Business travel spending is expected to increase by 5 percent in 2011, according to a quarterly outlook report issued by the NBTA Foundation, the research arm of the National Business Travel Association.
The report also forecasts a 5.5 percent increase in the volume of group business travel and a 3.2 percent increase in spending.
Overall growth of business travel in 2010 is estimated at 2.3 percent, a sharp contrast to the 14.1 percent drop the industry experienced in 2009.
“2011 should also see a welcome recovery in the group travel market after a number of very difficult years,” said Michael W. McCormick, NBTA Executive Director and COO. “Companies are once again recognizing the value of face to face meetings with customers, prospects, partners and colleagues to build relationships and set the stage for top-line growth.”
According to McCormick, there is reason for “cautious optimism” in regards to the overall business travel market.
“Based on the way 2010 began, the year wrapped up better than expected thanks to a number of factors including higher than expected GDP, stronger exports and very strong corporate profits,” he said. “These trends are translating into greater business travel spending as companies invest in travel to drive revenues and compete aggressively in a recovering economic environment.”
