Spain remained one of the economic stars of the eurozone in 2024, outgrowing France, Germany and Italy during the year.

The Spanish economy grew by 3.2 per cent during 2024 on the back of GDP growth of 2.5% in 2023. Only the economies of Malta, Croatia and Cyprus did better in 2024 compared to the previous year. Despite that, the number of business trips made by Spanish residents fell by 11 per cent to 15.9 million in 2024 compared to 17.8 million the previous year, according to the country¡¯s official statistics body INE.

The average duration of a business trip fell slightly from 3.60 to 3.53 days. Travel agencies saw turnover increase again in 2024, up by 7.3 per cent although this considerably down from the 27 per cent experienced in 2023.

*Estimated

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Several travel agency groups had another great year. El Corte Ingl¨¦s said its 2024 financial year was an outstanding year for its travel businesses. Revenues rose to €2.1 billion while earnings from travel were €101 million, up from €93 million in 2023.

Spain¡¯s TMC sector is still waiting for news from the country¡¯s National Markets and Competition Commission. In December 2023, the commission announced it had launched an investigation into whether a number of travel groups, including El Corte Ingl¨¦s, Nautalia, IAG7 and ?voris, had violated competition rules relating to public tenders for the provision of travel agency services. The TMCs have all denied there was any collusion over the government contracts. There has been no further news from the commission. If found guilty, the TMCs could face fines of up to 10 per cent of their turnover.

Spain is in the top 15 business travel markets globally. Spending in 2023 was around €21.4 billion. GEBTA ¨C the Spanish TMC association ¨C suggests that 2024 would be only slightly down on this figure, which had risen sharply in the previous year, and is down to a moderation in rising travel costs, says GEBTA¡¯s Marcel Forns.

Spain¡¯s meetings industry closed the year with a turnover of €14.3 billion, 7 per cent more than 2023 and higher than before the pandemic.

Major suppliers in the Spanish market also performed well in 2024. Iberia made operating profits of €867 million during 2024, down by €73 million (7.7 per cent) on 2023¡¯s record figures. Group revenue was higher at €7.5 billion, up from €7 billion the previous year. The figures have been buoyed by the introduction of the A321XLR aircraft, for which it was the global launch customer. ¡°This aircraft has allowed us to operate thinner transatlantic routes more profitably and sustainably,¡± says Iberia CEO Marco Sansavini. The airline has secured a number of SAF agreements with corporate clients and increased consumption by nearly 14 times compared to the previous year.

Despite fewer business trips, hotel rates in Spain rose during the year, largely thanks to a substantial increase in leisure visitors to the country. Research from Cushman & Wakefield for the year revealed that hotel rooms in Spain were 8.9 per cent more expensive in 2024 than 2023. The average daily rate across Spain is now €158.40. Madrid is experiencing a surge in hotel prices, with the ADR increasing to €170.80 from €149.80.

Looking ahead, business travel will get a boost from healthy GDP growth which is projected to grow by a further 2.5 per cent in 2025, as long as a further escalation of trade measures and domestic political fragmentation do not derail this.