Business travel market set to overtake United Kingdom
Brazil's business travel market will the travel market of the United Kingdom within 2 years if supply can cope, stated a Global Business Travel Association report. At present, Brazil is at number 8 spot in the global corporate travel rankings but, it will overtake countries like France, Italy and the United Kingdom by the year 2015. This year, spend in Brazil is set to reach US$ 34.5 billion, an increase of 14.3 percent. The bulk of this, US$ 27 billion, is spent on local travel, but the increase rate of international outbound travel, at twenty percent previous year, is outstripping this.
The GBTA tells that the demand for hotel rooms has been going up from international and domestic outbound travelers but that there is a huge gap in supply. According to reports, GBTA Brazil president Wellington Costa told that the top challenge facing the Brazilian business travel market is whether the country’s travel infrastructure and supply can keep pace with its increasing demand.
Business travel spend in Brazil has been tripled since 2000 in spite of the global recession and more importantly it is all set to reach US$ 40 billion next year. The Football World Cup and Olympic Games will add to demand.
The GBTA says that that the outlook is very positive but it also warns that investment is required. The report adds that the key challenge will be whether this demand can be met going forward. Currently the supply of hotel rooms and air travel remains constrained, and the manner in which this is addressed will impact the continued growth of the business travel market in Brazil.