Global business travel industry spending to reach US$1.8 trillion by 2027: GBTA

August 16, 2023

Business-traveller-640 — Expected business travel spending accelerates due to pent-up demand, return of travel and meetings, stable economic conditions and inflationary factors

The global business travel industry has rebounded at a more accelerated rate than expected just a year ago, and is now expected to surpass its pre-pandemic spending level of US$1.4 trillion in 2024 − and grow to nearly US$1.8 trillion by 2027.

These robust gains were fuelled by pent-up demand after the Covid-19 pandemic, more favourable global economic conditions in 2022 and 2023, and recession risks that have yet to happen. These are the central findings from the latest 2023 GBTA Business Travel Index Outlook – Annual Global Report and Forecast published by the Global Business Travel Association (GBTA) in collaboration with Visa.

Expected business travel spending accelerates due to pent-up demand, return of travel and meetings, stable economic conditions, and inflationary factors

The GBTA Business Travel Outlook (BTI) is an annual exhaustive forecast of business travel spending and growth covering 72 countries and 44 industries. Now in its 15^th edition, this latest report outlines the top-level outlook for forecasted global business travel spending and other trends for 2023 to 2027.

New in this year’s BTI is also data and analysis from GBTA’s comprehensive survey of 4,700 business travellers across five global regions, representing insights from employee travellers regarding their business travel preferences, behaviours and spending, including what they report as their average price of a business trip now.

“The headwinds that were anticipated to impact the rebound of global business travel over the past year didn’t materialise and that is good news. This latest forecast now indicates an accelerated return to pre-pandemic spending levels sooner than anticipated as well as growth ahead in the coming years. Business travel spending is a key indicator, but how travel volumes will continue to rebound is yet to be seen,” said Suzanne Neufang, CEO, GBTA.

“The BTI data also reflects the remarkable efforts of the industry to adapt, innovate and thrive despite the challenges, along with the ongoing role and value of business travel to economies, companies and professionals worldwide.

“As travel continues to rebound, we expect digital payments to continue to grow because they make it easier and more secure to do things like purchase plane tickets for business travel or split a check at dinner,” said Gloria Colgan, senior vice president, global head of products, Visa Commercial Solutions.

Highlights from the latest BTI Outlook include:

Global business travel spending is expected to recover to its pre-pandemic total of US$1.4 trillion in 2024 and grow to nearly US$1.8 trillion by 2027.

In 2022, global business travel spending rose 47% to US$1 trillion. These strong gains have continued into 2023, with 32% growth in global expenditures expected this year. The estimated breakdown of the US$1 trillion in business travel expenditures includes US$183 billion in air spend, US$395 billion in lodging spend, US$191 billion in food and beverage spend, US$138 billion in ground transportation spend, and US$121 billion in other travel expenses.

Global spending is expected to recover to pre-pandemic levels by the end of 2024 – faster than the previously projected mid-2026 forecast in last year’s BTI Outlook. Contributing to the accelerated rebound has been the significant stability in the global economy − many advanced economies were projected to weaken or fall into recession in 2023, but this has yet to happen.

Over the past 18 months, the most important factor driving the pace of global business travel’s recovery is the progress made in fighting the Covid-19 pandemic.

The two biggest drivers in the industry’s stabilisation over the last six months have been the return of in-person meetings and events, and the recovery of some international business travel capacity and volumes.

Recovery in business travel continues to vary by region. Western Europe was the fastest-growing region globally in 2022. North America and Latin America saw spending growth accelerate significantly in 2022. Emerging Europe continues to lag in its recovery, challenged by the war in Ukraine.

Regionally, Asia Pacific was the big laggard last year given the delayed reopening of the Chinese economy. Chinese business travel spending fell 4.6% last year, dropping China down to the #2 business travel market in the world for the first time since 2014. However, China is expected to recover back to being the #1 business travel market in the world by end-2023.

Business travel spending recovery also continues to differ based on industry, with construction, education, and professional, scientific and technical activities showing the most resiliency.

The resilience of the global economy was a key factor in the current rebound. However, looking forward, numerous challenges remain, including the war in Ukraine, persistent inflation in certain areas, much tighter global financial conditions and deterioration in the manufacturing sector.

