Post by Tricia Wischmann
I was wondering if corporate travel spending has rebounded since 2008? There seems to be mixed signals from our perspective - with many overall travel budgets lower or flat from those years, and so I wanted to do some research.
According to a study by the US Travel Association, business travel spending fell by 10% in 2009, however, rebounded and gained approximately 8% in 2012. According to the survey, the number of trips taken increased by three percent in 2010 and spending increased by six percent. Employment in the travel industry has remained below the 2007 peak and investment remains low. These numbers would suggest that we are back to levels of five years ago, but spending that is twice as much as the number of trips taken may stall things again
It is obvious travel spending has increased over the last few years, but the big question is will it continue? GBTA released a quarterly report that predicts U.S. spending will rise 6.6 percent in 2014 after stronger than expected growth in 2013.
Business travel is something that means a lot to us in the industry - but it also is a sign of growing businesses in general, and economies that are doing well. If travel slows or remains flat, it may be a good economic indicator of the challenges we face ahead of us. Let’s hope the predictions for 2014 are positive and this year will be even better than last.