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China to become biggest corporate travel market

By WEI TIAN (chinadaily.com.cn) Updated: 2014-06-19 17:03

More Chinese companies are opting to use online booking tools and company credit cards, as the country marches toward becoming world's largest corporate travel market, a survey reveals.

"The corporate travel market has evolved rapidly in the past decade in the world's second-largest economy," said Yates Fei, China General Manager of Hogg Robinson Group, a British corporate services company.

China to become biggest corporate travel market
China seen as leading business travel market

China to become biggest corporate travel market
China's travel market expenditure will reach $309 billion by 2015, when the country overtakes United States to become the largest corporate travel market, Fei said.

In 2013, China corporate travel market expenditure was $ 223.5 billion. It is projected to rise by 16.5 percent in 2014 - double the increase of China's GDP growth.

According to HRG's China Travel Trends Report, the majority of China-based multinational companies is still optimistic about future economic developments in the country, and is committed to increase corporate travel expenditure.

"In the meantime, the Chinese government has, and continues, to invest heavily in infrastructure projects, producing a favorable environment for corporate travel," he said.

But for the surveyed companies pursuing cost-savings efficiencies remains their fundamental objective.

"China is currently experiencing a slower growth rate which is leading to an increase in demand for structured corporate travel management. More companies opt to use online booking tools and introducing company credit cards as they realize the vast benefits of cost control," said Fei.

Only 30 percent of the surveyed companies said they have already adopted company credit cards to pay for their corporate travel expenditures, while more than 60 percent said they are not yet engaged in online booking tools.

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