The Global Business Travel Association increased its outlook for U.S. business travel spending this year, thanks in part to stronger projections for domestic business travel.
GBTA projects total U.S. business travel spending this year will reach $273.3 billion, 4.3% higher than last year's level and up from its April 2013 projection of $268.5 billion. GBTA executive director and COO Michael McCormick noted a "rise in domestic travel spending" as "companies are seizing on opportunities closer to home." At the same time, due to weaker economies in Europe and China, the organization lowered its projection for international outbound travel spending from the United States to $33.1 billion from $33.3 billion in the April forecast. The new figure still represents a 3% increase from 2012 levels.
While travel cost increases are driving much of the higher spending forecasts, GBTA projected that 2013 U.S. spending per business trip would increase by 1.3% year over year after accounting for price inflation. However, GBTA projected the actual number of 2013 trips taken by U.S. business travelers to decline 0.4% year over year, however. Similarly, the organization projects the number of U.S. trips for group business travel to decline 0.3% this year, but group travel spending to be up 5.3% to $117.1 billion.
GBTA said spending increases should continue in 2014, with U.S. business travel spending to increase 6.9% year over year, and the number of trips to increase 1.5%.
Source: Business Travel News