Business travel sector shows signs of recovery

The business travel sector has finally shown signs of recovery, according to the Guild of Travel Management Companies' latest transaction report.

The figures, a collation of the GTMC's members' total transactions for the forth quarter of 2009, showed a modest return to growth in the aviation sector, and the beginning of a fight back in the hotel sector.

The rail industry continued to go from strength to strength, while the car rental business remained in decline.

While the GTMC acknowledged that the figures were real reason for confidence, businesses were urged to remain cautious.

The number of business travellers buying airplane tickets had been in freefall since the banking crisis started in late 2008. But after consolidation and capacity reduction across the sector, carriers recorded a 1% year-on-year increase in seat sales. In Q4 of the previous year the figure was an alarming 15% drop.

Hotel transactions, which were down 13% in Q3, scrambled back to an slight 2% year-on-year decrease.

Rail travel has enjoyed a period of unprecedented growth during the recession, helped by business travellers switching from air travel where possible to save money and cut their carbon emissions.

In Q4 it continued its impressive progress by registering a 16% year-on-year increase in tickets sales through TMCs. The GTMC claimed the statistic underpinned the recent call in its Business Travel Manifesto for Government to increase investment in high-speed rail links.

The car rental sector, ravaged by the general recession and blighted by the crisis in the automotive industry which made fleet management extremely difficult, suffered an 8% year-on-year decline.

Anne Godfrey, the GTMC's chief executive said: "The GTMC quarterly transaction survey has always been a telling gage of how UK PLC is performing.  While figures for aviation and hotel accommodation are starting to gain ground on previous quarter performances, they illustrate that the UK economy recovery is on - but very fragile. The next quarter results will be very telling indeed."