It’s finally here! The latest GBTA Foundation Business Travel Index (BTI) is a very solid resource for corporate travel executives but also meeting strategists.
GBTA is forecasting that U.S. business travel spending is projected to top $292 billion in 2014, and anticipates a nearly 7% year-over-year rise in spending.
This indicates rising management confidence in the U.S. economic recovery — which tends to accompany increased travel budgets and fewer travel restrictions.
The report’s other key findings include:
- The total number of domestic person business trips in 2013 was revised upward to 468.8 million from the previously reported 448.7 million, a 4.7% year-to-year gain. Spending remained consistent with the previous forecast at $241 billion, indicating a lower-than-estimated spend per trip.
- Group business travel significantly outperformed individual business travel in 2013, growing 8.6%, a significant indicator that the business travel industry is recovering from the Great Recession and increasing discretionary spending.
- While individual business travel volume is only expected to grow 2.3% in 2014, spending is expected to increase 5.6%, driven by higher prices and additional spend-per-trip.
- International outbound business travel continues to rise, with trip volume expected to grow 6.6% and trip spending increasing 10.3% in 2014.
This data indicates that the global economic recovery is underway. Although things appear to be on the upswing, GBTA continues to be cautious. Lower-than-expected inflation poses risks for advanced economies, there is increased financial volatility in emerging market economies and increases in the cost of capital will likely dampen investment and weigh on growth.
The GBTA BTI™ Outlook – United States report is available exclusively to GBTA members by clicking here. Non-members may purchase the report through the GBTA Foundation by emailing firstname.lastname@example.org.
Are you seeing business and events travel costs rise? What kind of strategic changes are you making to meet your budgetary and cost-control goals? Please share here.