Travel Management Priorities for 2013 - Carlson Wagonlit Travel

ChinaProjected business travel spend in 2013: US$223.5 billion (+14.7 percent vs. 2012)The world’s 2nd largest economyPopulation: 1.34 billion (July 2012)90 cities with more than 1 million inhabitants16 percent of the population aged under 154 percent estimated unemployment (2013)Sources: International Monetary Fund, World Economic Outlook (October 2012), Central Intelligence Agency, World Factbook (January 2013), PopulationReference Bureau, World Population Data Sheet (2012)China’s economic growth is likely to accelerate again in 2013 at a forecast 8.2 percent, after slowing slightly overthe last few years (from 10.4 percent in 2010 to 9.2 percent in 2011 and a forecast 7.8 percent in 2012).In line with its booming economy, China’s aviation industry is growing rapidly. More than 90 percent of thedomestic market is shared by four airlines (Figure 19). Three of these (China Airlines, China Eastern and ChinaSouthern, all members of SkyTeam) will fly as a regional alliance in January 2012. SkyTeam remains the largest alliancein China with 44 percent of the market, compared with Star Alliance’s 20 percent. Chinese low-cost carriers offer flightsmainly on sub-routes with the exception of Spring Airlines, which operates primary domestic routes from its base atShanghai Hongqiao International airport.Figure 19Chinese airlines’ share of the domestic market9% 11% 24% 25% 31%OthersHainan Airlines GroupChina Eastern GroupChina Southern GroupAir China GroupSource: CWTChinese high-speed rail has been developing at a remarkable rate, providing an alternative to many air routesfor business travelers. According to the International Union of Railways, 11 China will have 742 miles of high-speedrail in operation and 5,612 miles under construction by 2012, making its network the world’s largest.11Source: International Union of Railways, High-Speed Lines in the World (July 2012)28