São Paulo – Corporate trips should gain prominence in the Brazilian sector. The Brazilian Association of Corporate Travel Agencies (Abracorp) expects growth of between 15% and 20% in the sector this year as against 2010. "For the sector, the World Cup and the Olympics have already begun, as executives and technicians involved are already travelling due to organisation," said to ANBA the president at the organisation, Faustino Albano Pereira.
Revenues for 2010 are expected to be between 7.5 billion and 8 billion Brazilian reals (US$ 4.5 billion and US$ 4.8 billion), according to Abracorp forecasts. According to Pereira, in 2010 the sector posted a significant performance. The number of professionals travelling abroad on business grew 37% from 2009 to 2010. "The tendency is for the country to stand out more in 2011," he said.
In Brazil, the most sought destinations for the trips were Rio de Janeiro, São Paulo and Brasília. Abroad, in turn, Miami, New York and Paris led the ranking. "As highlights, it is worth recalling the growth to destinations in the Middle East and Asia, boosted by the start of operations of carriers like Turkish Airlines, Qatar Airways and, soon, Singapore Airlines," said the president at Abracorp.
Apart from sports events, Pereira said that the expansion of economic activity in the country has stimulated travels for the opening of new businesses and branches. Read below the full interview with the president at Abracorp:
ANBA – The corporate travel sector has been growing at full throttle. What are the reasons for this growth and what is the Abracorp forecast for 2011? How much should the growth be this year?
Faustino Pereira – The main companies in the sector made their strategic planning forecasting growth of between 15% and 20% over the previous year. These figures match the forecast for greater offer of seats at airlines and hotel rooms.
What is the profile of these travellers. In what sectors are the Brazilian companies that travel the most?
In our sector, we deal with business travels. The greater economic activity has stimulated trips for the opening of new business and branches. In a general way, companies are implementing their entry into new markets and sending technicians and managers. Sectors like the petrochemical and pharmaceutical still have high levels of travel. The banking sector is also prominent, due to the aggressiveness in opening new branches or completing inclusion of acquisitions: a task that demands much training and travel.
Are there figures regarding how much these people spend on average in their corporate travels?
Yes. Each corporation aided by an Abracorp agency knows exactly how much was spent and where the funds went for travels, as the sector may represent the second or third main item in the budget of some companies, losing only to wages, technology or raw materials. The average cost of a ticket is 450 reals (US$ 270) for domestic travels and 2,100 reals (US$ 1,250) for international trips. The average hotel fee is around 220 reals (US$ 130) in domestic hotels and 412 reals (US$ 245) at international hotels. We calculate average stay and expenses for each city/destination. In the city of São Paulo, for example, SPTURIS studies show that most of the visitors spend three nights (and four days) in the city and that average expenses are 951.30 reals (US$ 567) per period, including transport and housing.
What are the most sought destinations in Brazil and abroad? Are there figures regarding travels to the Arab nations?
São Paulo, Rio de Janeiro and Brasília are the most common national destinations. Miami, New York and Paris are the main international destinations. As highlights, it is worth recalling the growth to destinations in the Middle East and Asia, boosted by the start of operations of carriers like Turkish Airlines, Qatar Airways and, soon, Singapore Airlines.
With regard to the number of passengers, what was the volume of passengers transported in 2010? Was there growth? And for this year, what are Abracorp expectations for expansion?
It is possible to forward that the sector had significant performance in 2010. The number of professionals travelling abroad on business grew 37% from 2009 to 2010. And the tendency is for the country to stand out further in 2011.
Do you believe that the tendency for coming years is for further growth in corporate travels? How do you analyse this tendency? Should the World Cup and the Olympic Games contribute?
The growth should certainly be between 10% and 15% a year. For the sector, the World Cup and the Olympics have already begun, as executives and technicians involved are already travelling due to organisation and negotiations involving the events and the tendency is for a growing curve with its peak at the games. We also hope for this growing curve to remain after the event.
How many corporate travel agencies are there in the country? Are they growing?
There is not a national record capable of identifying the total number of corporate travel agencies in Brazil. The most important and influential are, in fact, the 27 associates at Abracorp that already answer to approximately 45% of total sector turnover. We are preparing our associates to reach 55% of turnover in three years. Perspectives are promising for all.
*Translated by Mark Ament
