Visa and GBTA optimistic on India's biz market

Novotel Amedebad attracting corporate business in India

Business travel growth will advance another 9.2% in 2015 to $28.6 billion.

The Global Business Travel Association (GBTA) Foundation, in its India outlook report on the business travel market, notes business travel spend will grow by 8.6% in 2014 to $26.2 billion over the previous year.

Business travel growth will advance another 9.2% in 2015 to $28.6 billion.

The report is sponsored by Visa Inc, whose SVP and head of global commercial solutions, Tad Fordyce, said, "The report forecasts business travel growth in India to return to high levels not seen for years." 

India's GDP grew 4.6% during the first quarter of 2014 and 5.7% during the second quarter – the best performance since 2011.

Consumer spending is also up, showing a good forecast for travel in the first quarter of 2014, expanding by 13% - “a rate not seen since the early 2000s and businesses are also feeling more confident in India's economic prospects. 

"Part of the story behind businesses' rising optimism is found in the external sector as improving exports are a key reason for the upward revision to GBTA's business travel outlook,” said the report.

International outbound (IOB) travel from India has experienced volatility over the last few years. 

GBTA expects IOB spending to grow by 4.8% in 2014 due to slower trade growth in the first half of the year. As it picks up the pace in the second half of 2014 and into 2015, IOB spending will gain strength and is projected to advance 9.7% in 2015.

Infrastructure, particularly a lack of supply of quality hotel rooms for business travelers, presents a challenge. However, there is increasing evidence that a more business-friendly administration and rising confidence in a more robust economic recovery are spurring hotel growth in the region, the report noted.

"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," said Welf Ebeling, GBTA vice president of operations for Asia Pacific. 

"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."