While a promising rebound is expected, there are several factors that could influence the industry’s longer-term forecast. An increased focus on sustainability initiatives, widespread adoption of meeting technologies, growth in the remote workforce, and the rise of blended travel are potential game changers in the future of business travel. (Currently, there is not enough data to solidly forecast the potential impact on business travel spending and volume.)

In GBTA’s survey of 4,700 business travellers across 22 countries and four regions (North America, Europe, Asia Pacific, and Latin America), 82% reported that business travel was very (48%) or moderately (34%) worthwhile in achieving their business objectives.

Business travellers globally currently estimate their own business travel spending, on average, amounts to US$1,018 per person per trip. On average, lodging accounts for US$391, and food and beverage is US$189. Air averages US$182 while ground transportation (US$136), and miscellaneous expenses (US$120) round out the total.

Business travellers say they are more frequently (62%) blending business and personal travel (i.e. bleisure travel) than they did in 2019, with 42% adding additional leisure days to their business trips and 79% of these travellers staying at the same accommodation for business and vacation portions of their trip.

When it comes to payment methods for business travel, 66% of business travellers say their company provides them with a corporate credit card – of that percentage, about one-third (37%) say their company mandates its use for booking business travel.

For business travellers who are provided with a corporate card, 64% have uploaded their card to a mobile wallet. Almost 87% use their mobile wallet for at least 10% of their business transactions, with 33% using them for at least 20%.

The executive summary for the 2023 Business Travel Index Outlook report can be downloaded here.

Gold Coast impresses planners with fresh ideas for events

By Adelaine Ng

August 16, 2023

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Brooke-Campbell — Campbell: Gold Coast's events pipeline is poised for further growth

Destination Gold Coast has impressed with new products and experiences at its annual showcase, winning high approval ratings from both event planners and exhibitors.

This is Gold Coast 2023 (TIGC23) not only exceeded expectations in terms of attendance and leads, it also underscored the value of doing events in the Gold Coast for international event planners, despite higher costs compared to Japan and Europe.

Campbell: Gold Coast’s events pipeline is poised for further growth. Photo: Adelaine Ng

“Participants at TIGC23 were treated to a range of new experiences, underscoring our commitment to catering to diverse markets,” said Brooke Campbell, head of business events at Destination Gold Coast.

“The Welcome Event at Sea World was a huge success, leaving attendees with a fresh and enriching encounter with the Gold Coast. From the conversations in the room, it’s clear that we’ve set the benchmark high, which means we’ll need to raise it even higher next year,” Campbell remarked.

DGC confirmed 72 buyers were in attendance plus 41 exhibitors, an increase in numbers on both counts compared to last year. Additionally, the event has generated an impressive A$50 million (US$32.3 million) in business leads.

When asked about the competitiveness of the Gold Coast as a destination in the face of rising costs, Campbell responded: “We do have a premium product here in Australia so there’s a cost (in delivering that). But there are other things that come to play, such as the legacy they’re going to get from their events”.

However, Campbell opined that the higher costs are temporary, and will come down when airline capacity, currently at about 60 to 70 per cent, improves.

Delegates told TTGmice they were impressed by the showcase this year.

“It’s been a really help for a DMC as ours because so much has changed after the pandemic and we needed to refresh our contacts with suppliers,” said Carol Ru, general manager for PTC Express Travel which represents markets mainly in South-east Asia, China and Taiwan.

“I’ve been inspired by new ideas that I wouldn’t even have thought of before, like yoga on the beach and beer tasting. Our enquiries for Australia are definitely up, especially late last year and early this year, with the Gold Coast being a good alternative to Sydney or Melbourne,” she added.

Rosa Megalina, Indonesia manager for Holiday to Oz Travel, echoed similar sentiments with a huge thumbs up for TIGC23, giving it a nine out of 10 rating.

“It’s been very, very good and helped refresh my knowledge of the destination. My favourite experiences were the Welcome Event at Sea World’s Atlantis Precinct, and our visit to Tropical Fruit World (which included an indigenous address and garden lunch),” she shared.

Exhibitors seemed to be equally happy. “It’s been an exceptional couple of days that has led to lots of requests for quotes,” said Rachel Dallas, head of sales at Home Of The Arts, which hosted the pre-fam dinner event.

“It’s great to get that momentum back after the last few (pandemic) years. There’s just a lot more energy now on the tradeshow floor with people really eager to put on events,” she observed.

