Travel managers are facing 2004 with optimism, with nearly three out of four indicating that business travel will rebound significantly this year and into the next, according to a National Business Travel Association survey of 220 travel managers released today.
While 71 percent of respondents said they expect a rebound this year and into next, many in the industry have been reluctant to predict that volumes will reach 2000 levels
(BTN, Oct 20, 2003). Yet, 54 percent of travel managers polled gauge that volumes sometime this year will return to such heights. The survey also reflects the conventional wisdom among many in the industry that as the economy recovers, so will business travel.
"The economy and business travel are closely related, as one helps drive the other," said NBTA president Carol Devine. "While the challenges of the past few years have taught us to be cautious, economic trends and travel purchase indicators bode well for an increase in business travel--with the possibility of significant volume increases at the end of the year and into 2005."
"While the economy is slated to improve in 2004, corporate travel volumes and budgets look to remain largely flat for the upcoming year, with some minor increases and decreases in both the air and hotel sectors," according to the NBTA report. Just less than half of the travel managers surveyed reported increased budgets for this year, while 18 percent said budgets have decreased.
The study also highlights the emergence of a more cost-conscious travel buyer as the use of low-cost carriers and midprice hotels continues to rise. According to the survey, more than 60 percent of respondents will be using more midprice brands and low-cost carriers this year, compared with last.
"Travel departments have been adjusting to tougher economic conditions and security concerns during the past few years," Devine told
BTN last year. "As we move into 2004, NBTA predicts the beginning of a recovery in business travel. Yet, corporations will still be focused on the bottom line, and the cost-consciousness of the past two years will remain."