GBTA Confirms that Business Travel is on the Rise
The Global Business Travel Association (formerly the NBTA) recently released new data which confirms that group travel is rebounding and expected to advance this year, meaning more meetings and conventions on the books in the new year.
This research comes from the latest Business Travel Quarterly Outlook and offers a snapshot of the business travel industry both for fourth quarter 2010 and onward with projections into 2011. This data is compelling as business travel is a key indicator for overall economic health and also a factor in airline, hotel and car rental company performance. Specifically the Business Travel Quarterly Outlook reveals:
• Growth of business travel spending in 2010 is estimated at 2.3 percent overall—in sharp contrast to the 14.1 percent drop in spending experienced in 2009. Spend should advance by five percent in 2011.
• 2011 should also be a year of solid recovery for group travel, with a project growth rate of 5.5 percent for trips and 3.2 percent for spending.
• Outbound U.S. international business travel spending is estimated to grow by 16.9 percent versus the 32.1 percent decline it saw in 2009.
Michael W. McCormick, GBTA Executive Director and COO said, “Our research is ringing in the new year with reason for cautious optimism. Based on the way 2010 began, the year wrapped up better than expected thanks to a number of factors including higher than expected GDP, stronger exports and very strong corporate profits. These trends are translating into greater business travel spending as companies invest in travel to drive revenues and compete aggressively in a recovering economic environment.
“International outbound travel in particular remains strong and should continue to grow through 2012 as American companies seek opportunity in robust export markets,” he continued. “2011 should also see a welcome recovery in the group travel market after a number of very difficult years. Companies are once again recognizing the value of face-to-face meetings with customers, prospects, partners and colleagues to build relationships and set the stage for top-line growth.”