All eyes on the east; what 2014 has in store for business travel
Growth and wealth is springing up in unexpected corners of the globe. A rise in spending power means business travellers will need to be accommodated when they arrive in London. Clarendon is looking east.
As we wait for all the cards to settle again after the economic crisis, new trends are beginning to emerge that will impact the business travel market. Different countries reacted in different ways to recession and pulling their economy out of the doldrums. The effects of those varying tactics are beginning to be felt. One of those effects is on the cost of living and doing business.
There is no firm consensus on the optimal relationship between inflation and GDP but for a country to do business at home and abroad the cost of living needs to be relatively low while having a product people want to buy abroad. Carlson Wagonlit examined trends in business travel and as one of the contributory factors it looked at growth and in which countries it is likely to occur over the next twelve months.
Their results indicate that 2014 looks like a positive year for the east. China and India are already anticipated to enjoy a growth period but their Asian expansion pushes much further than that. Indonesia and Peru are set to benefit from a projected inflation well below their predicted GDP growth. The Philippines, Singapore and the UAE each have strong growth predicted. The US and Brazil look to be in a good position but around them Argentina, Chile and Venezuela are set to have inflation outpace GDP growth which has a negative impact on their projected growth. All eyes, therefore, switch from the west to the east.
This will undoubtedly have an impact on London’s business traveller market. London is especially popular with Asian business. Dubai is a central business hub for Asia, being just seven hours between Delhi, Singapore and Beijing. Yet London is the next international hub along (just seven hours from Dubai) for Asian business looking to make its mark in the west.
This trend is illustrated by China’s tech giant, Huawei, announcing it is to open a London headquarters. The new office will handle Huawei’s financial operations and it is part of a £1.3 bn investment in the UK. Undoubtedly, the decision to opt for financial expertise in London is thanks to The City and the existing presence of financial excellence in London. This investment is likely to lead to more jobs, more business travellers and more people looking to stay in the capital.
A new market opening up and casting it sights on London is great news for the capital’s business travel industry. New members of staff who are hired will need somewhere to stay temporarily. Clarendon has a wide range of serviced apartments in Canary Wharf, The City, south-west London and the west end making a morning commute stress-free. It is a cost effective solution and works out at being cheaper than a stay in a hotel. As well as relocating staff members, executives on a business trip to London will benefit from the luxurious and centrally located apartments. Clarendon has 25 years of experience of accommodating business travellers from around the globe so looks forward to opening the door to new customers from the east. 2014 looks set to be an exciting new year.