The Gold Coast boasts 160 experiences within a 30-minute travel radius. Soon-to-open new hotels – such as the Ritz-Carlton, St Regis, and Mondrian – will add around 3,000 keys to the market. Meanwhile, The Langham Gold Coast, which hosted a stunning gala night for TIGC23, was just launched a year ago.

Looking ahead, the pipeline for future events in the Gold Coast appears robust. “With 102 events in our pipeline, estimated to be worth around A$200 million leading up to 2030, the outlook is promising for continued growth,” said Campbell.

ICCA sings high praise of Bangkok, promises a special congress this November

By Karen Yue

August 16, 2023

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ICCA-Bangkok-announcement — Bangkok was announced as 2023 congress host destination at the 2022 edition

A strong bid presentation by Thailand Convention and Exhibition Bureau (TCEB), marked by public-private unity, the city’s positioning on a sustainable economy and knowledge-based society, legacy initiative, and quality event hardware, was what earned ICCA’s nod when the global association for meetings professionals deliberated on its 2023 congress host venue.

Senthil Gopinath, ICCA CEO, told TTGmice: “In many ways, it was impossible not to (pick Bangkok, Thailand).”

Bangkok was announced as the 2023 congress host destination at the 2022 edition

He elaborated: “(TCEB’s bid) theme of Re-imagining the Future connected with us all, both on an emotive and practical level. The genuine and well-thought-out strategy of positioning Bangkok as a metropolis of a sustainable economy and knowledge-based society complements ICCA’s value proposition and commitments around Sustainability, DEI, and Innovation.

“And, of course, the Bangkok 2032 Vision – which provides the over-arching narrative as the city prepares for its 250th anniversary – is very much a legacy initiative, and legacy is fundamental to what ICCA members and associations believe in.”

Along with the newly expanded and refreshed Queen Sirikit National Convention Center as the congress venue, plus Bangkok’s array of nearby hotels, strong transport links and the promise of a “Bangkok experience”, Gopinath said both the city and the country were able to tick “many boxes” in “a most excellent bid”.

The combination of these winning factors will allow ICCA to deliver “a unique and very special congress experience” to its community, he added.

TCEB president Chiruit Isarangkun Na Ayuthaya said Creativity, Sustainability, and Infinite Possibilities are the three pillars that would uphold a successful ICCA Congress 2023.

“We need creativity to meet new demands and challenges; we need sustainability to meet global calls; we need possibilities to move the industry forward. These three pillars will make the (business events) industry a future-proof driver of economy and social development,” said Chiruit.

Besides aligning the congress with Bangkok 2032 Vision, TCEB is committed to making the event a “true carbon neutral event by incorporating sustainability at the very beginning and as part of the planning process”, as well as investing in the next generation through support for the annual ICCA Young Professionals Forum on November 11.

Chiruit told TTGmice that TCEB is giving ICCA a range of resource support, including financial contribution, logistical aid, and a strong local organising committee (LOC) comprising ICCA Thailand members as well as public and private sector supporters.

TCEB, in collaboration with the Bangkok Metropolitan Administration as co-host, will build a programme that highlights the capital city’s “multidimensional charms”, particularly new developments that emerged post-pandemic. Delegates can expect a Gala Dinner that features Thai culture and mouth-watering favourites; a morning run/walk by the lake; creative sessions and city tours; a fun-filled ICCA Challenge Night; and a memorable closing ceremony.

“We are confident that the Congress in Bangkok will inspire delegates from around the world,” remarked Chiruit.

This would be Thailand’s third ICCA Congress. The country hosted the first in 1985 in Bangkok, with 250 delegates; and again in 2007 in Pattaya, drawing 814 delegates.

When asked about the expected turn-out for the November gathering, Gopinath said registration has been “strong and interest is considerable”.

He said: “We are positive we are going to present a unique and very memorable congress, and our participant numbers will reflect this. Of course, with over 60 plus associations already confirmed, we know this will provide a real impetus for members to come and join us, and use this opportunity to create exciting new business opportunities.”

Gopinath also emphasised the importance of rotating the congress to Asia-Pacific.

“(Our) Asia-Pacific members are so supportive of ICCA in all that we do. The pull to return once more to this region is strong, and it is important we connect on a physical level with such a vital – and influential – part of the world.

