HOTELMARKETING.COM

European economy to slow U.S. business travel growth

July 11, 2012 | Hotel Marketing

Economic uncertainty in Europe will dramatically slow the growth of business travel in the United States through the end of the year, according to the latest GBTA forecast, which anticipates an increase of 2.2 percent from previously 3.6 percent of year-over-year business travel spending growth for full-year 2012.

With the revised forecast, issued in its quarterly business travel outlook, GBTA and report sponsor Visa joined a growing chorus of industry players, including Delta Air Lines, United Airlines and several airline analysts, that have predicted a slowdown in business travel growth for the remainder of the year.

GBTA now forecasts total business travel spending for the full year to reach $256.5 billion, nearly $4 billion less than its previous projection, but still up from the $251 billion GBTA reported for 2011.

GBTA attributed the projected increase in 2012 spending to sustained strength in supplier pricing, as the association expects the number of U.S. domestic transient business trips this year to decline nearly 2 percent from 2011 levels. U.S. domestic group business trips are expected to decrease by 1.5 percent, while U.S. international outbound trips are on pace to grow by a modest 0.4 percent, according to GBTA's outlook.

Get the full story at Business Travel News

Visit our sponsors: