New analysis by Collinson Group reveals that UK business travellers spent £1.05 billion on business travel trips to the US in 2015, the first time spend has risen above the billion-pound mark and up 35% from 2014.
Such is the value of the US market that the amount spent in 2015 was more than the combined value of the next two markets: Germany (£451 million, up 26%) and France (£408 million, up 1%).
However, continuing unrest in Germany and recent terrorist attacks in France, together with the current flooding affecting both countries, highlights the need for employers to step up their Duty of Care levels for staff as they travel not just to Europe but to other countries across the globe that were formerly seen as low-risk.
Overall, total spend by UK business travellers was up 30% to £5.82 billion, with the number of individual visits up 7% against 2014 and the total number of nights spent on business travel up 17%. In terms of growth markets, the data showed a huge rise in the number of visits and money spent by UK business travellers to Estonia, Latvia and Lithuania. Estonia tops the overall list in terms of growth, with visits in 2015 up 697% against 2014, with spend up 745%. Latvia saw a 541% rise in money spent and a 375% rise in the number of visits.
Despite a rise in global security risks and concerns around terrorism, the data shows that a number of countries in the Middle East and Asia saw a rise in business traffic and spend: a 995% rise in business spend to Pakistan, and a 197% rise to Tunisia, though both countries saw a drop in the number of visits (-13% and -26% respectively). Hong Kong saw a 35% drop in business travel visits in contrast to mainland China, which saw a 9% rise.
These figures reflect bigger global events with some airlines reducing the frequency of flights to certain destinations, which contributes to the drop in number of trips – but those who still visited often spent more on security and additional travel services due to increased concern about their personal safety and security while there.
The rise in business travel traffic and spend – particularly to fast-developing and emerging economies – comes in the wake of research by Collinson Group which found that many firms are falling short on their Duty of Care responsibilities towards staff who travel abroad on business.
Just 44% of companies said they ensure that their staff are issued with company guidelines for travelling on business before they depart, and only 38% admitted that they conduct risk assessments if the employee is going to an area deemed as high risk. A fifth (19%) of HR professionals said their firm had no corporate travel risk partner or Travel Management Company in place.
|Top 10 fastest growing markets in terms of number of visits|
|2015 – amount of spend||2015 – number of visits||% change in spend vs. 2014||% change in visits vs. 2014|
|Source: Analysis of 2015 Travelpac data by Collinson Group|
Randall Gordon-Duff, head of Product, Corporate Travel, Collinson Group, said: “The UK and the US have a close economic relationship, underlined by the fact that British business travel there has surpassed the £1 billion mark for the first time. The $17.41 trillion U.S. economy equates to more than 22% of the gross world product – so of course it is a vital destination for UK Plc, underlined by the vast amount of money UK businesses are spending to travel there.”