels of government since inbound tourism generates more than $134 billion in revenue each year.
How will this happen? The first steps will include increasing the ability of embassies to process more applications in a shorter time frame. This will require additional investments in infrastructure as well as hiring more staff. Also Taiwan will be added to the list of countries in the Visa Waiver Program. Additional steps will also then be taken to make it less burdensome for applicants by eliminating many of the bureaucratic hurdles that currently slow the process down.
There are several additional articles that discuss this action and the impact it will have on both the travel industry and the US economy, but here are two I found informative via Airwise.com and DailyBreeze.com.