“We are also delighted that our Chinese members are once again travelling after finally overcoming the restrictions of the pandemic, so it will be great to see them at the congress, (where they will) explore new business opportunities.”

Eager to welcome the global meetings community, Gopinath added that “the whole ICCA team is working remarkably hard to create and deliver a congress with a difference, where education, innovation, and collaboration will shape the international meetings industry for years to come”.

Geelong’s future convention centre to be named Nyaal Banyul

By TTGmice

August 16, 2023

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GCEC-rendering — A rendering of the Nyaal Banyul Geelong Convention and Event Centre

The Wadawurrung Traditional Owners Aboriginal Corporation has gifted a new name to what has been known as Geelong Convention and Exhibition Centre returning Wadawurrung language to country.

Named Nyaal Banyul Geelong Convention and Event Centre, Nyaal Banyul means “open your eyes to the hills”. It is made up of two Wadawurrung words – nyaal, meaning to open your eyes, and banyul, meaning hill. This name was chosen to encourage people visiting to take time to appreciate the landscapes of Wadawurrung Country.

A rendering of the Nyaal Banyul Geelong Convention and Event Centre

The Western Beach cliffs are a cultural and spiritual place for Wadawurrung People. From the site, Wurdi Youang (You Yangs) and Anakie Youang can be seen to the north, while the hills of the Bellawiyn (Bellarine) can be found to the east, the Fyansford hill to the west and the Barrabul (Barrabool) hills to the south.

The Victorian Government is investing more than A$260 million (US$175.6 million) to build the Nyaal Banyul Geelong Convention and Event Centre precinct as part of the Geelong City Deal, with additional contributions of A$30 million from the Australian Government and A$3 million from the City of Greater Geelong.

The consortium, Plenary Conventions, is delivering the project and will work with the Wadawurrung Traditional Owners Aboriginal Corporation to embed its culture, values, and knowledge into the building and public realm as part of a co-design approach.

The Corporation will also work with the future operators of the centre, the Melbourne Convention and Exhibition Trust, to celebrate and educate the public on Wadawurrung cultural history.

Construction of the purpose-built convention and event centre will commence soon, and is slated for completion in 2026.

Cathay Pacific revamps business loyalty programme

By TTGmice

August 16, 2023

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Cathay-business-class — Cathay brings corporate customers more rewards with Business Plus

Cathay Pacific has revamped its corporate loyalty programme to allow SMEs and growing businesses to manage their business travel on a self-service travel platform.

Cathay brings corporate customers more rewards with Business Plus

Aside from a revamp of the website’s design, the Business Plus revamp includes changes such as Business Plus members now being able to earn Asia Miles to their company Business Plus account. These miles can be used to redeem rewards such as Cathay Silver Membership and Lounge Passes.

Asia Miles can also be transferred to any employee’s individual Cathay account, to be spent on rewards ranging from flights to hotels. The programme also offers priority baggage and seasonal campaigns where members can earn extra miles, lounge passes, or even free upgrades.

Meet in Parramatta the Nesuto Way

By TTGmice

August 16, 2023

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Nesuto-Parramatta-mtg — Be rewarded for meetings at the Nesuto Apartment Hotel Parramatta

Nesuto Apartment Hotel Parramatta in Sydney, Australia, is offering meeting planners a host of rewards for new events booked from now until November 30, 2023.

Rewards include an upgraded tea break with A$1,500+ (US$970) spend, one complimentary day delegate and upgraded tea break with A$2,500+ spend, two complimentary room nights for delegates use, one complimentary day delegate, and an upgraded tea break with A$3,500+ spend.

Be rewarded for meetings at the Nesuto Apartment Hotel Parramatta

In addition, every event booker on a minimum event spend of A$2,500 qualifies for a complimentary overnight stay including breakfast and a bottle of sparkling wine. Nesuto Apartment Hotel Parramatta will also extend a 15 per cent discount on overnight accommodation rates when booked in combination with an event.

Conference packages starting from A$64 per person for full day events.

Included in every Nesuto event booking is an onsite event specialist, free Wi-Fi, a presenter tool kit, a welcome gift, an afternoon surprise and delight, whiteboard and flipchart, delegate service menu, and inspirational doodle notepads.

