Group foresees increase in U.S. business travel this year
Business travel is looking good this year.
The Global Business Travel Association upgraded its 2013 business travel predictions this month to accommodate for an improving economic outlook, which is expected to boost business travel spending this year.
Overall business travel is expected to rise 5.1 percent in 2013, up from the 4.6 percent growth that the association predicted last quarter and up from 1.8 percent overall growth in 2012. The forecast upgrade was driven partly by stronger growth in group spending, which is now expected to increase 6 percent to $115.9 billion, up from the 5.2 percent growth forecast in the fourth quarter.
Stronger corporate profits, increasing job development and improvements in key export markets are fueling business travel spending after a sluggish fourth quarter that was dampened by political uncertainty because of the fiscal cliff debate, the association said.
The group’s outlook for trip volume, though, dipped 1.1 percent from last quarter to 431.7 million trips.
“As corporate and consumer spending confidence rises, the business travel forecast in the United States is starting to brighten,” said Tad Fordyce, head of global commercial solutions at Visa Inc. “While the report shows the trip volume among business travelers will remain steady, we remain optimistic that stronger spending will help 2013 business travel exceed its prerecession high.”
In 2012, 16 percent of the 39.7 million Las Vegas visitors came to the city for business. That market share has remained essentially unchanged since 2009, when 17 percent of visitors came for business. In 2008, the market share was slightly higher at 21 percent, data from the Las Vegas Convention and Visitors Authority show.
Contact reporter Laura Carroll at
lcarroll@reviewjournal.com or 702-380-4588.
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