New report indicates positive growth for business travel market in 2018

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Travel Management Companies (TMCs) can expect a strong year of market growth in 2018, according to a new report.

American Express Global Business Travel has published new analysis indicating that the global business travel sector is poised for a strong year ahead, with improving economic conditions helping to drive greater confidence in the private sector and investment community.

As such, higher fares and increased bookings are both expected during 2018, with Asia leading the way thanks to the strength of economic progress in China and India. A US tax overhaul that has sharply reduced corporate income taxes is also expected to have a positive impact on business travel.

Despite the generally strong outlook, American Express warned that a few factors may drag down market performance, including ongoing geopolitical instability prompting uncertainty among many members of the world business community.

Specifically, it was noted that current US foreign policy measures and efforts to renegotiate trade deals may act as a potential hindrance for international travel, in addition to possible route overcapacity and rapid expansion by low-cost carriers into the market.

Nevertheless, the report said: "The travel outlook looks bright, as economic conditions continue to strengthen and growing business and consumer confidence translates into increased demand for travel."

This comes after a recent report from the Business Travel Show indicated that a large percentage of corporate travel buyers believe they will have bigger budgets at their disposal this year, further demonstrating the growing confidence that TMCs are feeling about the state of the global travel market.

Automating your mid and back-office systems can help to equip your TMC for future growth. To find out how, contact ProCon Solution now.

ProCon Solution A/S
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Phone: +45 4363 2266