TIA Predicts Stronger Travel Industry

Business trips by U.S. citizens this year will rise nearly 5 percent, the first increase since 1999, according to the Travel Industry Association of America annual travel forecast released this week. TIA said business travel will grow further in 2005, by 3.5 percent, to 150 million business trips.

"A healthier economy is providing ample stimulus for strong growth this year," said TIA president and CEO William Norman. "Setting the stage are moderate increases in consumer spending, higher levels of consumer confidence, increasing business investments and profits and modest travel price increases."

For 2004, TIA also predicted a 3.4 percent increase in leisure travel and a 2.2 percent increase in travel price inflation resulting from "higher hotel rates and gasoline prices." The association said international inbound arrivals will grow 5.3 percent, the first increase in three years but still below 2000 levels. Overall traveler spending by domestic and international visitors is predicted to grow 6 percent, to $585 billion.