Business Travel Hits Highest

Business travel spending and volume grew at stronger-than-expected rates in Q4 2010 and the GBTA Business Travel Index™ reached its highest level since the recession began in 2008, offering positive signs for the performance of the U.S. economy going forward. In fact, GBTA Foundation research shows that increasing business travel spending is a leading indicator of future job growth – meaning more good news may be ahead on the employment front.
The fourth quarter of 2010 showed the strongest seasonally-adjusted quarter-over-quarter business travel growth since the recession began. For the year, total U.S. spending on business travel grew by 3.2% -- up substantially from the 2.3% for the year forecast previously. Business travel spending in 2011 is now expected to be even stronger than estimated last quarter, advancing by 6.9% for the year – up from the 5% growth forecast previously.
“These are very heartening signs. Business travel spending is coming back at robust levels, indicating the shape of things to come – namely more travellers on the road, an improving economy, and a positive environment for continued job growth,” said Michael W. McCormick, GBTA Executive Director and COO. “Thanks to increasing corporate confidence, companies are investing more in business travel which will further stimulate business activity and economic growth.”
With economic improvement and more business travellers hitting the road, travel prices are also recovering from their sharp declines during the recession. Rate analysis based on an aggregate of airfare, lodging, meals, ground transportation and car rentals shows travel prices in 2010 increased by 2.5% and are projected to increase between 2% to 4% for 2011.
The findings were released today in the latest Business Travel Quarterly Outlook – United States from the Global Business Travel Association Foundation, the education and research arm of the Global Business Travel Association (GBTA), sponsored by Visa.