An improving economic outlook with business and consumer confidence at the rise is anticipated to raise business travel in 2013, leading the worldwide Business Travel Association to upgrade its forecast for the year. Stronger corporate profits, increasing job development and enhancements in key export markets are fueling business travel spending after a sluggish fourth quarter that was dampened by political uncertainty as a result of “fiscal cliff” debate.
According to the GBTA BTI™ Outlook – U.s.a. 2013 Q1, a report from the worldwide Business Travel Association sponsored by Visa, Inc., U.S. business travel is now expected to rise 5.1% in 2013 to $268.5 billion, that’s an upgrade from the 4.6% growth to $266.7 billion that GBTA predicted last quarter and a considerable increase from 1.8% growth in 2012.
GBTA’s forecast upgrade should be driven partly by stronger growth in group spending, that’s now expected to extend 6.0% to $115.9 billion – up from 5.2% growth forecast in Q4.
GBTA’s outlook for trip volume remains essentially the identical from last quarter – a slight decline of -1.1% to 431.7 million person-trips.
“Business confidence is up and the necessity to compete inside the global economy is driving companies to speculate in business travel,” said Michael W. McCormick , GBTA executive director and COO. “Despite continued political uncertainty within the U.S. and around the globe, businesses are starting to get away in their holding pattern and seek growth more aggressively. While there are still many factors that may hamper the economy again, from the impact of sequestration to rising energy prices, business travel spending is on target to date in 2013.”
“As corporate and consumer spending confidence rises, the business travel forecast within the Usa is commencing to brighten,” said Tad Fordyce , head of worldwide commercial solutions at Visa Inc. “While the report shows the trip volume among business travelers will remain steady, we remain optimistic that stronger spending might actually help 2013 business travel exceed its pre-recession high.”