China set to overtake US as world’s top business travel market
Spending on business travel in China tipped to grow 12 per cent this year
This is the year to take stock of the corporate travel sector and the current trends in the Asia-Pacific as the region’s economic outlook continues to dominate global growth.
In line with growth, spending on corporate travel in the Asia-Pacific region remains buoyant. The corporate travel spend in the region reached US$459 billion in 2014, with projected growth of 7.7 per cent in over the next five years.
The China market is of particular interest. Despite lower oil prices and a shift away from public sector consumption towards individual consumption, China remains set to overtake the United States as the top business travel market in the world, with business travel spend estimated to grow 12 per cent this year alone.
As organisations deal with the varying economic conditions in the Asia-Pacific’s increasingly connected marketplace, they must show dynamic leadership and mobilise employees both internationally and regionally in order to stay competitive.
Employers are recognising the need for local talent to gain international experience in order to secure their future in the global marketplace
A number of corporate travel trends have emerged.
Short-term assignments are increasing, with the PwC Talent and Mobility: 2020 and Beyond report showing that 20 per cent of assignments now last less than 12 months, compared with 10 per cent in 2002. This can largely be attributed to organisations looking to plug skills gaps. Indeed, in the Brookfield 2015 Global Mobility Trends Survey, 47 per cent of respondents cited the reason for international assignments was to fill either a technical or managerial skills gap.
