A golden age for business travel?
When we think of travel’s golden era we probably consider transatlantic cruise ships and intrepid travellers setting sail into the unknown. The world is much smaller now and global travel is set to enter a new chapter, where Asia is the centre of the world.
More people are taking to the skies and the world is shrinking. It’s never been easier to travel from one corner of the globe to another and the global travel industry is reaping the benefits. Analysts predict that we are entering a golden decade for the global travel industry which will see the industry grow and expand.
The reasons are rooted in the expansion of travel into new markets that will begin to reap the benefits and mature. It is predicted much of the growth will be driven by Asia which by the end of the next ten years, will account for 55% of worldwide travel growth. In a report compiled by advanced travel solution provider Amadeus and Oxford economists it is believed that China will overtake the US to become the largest source of outbound travel spend in 2014; in 2005 the amount spent on travelling outside of China from within was 1%, by 2023 it is predicted it will be 20%.
In fact the same reports suggests that over the decade from 2013 to 2023, the flow of visitors to and from Asia will grow at an annual rate of 15.1%, double what it has been for the last decade. The Middle East and Africa are also expected to rise in prominence.
More money is expected to be spent on global travel over the next ten years. Russia’s spend is set to rise from $50bn US in 2013 to around $100bn US in ten years’ time. Brazil’s spend is predicted to double while India and Indonesia’s will treble. In Europe business travellers are fuelling the rise and are expected to account for 15% of future global revenue growth, North Americans will represent a 7% growth. Meanwhile in North East Asia it is predicted that corporate fliers will account for a 42% growth in global outbound travel spend, South East Asians representing a 13% growth.
It’s not just who is travelling but when that’s set to change. More global travellers are set to do their journey times overnight, suggest they’re travelling across greater distances and crossing time zones.
For 26 years, Clarendon Serviced Apartments has watched the global travel industry grow. From our HQ in London we have seen new markets open up and corporate travellers embark on new journeys to new destinations. The global travel industry has weathered a storm during the recession and the fact it is bouncing back is great news for the travel industry. A greater diversity of travellers means we are doing business around the world and suggests a global recovery is on the cards. This has been a good year for Clarendon with the launch of new developments in Soho and Ealing as we expand our portfolio. Demand continues to rise and if it continues to do so greater expansion is likely. The future certainly looks rosy for this travel provider.