A comprehensive report by GBTA Foundation has just been released.  The report which was conducted by the research department of GBTA analyzes the current growth and spend projections for business travel during a five year time frame from 2011 to 2015. Visa who sponsored the study, states that in 2010, business travel spend grew by 8.4%. The previous year, the spend had fallen by 7.8%.  Predictions for 2011 project another 9.2% increase on  spend for business travel globally. This will make the industry slightly over a $1 trillion dollar industry.

Global economic recovery is reported by the study as happening at two different levels.  First, the annual compound growth in countries such as China, India, Russia and Brazil spend on business travel is expected to increase faster than in countries such as Germany, France and the United States as much as three times which have developed economies.

The following charts projects the  business travel spend annual compound growth for the years 2011 through 2015

• Taking Off                                   Cruising Altitude

• Brazil 7.0%                                     Germany 2.9%
• Russia 7.1%                                    France 3.3%
• India 10.8%                                    U.S. 3.8%
• China 11.2%                                   UK 5.4%

Michael W. McCormick, executive director and COO of GBTA states that the recovery is occurring, however, just not as fast as we would all like to see.  He continues that signals indicate that the growth will continue.

Predictions were greater for last year for global business travel than expected and due to various positive elements which were responsible for this.

First, during the “Great Recession” there were stringent cost controls placed which has strengthened the corporate balance sheets and profits.  During a GBTA Foundation study in 2011 that relative to sales,  aggressive cuts in travel budget were stronger through this time than one would have expected.

Second, International business was boosted more than predicted in growth of the global trade.

Lastly, rebound in travel spend is occurring due to inflation in travel, particularly in air fares.

Global Business Travel
In 2010, global business travel spend grew by 8.4%.  The previous year, the spend had fallen by 7.8%.  Predictions for 2011 project another 9.2% increase on  spend for business travel globally.  This makes the  industry  slightly over a $1 trillion dollar industry.

A pattern of new world order is beginning to be shaped in the regional distribution, volume and patterns of business travel globally.  The trouble which the world has been having with slowdown of consumption, real estate and debt is responsible for this new  pattern.

Another reason for this new pattern is that of the pattern and volume of the International trade.  This niche is currently increasing at a steady rate of 9 percent per year.  This is the expected projection for business travel globally for 2011.  The shift will continue for global travel.

Global Business Travel Sales and Index
A Business Travel Index was created by GBTA which measures the current and projected level of business travel.  The Global Business Travel Index was indexed on a base year of 2005 and derived from total Business Travel Spending.   The Global Business Travel Index as of 2010 is at 133.  It is projected to expand in 2011 to 145 and by 2015 should sit at 193.  To compare the global business travel index, the China, U.K and India business travel index was 286, 95 and 197 and the United States business travel index was 109.

The Business Travel Index, as stated by McCormick, is a model of where travel is and where it is projected to go.  The overall state of the economy closely correlates to business travel.  McCormick continues that as projected from research the increase should be steady.

Global Trade and International Business Travel
Many emerging economies have been fueled by global trade growth.  In Korea, Japan, Germany and the U.S. it has also aided developed marketing during the recovery.  The improvement of International trade during 2010 was largely responsible for this growth.  Export performance and International outbound business travel have combined.  For the next eight quarters in the U.S. International outbound business travel and exports are expected to grow 10% year over year.