The Global Business Travel Association now predicts total U.S. business travel spending in 2014 will grow 6.8 percent year over year to $292.3 billion, down slightly from its previous projection of $293.3 billion.
Specifically, GBTA now expects the total number of domestic U.S. business trips in 2014 to reach 468.8 million, an increase from the previously projected 448.7 million, resulting in 4.7 percent year-over-year gain. The forecast for total domestic U.S. spending remained consistent at $241 billion, indicating spending per trip will be lower than first estimated, according to GBTA. Meanwhile, U.S.-outbound business travel spending is now projected to increase 10.3 percent, compared with a 12.9 percent increase the organization forecast in April.
Total individual transient trips now are predicted to grow 2.3 percent in 2014, with spending for such trips expected to increase 5.6 percent. The GBTA report also estimated that group trips this year will increase 2.2 percent, with associated spending rising 7.1 percent.
The association expects travel prices to increase modestly through 2014, rising 1.9 percent, before growing more quickly in 2015. GBTA attributed the low 2014 estimate to stable airfares, but noted that consolidation "puts more pricing power in the hands of the airlines." It also suggested that rising food prices, rental car and hotel rates are the largest contributors to overall travel price growth.
GBTA's newest report also estimated that U.S.-originated business travel in the first quarter of this year grew nearly 3 percent year over year, and the amount of money business travelers spent increased 7.6 percent to $71.2 billion.