Business travel spending will continue to grow this year,
but growth will be tempered by economic headwinds, according to the Global
Business Travel Association's latest Business Travel Quarterly Outlook.
GBTA forecasted that business travel spend would increase
4.6 percent in 2012, with a 0.8 percent decline in person-trips.
"We'd like to see these record corporate profits
trickle down through the rest of the economy," Michael McCormick, GBTA
executive director and COO, said in a statement. "But as the European
economy teeters on the brink, corporations remain cautious. But because
business travel drives corporate growth, we should expect road warriors to
remain busy in 2012."
The results for the fourth quarter reveal that business
travel finished 2011 with stronger growth than expected. In 2012, GBTA expects
that business-travel growth will outpace anticipated GDP growth, despite
uncertainties in the economy.
In 2011, person-trip volume reached 446.5 million, a 2.1
percent increase. Business-travel spending was up 7.6 percent, reaching $251.9
billion.
GBTA predicts U.S. prices for business travel will be 2.2
percent higher in 2012, down from a 4.3 percent increase for 2011. Reduced
demand and lower fuel prices will be the leading causes of this
improvement.
The group predicted that international outbound business
travel will remain stronger than domestic travel, but will face challenges due
to European economic issues.
The number of U.S.-initiated international business trips is
expected to grow by 2.4 percent in 2012, down from 3.2 percent growth in 2011.
"For the last few quarters, international travel has
been a bright spot in business travel, due to the higher cost of travel and the
steady growth in the number of trips," McCormick said. "However, it
looks like the pressure building in growing economies will cause slower but
steady growth in 2012."
Group travel was very strong 2011, GBTA said, and is
projected to finish up 7.6 percent year over year.
However, group travel spending "will be hard-pressed to
repeat that performance" in 2012, GBTA said, and growth is expected to
fall back to 4.2 percent.
Source: Travel Weekly