Citing the effect of "plummeting oil prices," the
Global Business Travel Association on Tuesday reduced its forecast for 2015 U.S.
business travel spending to $295.7 billion from its previous forecast of $310.2
billion, issued in January.
The new 2015 projection still represents a 3.1 percent
increase from 2014 spending levels, and GBTA also projects a 1.7 percent
year-over-year rise in person-trips to 492.1 million in 2015.
"Plummeting oil prices are putting downward pressure on
travel price inflation, particularly in the transportation segments,"
according to GBTA. "Although business travelers have yet to see the
benefits of lower fares as a result of lower oil prices, we expect the cost of
air travel, ground transportation and rental cars will all moderate in 2015. In
aggregate, travel prices should only rise 1.4 percent this year before
returning to more normal levels in 2016."
While GBTA forecast a 5 percent year-over-year
increase in 2015 international U.S. outbound person-trips and another 6.9
percent increase in 2016, the association cautioned, "We expect volatility
in international outbound travel over the next seven quarters as uncertainty in
the global economy clouds the forecast."