Business travel transactions in the second quarter of the year are expected to be flat or show a small improvement at best.
This follows a 3% drop in air transactions and an 11% slump in rail in the first three months of the year, according to the Guild of Travel Management Companies.
The 38-member trade body’s quarterly review shows an overall dip of 4% over the first three months of 2012.
It says there is “clear evidence” that business growth and business travel are intricately linked.
Chief executive Paul Wait said: “The views of the GTMC membership are quite clear – companies must invest in business travel if they wish to see their businesses grow out of recession.
“Business trips are a key driver of growth and this is clearly illustrated in the GTMC quarterly review.
“Three editions on from the launch of the first quarterly review, we have demonstrated that there is clearly a link between various economic indicators and the level of business travel activity.
“It is incumbent on policy makers, business owners and shareholders to take note and act accordingly.”
Key findings from the first quarter of 2013 show:
- Links were examined between corporate profitability, defined as return on capital employed, and business travel activity. As companies have become less profitable over the course of the last two years, air transactions have trended down.
- Investment into the UK and GTMC air transactions are well correlated. As business travel activity increases, British companies attract overseas interest.
- There is a correlation between the level of air transactions handled by GTMC members and the CIPS/Markit Manufacturing Purchasing Managers' Index but recent months have shown some volatility.
- As businesses become more confident, they travel more. It may seem obvious but the evidence shows there is a strong correlation between how British companies feel about prospects and how much business travel companies undertake.
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