Industry Research

Biz Travel Would Survive Oil Price Spike Better Than Thought

Posted on May 4, 2011 by LCT Staff - Also by this author - About the author

STUDY: Higher oil prices would curtail business travel growth, but the number of trips would still grow.

How high would oil prices have to go before businesses cut back on their travel plans?

A recent study by the GLOBAL BUSINESS TRAVEL ASSOCIATION FOUNDATION finds it would need to be very high.

The group looked at the potential impact of oil prices rising to $125, $150 and $200 a barrel in 2011.

"It found that business travel spending and, to a lesser extent, number of trips taken, would continue to grow in all these situations, but also that high oil prices would take a substantial toll on the rate of projected business travel growth over time," the organization reported.

• It said $125-a-barrel oil would mean a reduction of $5.8 billion or 1.5% in U.S. business travel spending, and about 700,000 fewer business trips from 2011 to 2013.

• At $150 a barrel, business travel spending would be $6.9 billion (1.8%) less than forecast, and trip numbers would drop by 1.8 million.

• The effects of $200-a-barrel oil would be a reduction of $9 billion (2.5%) in spending from forecast levels and 2.7 million fewer trips forecast, the group said.

"This research shows business travel is more resilient than the conventional thinking might suggest," GBTA executive director Michael McCormick said. "So although an oil price spike would be very painful for the travel industry, essential travel would clearly go on, and in fact the number of trips taken would continue to increase."

Source: Executive Travel Magazine

View comments or post a comment on this story. (0 Comments)

More News

5 Ways To Sell Into The Luxury Travel Market

It’s not your father’s high-end market any more. These lessons apply to chauffeured transportation as well.

Trump Travel Ban Could Deter Business-Related Trips

Tech firms and multinational corporations have lashed out at the move, and some recalled employees traveling overseas.

Half Of Companies Allow TNC Use For Business Travel

A GBTA survey finds an increasing number of traveling employees using companies like Uber and Lyft.

Study Shows Jobs Rose In Taxi Industry Despite Uber

The authors believe this is the first serious look at the effects of the gig economy platforms such as Uber on jobs.

What Trump Means For Fleet-Based Businesses

Fleet expert: "If Trump eventually rolls back regulations in the automotive sector, he would likely stimulate growth."

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close