The 105-key Nesuto Apartment Hotel Parramatta offers a pre-function area, and three individual meeting rooms, all streaming with natural light, inbuilt data projection screens and collapsible walls; these rooms can be combined to form a larger event space for up to 200 people.

Collinson enlarges lounge portfolio in Vietnam

By TTGmice

August 16, 2023

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Lounge-in-Phu-Bai-airport — Phu Bai Business Lounge

Collinson, owner and operator of Priority Pass, has expanded its partnership with SÔNG HỒNG, a Vietnam-based provider of airport services.

The expanded partnership results in Priority Pass Members having access to 26 international and domestic lounges across Vietnam – 18 of which are managed by SÔNG HỒNG.

Prior to the expansion, Priority Pass Members had access to 10 lounges across Tan Son Nhat International Airport (SGN), Noi Bai International Airport (HAN), Da Nang International Airport (DAD) and Cam Ranh International Airport (CXR).

With this announcement, Priority Pass Members can enjoy access to an additional 16 new domestic lounges in airports across Vietnam – 13 lounges in domestic airports are accessible with immediate effect. These include the Phu Quoc Business Lounge (PQC), Phu Bai Business Lounge (HUI), Dong Hoi Business Lounge (VDH), and Pleiku Business Lounge (PXU).

The remaining three additional lounges are scheduled to open soon, and join the Priority Pass network in the coming months.

“With Vietnam recording 101.3 million domestic visits last year and a strong forecast to welcome 110 million visits this year (an increase of around five per cent compared to 2022), including eight million international visitors, this is indeed an exciting time for the travel industry in Vietnam.

“Recognising the importance of this market to travellers, we are excited to extend our relationship with SÔNG HỒNG to ensure that our members can enjoy their bespoke airport lounge services when visiting this memorable market,” said Todd Handcock, global chief commercial officer and president Asia Pacific at Collinson.

Te Pae Christchurch welcomes new head of technology and innovation

By TTGmice

August 16, 2023

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Te Pae Christchurch Convention Centre has appointed Nathan Gardiner as the new head of technology and innovation.

He joins the team after a successful tenure at the University of Canterbury, bringing a wealth of experience and expertise in the field of audiovisual and Information Communication Technology.

Travelport completes Deem intergration; plans global expansion

By TTGmice

August 15, 2023

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Deem-x-Travelport — Deem is now integrated in Travelport+

Travelport has completed the integration of its Travelport+ platform with Deem, a corporate travel management platform, just five months after the acquisition.

Travel management companies, corporations and their travellers that utilise Deem and Travelport+ will be able to access a wide range of rich and relevant content, all in one place, enhanced by the Content Curation Layer.

This Travelport+ feature uses powerful artificial intelligence and machine-learning capabilities to provide agents and travellers with a more modern retailing experience with faster search responses, more pertinent results, and greater accuracy. When integrated with Deem’s interface, this will allow travellers to stay within their corporate policies while ensuring bookings (including NDC) are fully serviceable.

Moving forward, Travelport has big plans for the GDS-agnostic tool. In 2024, Travelport expects Deem to accelerate its international expansion, doubling its global footprint with a focus first in Europe, Middle East, and Africa, followed by Asia-Pacific.

Deem will also implement enhanced emissions data, which is already available on Travelport+.

Sindhorn Kempinski Hotel Bangkok welcomes new GM

By TTGmice

August 14, 2023

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Christian Ruge has been named the general manager of Sindhorn Kempinski Hotel Bangkok.

The German national has a 25-year career in hotel management and leadership across Europe, the US, the Middle East, and Asia.

He was most recently the general manager at Kempinski Hotel Grand Arena in Bansko, Bulgaria.

Global business travel industry spending to reach US$1.8 trillion by 2027: GBTA

Gold Coast impresses planners with fresh ideas for events

ICCA sings high praise of Bangkok, promises a special congress this November

Geelong’s future convention centre to be named Nyaal Banyul

Cathay Pacific revamps business loyalty programme

Meet in Parramatta the Nesuto Way

Collinson enlarges lounge portfolio in Vietnam

Te Pae Christchurch welcomes new head of technology and innovation

Travelport completes Deem intergration; plans global expansion

Sindhorn Kempinski Hotel Bangkok welcomes new GM

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