Business travel spending totaled $62.2 billion in the second quarter, rising 6.3% from a year ago despite headwinds facing the economic recovery, according to the latest estimate from the Global Business Travel Association.
GBTA, a trade group for corporate travel managers, also estimates business travel spending will grow 6.9% for 2011.
The growth forecast is based on its expectation that the U.S. economic recovery will march on and resist a double-dip recession despite rising oil prices, slowing global growth and shaky consumer confidence. Growing demand will also allow hotels and airlines to boost pricing, it says.
"We've now hit a soft patch in the economic revival, but business travel spend levels tell us the recovery should continue," says Michael McCormick, GBTA's executive director. "Now is the time when companies will absolutely call upon their strategic travel programs to help offset rising costs and keep travelers doing business."
Business travelers can expect higher prices for the rest of the year compared to a year ago, but the rate of increase will be more moderate than earlier in the year, GBTA says. With higher airfares and hotel rates, business travel prices are expected to increase by 4.5% to 5% in 2011.
International travel spending is growing much more quickly than domestic spending, GBTA says. Total spending on trips abroad is estimated to hit $31.8 billion in 2011, a 9.1% increase over 2010.
The same market forces that are causing travel prices to rise for transient business travel will also push group travel spending to $107.2 billion for 2011, a 6.8% increase.
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