Business and Group Travel Growth Forecast Adjusted Upward for 2014

April 8, 2014

Despite a record-breaking winter where the effects of the polar vortex and back-to-back snowstorms halted travel across much of the U.S., business travel is expected to continue its surge in 2014. The Global Business Travel Association (GBTA) significantly increased its forecast for the year, driven in large part by healthy corporate profits, rising management confidence and increased job development — a continued positive sign for the U.S. economy.

U.S. business travel spending is now expected to rise 7.1 percent in 2014 to $293.3 billion, a substantial upgrade from the 6.6 percent growth to $289.8 billion GBTA predicted last quarter. Total person-trip volume is expected to increase 2.0 percent to 464.7 million trips, according to the GBTA BTI Outlook — United States 2014 Q1.

GBTA’s forecast upgrade will be fueled by strong investment in international outbound travel spending, which is now expected to increase 12.9 percent to $37.2 billion — up from 12.5 percent growth forecasted in Q4.
GBTA’s outlook for group travel was also revised to increase 7 percent in 2014 to $126 billion — up from the 6.5 percent growth GBTA predicted last quarter.

“As the spring thaw gets into full swing, businesses are feeling more confident, with pent-up demand to get their employees back on the road,” said Michael W. McCormick, GBTA executive director and COO. “Business travel growth is a leading indicator of job growth, and we’ve seen this play out in previous quarters as the private sector has finally regained all of the jobs lost during the recession. Today’s forecast suggests that this measured but steady improvement should continue.”

The GBTA BTI Outlook — United States report is available exclusively to GBTA members. Non-members may purchase the report through the GBTA Foundation by emailing pyachnes@gbtafoundation.org.