The Guild of Travel Management Companies (GTMC)’s second Quarterly Review of 2013 has produced figures claiming business travel is back to driving UK economic growth. The latest review indicates UK exports to non-EU markets are up as a result of increased business travel.
The latest Quarterly Review, which examined the period April to June 2013, analyses business travel transactions and revenue, and tracks them against a range of economic indicators relating to UK plc, such as changes in GDP, corporate profitability, the level of UK exports and the business confidence monitor.
The transaction survey data is collected from the 38 GTMC members and relate to transactions made for a range of travel services including air, hotel and rail bookings. The Guild claims that travel transactions through GTMC members account for at least 80 per cent of the business travel undertaken in the UK.
GTMC Chief Executive, Paul Wait, says: “GTMC members believe that business travel is not a cost to business but a necessary investment to drive economic growth and prosperity in the UK. Our latest Quarterly Review clearly shows the relationship between business travel and UK economic indicators.”
Key findings from the review include:
- The change in business air activity continues to reflect changes in GDP after a six-month lag
- The business travel handled by GTMC members and confidence move in tandem; both the business confidence monitor and the FTSE 100 mirror changes in the number of transactions handled by GTMC members
- UK purchasing mangers are showing increased optimism in 2013; at the same time, business air transactions show a four per cent increase in the second quarter from the volume in Q2 2012
- Business air transactions and corporate profitability move in the same direction and in the second quarter of 2013 both are on definite upward trajectories
- There is a clear correlation between investment into the UK and business travel.
The results also show the value of the entrepreneurial engine, Wait claims.
“It is my firm belief that business travel and the health of the UK economy are closely linked and two new charts in the latest Quarterly Review, looking at entrepreneurialism and the stock markets and their links to business travel, underline that point. Britain is about to get back to business. It is getting back to business travel too – and not before time,” Wait says.
Full review details at gtmc.org
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