Continued Business Travel Boom Expected for India

India Becomes 10th Largest Business Travel Market in the World

1 December 2014

A report into the outlook of India’s business travel market has predicted the country’s total business travel spend will hit $28.6bn in 2015.

India, which in recent years has seen a prolonged surge in business travel requirements, is expected to see travel expenditure increase a total of 8.6% in 2014, totalling $26.2bn. Additionally business travel expenditure in 2015 is set to grow a further 9.2%. This recent publication contradicts earlier reports, which had previously predicted a 4.9% increase for Indian business travel in 2014.
The report suggested India’s GDP, which grew 4.6% during the first quarter 2014 and 5.7% in the second, was a significant contributing factor to the large increase in business travel. Moreover Indian standards of living and market liberalisation were also attributed.
Welf Ebeling, GBTA Vice President of Operations for Asia Pacific, said: "Growth in business travel spending in India over the last 15 years has been nothing short of remarkable, helping to pace the tremendous performance of the overall Indian economy. Renewed optimism for the Indian economy on the heels of new pro-business leadership is great news for the continued future growth of business travel spending in the region."
The report did suggest the current lack of quality and luxury hotel rooms for business travellers presented a major challenge for India, which could hamper further growth within the area. Yet despite this, the report noted that India’s impressive GDP increase would in time naturally attract investments into hotel development opportunities.
Overall 2015 looks be an equally promising and prosperous year for Indian business travel.
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