U.S. Business Travel Spending Projected to Top $310 Billion in 2015
GBTA Forecasts Favorable National Outlook, Despite Weakened Global Economic State
Alexandria, VA (January 13, 2015) – U.S. business travel ended 2014 on a high note, with record spending expected to reach $292.2 billion. The projection for 2015 also remains strong, as lower oil prices are expected to lead to increased consumer spending, boosting economic projects. This strong domestic economic news comes despite an overall weak global economic outlook, with trouble in Europe, Asia and Russia.
Overall, U.S. business travel spending is expected to advance 6.2 percent to $310.2 billion in 2015, while total person-trip volume is expected to increase 1.7 percent to 490.4 million trips for the year, according to the GBTA BTI™ Outlook – United States 2014 Q4, a report from the GBTA Foundation, the education and research arm of the Global Business Travel Association (GBTA), and sponsored by Visa, Inc.
“2014 was a stabilizing year for U.S. business travel, with continuous, sustained growth, despite a plethora of external issues internationally that have weighted down economies in Europe, Russia and Asia,” said Michael W. McCormick, GBTA executive director and COO. “This is a significant and encouraging sign of confidence in the strength of the U.S. economy.”
The report’s key findings include:
– An estimated 482.4 million trips were taken in 2014, representing a 1.4 percent growth over 2013 and higher expectations than the previous quarter, driven by accelerating performance during the second half of the year.
– During Q3, an estimated 121 million trips were taken, spending $73.8 billion. This represents a 1.6 percent increase in volume and 6.5 percent increase in spending.
– 2014 proved to be a comeback year for international outbound business travel, growing 6 percent in volume year-over-year, after falling 1.0 percent in 2012 and rising only 1.1 percent in 2013. This gain in volume amounts to an estimated $35.6 billion for 2014, a growth of 8.9 percent year-over-year.
– Transient volume performed well in 2014, with an estimated 298.6 million trips taken, representing growth of 3.5 percent year-over-year. Volume will likely fall off pace slightly in 2015, although spending should continue, increasing from $130.4 billion projected in 2014 to an estimated $137.1 billion in 2015.
– Group trip volume will likely finish down 2.2 percent year-over-year, stabilizing after extraordinary growth in 2013. Group spend-per-trip, however, is on pace to rise to $715 in 2014, up from $660 in 2013. Both volume and spending are expected to rise in 2015 by 1.5 percent and 6.7 percent, respectively.
“With US business travel spending forecast to hit record levels in 2015, corporate travel managers have more need to improve business travel expense reporting and tracking,” said Tad Fordyce, SVP, global commercial solutions, Visa Inc. “Visa helps corporate clients manage and improve business travel reconciliation through reporting and automated solutions.”
Despite Weak Global Climate, U.S. Prevails
Global economic growth remains in a weakened state. Europe – especially Russia – is barely treading water, China’s growth is moderating, Japan’s challenges continue and emerging markets are awaiting more robust performance from the developed world. Despite this, the U.S. economy remains healthy with international outbound business travel seeing little to no negative impact.
Plummeting Oil Prices Temper Travel Price Inflation
Oil prices have plunged since June, creating favorable conditions. The effect is particularly impactful on airfares – signified by an expected decline of 0.9 percent in prices next year, down from an expectation of a four percent increase in last quarter’s report. Additionally, consumer spending is expected to increase by 2.6 percent, as lower gas prices often lead to a boost in discretionary income.
GBTA BTI™ Progresses Upward
The GBTA BTI™, a proprietary index of business travel activity, is estimated to reach 137 to round out 2014, bolstered by a strengthening domestic economy and an increase in spending. This represents a six-point year-over-year gain.
The BTI is expected to continue rising in 2015, reaching 146 by the end of next year. Momentum should continue into 2016 as the index gains another seven points on its way to 153.
“The BTI forecast continues to be a strong indicator of the state of business travel, adept at predicting trouble spots and growth signals,” explained Joseph Bates, GBTA Foundation Vice President of Research. “Based on what we’re seeing, business travel will continuing growing as our road warriors take to the skies and streets in 2015 and beyond.”
El informe GBTA BTI™ Outlook – Estados Unidos está disponible exclusivamente para los miembros de GBTA haciendo clic aquí y los no miembros pueden comprar el informe a través de la Fundación GBTA enviando un correo electrónico a [email protected] Para ver un resumen de esta investigación, haga clic aquí.
CONTACT: Colleen Lerro Gallagher, +1 703-236-1133, [email protected]
Gayle Kansagor, +1 202-295-8775, [email protected]
About the GBTA BTI™ Outlook – United States
The GBTA BTI™ Outlook – United States projects aggregate business travel trends over the next eight quarters. The report includes key buy-side metrics such as total business travel volume and spending, plus supply-side projections of changes in costs, across both transient and meetings travel. Releases are published on the second Tuesday of each quarter.
The GBTA BTI™ Outlook uses an econometric model created by Rockport Analytics to better inform the forecast process. The model explicitly relates measures of business trip volume and spending, sourced from D.K. Shifflet & Associates to key economic and market drivers of business travel including: U.S. Gross Domestic Product (GDP) and its components, U.S. Corporate Profits and Cash Flow, U.S. Employment & Unemployment, ISM Business Sentiment Index, Key Travel Components of CPI (airfare, lodging, food away from home, rental cars, fuel, transportation), among other components.
Acerca de la Fundación GBTA
La Fundación GBTA es la fundación de educación e investigación de la Asociación Global de Viajes de Negocios (GBTA), la principal organización comercial de viajes y reuniones de negocios del mundo con sede en el área de Washington, DC y operaciones en seis continentes. Colectivamente, los más de 7000 miembros de GBTA administran anualmente más de $345 mil millones de viajes de negocios globales y gastos de reuniones. GBTA proporciona a su creciente red de más de 28 000 profesionales de viajes y 125 000 contactos activos educación, eventos, investigación, defensa y medios de comunicación de primer nivel. La Fundación se estableció en 1997 para apoyar a los miembros de GBTA ya la industria en general. Como fundación líder en educación e investigación en la industria de viajes de negocios, la Fundación GBTA busca financiar iniciativas para promover la profesión de viajes de negocios. La Fundación GBTA es una organización sin fines de lucro 501(c)(3). Para obtener más información, consulte gbta.org y gbta.org/foundation.
Acerca de la Asociación Global de Viajes de Negocios
La Asociación Global de Viajes de Negocios (GBTA) es la principal organización comercial de viajes de negocios y reuniones del mundo con sede en el área de Washington, DC y operaciones en seis continentes. Los más de 9000 miembros de GBTA administran anualmente más de $345 mil millones de viajes de negocios globales y gastos de reuniones. GBTA y la Fundación GBTA brindan educación, eventos, investigación, defensa y medios de clase mundial a una red global en crecimiento de más de 28,000 profesionales de viajes y 125,000 contactos activos. Para aprender cómo los viajes de negocios impulsan el crecimiento empresarial duradero, gbta.org