TM

HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future Wimberly Interiors present a stunning 7-page portfolio of hotel design trends The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

www.hotel-yearbook.com

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BUSINESS TRAVEL IN 2014

Business travel trends: Four things to expect in 2014

by Michael W. McCormick i The Global Business Travel Association (GBTA) is bullish on the future of business travel. Global business travel spending is on the rise, and they expect that trend to continue through next year and beyond. In fact, their most recent GBTA BTI Outlook Annual Global Report & Forecast , a comprehensive study of business travel spending and growth covering 75 countries across 48 industries, shows steady business travel spending in the second half of 2013 that is expected to lay the foundation for 8.2% growth in 2014. We asked Michael McCormick, the GBTAs Executive Director, for his take on the near term.

For most businesses, face-to-face interaction and relationships formed through business travel are key drivers of success. Simply said, business travel drives business growth.

Here are four business travel trends to expect in 2014: 1. Economic shifts are fundamentally reshaping the business travel landscape With economic expansion approaching or exceeding double digits in many emerging economies, the business travel landscape is set to change significantly in the coming years. Markets like China, India and Brazil are experiencing rapid growth, giving them the opportunity to become major global players in business travel. This could permanently reshape the business travel landscape. 2. Asia-Pacific region to dominate global business travel China is growing its business travel market faster than any other nation, and continues to close the gap on the USA as the largest business travel economy in the world. The surge in Chinese business travel spend has been driven by domestic and international outbound business travel, with expansion noted for both transient and group meetings and events travel. In 2014, total business travel spend should grow 17.2% a phenomenal increase. 3. Emerging markets worldwide will play an increasingly pivotal role in the business travel industry India is quickly becoming a major player in global business travel as well. In 2012, India surpassed Canada to become the 10th largest business travel market in the world, spending a total of $22.1 billion on business travel. Over the next five years, GBTA expects Indias business travel spend will grow

TOTAL BUSINESS TRAVEL SPENDING TOP 15 MARKET 2012

2012 TOTAL BTS (Billions USD) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 United States China Japan Germany United Kingdom France Italy South Korea Brazil India Canada Aust ralia Russia Spain Netherlands World
12 HOTEL Yearbook 2014 annual edition

2012 ANNUAL GROWTH IN BTS 4.4% 13.2% -1.2% 1.1% 0.1% -2.1% -7.5% 2.8% 9.3% 5.8% 1.4% 2.8% 2.6% -8.0% -4.5% 3.4%

$262 $196 $65.2 $50.5 $40.2 $35.7 $32.7 $30.5 $30.1 $22.1 $22.0 $21.1 $20.4 $17.9 $17.8 $1,061.2

Michael W. McCormick accepted the position of Executive Director and Chief Operating Officer (COO) for the Global Business Travel Association (GBTA) in August of 2009. Over the past four years, with the support of a progressive Board of Directors and highly dedicated staff, he has led the organization through a period of transformation resulting in member growth of 106% over that same period. GBTA is the worlds premier business travel and meetings organization. Collectively, GBTAs 6,000-plus members manage over US $340 billion of global business travel and meetings expenditures annually. McCormick comes to GBTA with more than 20 years of travel industry experience, having most recently served as Managing Partner of Hudson Crossing, LLC, a successful travel industry advisory business.

at a compound rate of 13.5%, making it one of the fastest growing markets in the world. Latin American business travel totaled $49 billion in 2012. Brazil is by far the largest business travel market in Latin America, with total business travel spending of $30 billion in 2012. Brazil has the potential to become a major business travel market over the next decade, but will need to re-establish more robust economic growth to do so. Total spending on Brazilian business travel is expected to grow 7.3%, on average, over the next five years, becoming the 6th largest business travel market in 2014, advancing past Italy and France. The chart below puts the worldwide business travel landscape in perspective. BRIC COUNTRY GROWTH Country China Brazil India Russia 2013 15.0% 14.2% 10.4% 8.5% 2014 16.8% 15.9% 13.0% 8.2% 2015 13.6% 3.4% 13.8% 7.2% 2016 12.3% 4.2% 14.0% 7.9% 2017 11.5% 6.0% 13.2% 7.2%

4. Technology will continue to influence business travel In our fast-paced world, often the only constant is change itself. Innovative technology is a major driver of change today, and that is most certainly true in the world of business travel an ever-evolving profession at the forefront of our global economy. New technology and change is not something to fear, however, but rather something to embrace. The influx of smartphones and tablets means travelers are always connected and have travel purchasing information at their fingertips. They can find travel suppliers, read reviews, and book on the go. Travel professionals can present their travelers with tailored options that optimize their travel experience. Multiple tools exist in the corporate travel market to find the best rates. Adoption to mobile booking tools will only continue to grow. The use of technology in business travel management is here to stay and will always be evolving. American novelist Normal Mailer once said, Growth, in some curious way, I suspect, depends on being always in motion just a little bit, one way or another. The business travel industry is one that is always in motion.

DEVELOP MARKET GROWTH U.S. Canada UK Germany 4.5% 22% 1.9% 5.1% 5.9% 2.6% 3.7% 5.0% 4.2% 3.3% 8.1% 6.6% 3.2% 2.5% 7.5% 5.6% 3.3% 2.4% 7.9% 5.6%

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TM

HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future ESPAs Sue Harmsworth on the coming changes in the global hotel spa industry The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

This e-publication may be ordered online | 19.50

www.hotel-yearbook.com

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