The Global Business Travel Association now expects total U.S. business travel spending in 2014 to grow 7.1 percent year over year to $293.3 billion, an increase from its previous projection of $289.8 billion. GBTA attributed the forecast increase to strong investment in international U.S.-outbound business travel spending, now projected to increase 12.9 percent to $37.2 billion, compared to a 12.5 percent increase the organization issued in January.
After two years of decline, GBTA expects business trip volume this year to increase 2 percent year over year to 464.7 million trips, up from a 1.7 percent increase predicted in January—a higher than the 0.3 percent decline GBTA projects for 2013. Overall, U.S. group business travel now is expected to grow 7 percent to $126 billion, up from a previously projected 6.5 percent.
"Business travel growth is a leading indicator of job growth, and we've seen this play out in previous quarters as the private sector has finally regained all of the jobs lost during the recession," GBTA executive director and COO Michael McCormick said in a statement issued Tuesday. "Today's forecast suggests that this measured but steady improvement should continue."
GBTA reported that the conflict in Crimea has had little impact on the U.S. business travel market, but warned that trade ties between Europe and Russia are significant and an embargo could cause travel expenses to increase. "We're poised finally to start seeing stronger business travel spending in the eurozone, and any political uncertainty could hamper projected growth," according to McCormick.