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Rupee depreciation will not impact business travel in India as corporates will look overseas to expand exports, according to the Global Business Travel Association.
The association is a research and advocacy group and its members include travel managers from top global companies. The GBTA has set up an India chapter after having representation in Brazil, Russia and China. According to GBTA's forecast, India is becoming a major global business travel market and expects business travel spend in India to grow 13 percent till 2017. In 2012, India surpassed Canada to become the 10th largest business travel market in the world.
"There are always factors that will on a short term basically put any forecast off course. But I think you need to l look at the long term development. A lower rupee should also stimulate exports and exports stimulate business travel on international sectors. It (rising dollar) makes travel expensive but you still have to sell your products. Business travel spend in India is booming and will go up to $ 40 billion in next three years. This will bring to focus importance of effective travel management,'' Welf J Ebeling, vice president (operations- Asia) of GBTA said here on Tuesday.
About 91 percent of business travel spend in India is domestic but Ebeling expects greater thrust on overseas travel assuming stabilisation in global economy. "The key risks could be a sudden spike in oil price. A spike in oil price which ups the price of aviation fuel and impacts air fares. That is one of the big issues. There are lot of factors that play into a spike. You have a domestic inflation which is pushing prices up..You have falling rupee which is affecting.. However have people stopped travelling for business ? Business travel on a long term is basically going to increase.. We see it happen in India and in every other country,'' he added.
