The Guild of Travel Management Companies (GTMC), a UK-based professional body for travel management companies, has published its second quarterly review for 2013, which it claims shows a direct correlation between the level of business travel undertaken and economic growth.
The review shows that exports to non-EU markets have increased in line with an increase in the uptake of business travel. Based on figures from April to June this year, GTMC analysed business travel transactions and revenue, and compared them with a range of economic indicators relating to the UK’s economy. These included changes in GDP, corporate profitability, the level of UK exports and the business confidence monitor.
38 GTMC members provide data for the survey, with the Guild claiming that 80 percent of business travel undertaken from the UK is attributable to its membership. Air, hotel and rail bookings were among the transactions that contributors to the study provided.
Paul Waite,GTMC’s chief executive, said: ‘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.’
Based on the information that it gleaned, GTMC derived that:
– 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 managers are showing increased optimism in 2013; at the same time, business air transactions show a four percent 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.