Business Travel Spending to Rise in 2011?

The National Business Travel Association says business travel spending grew 2.3% in 2010, compared with a 14% drop in 2009 in this information release.  The National Business Travel Association’s research group also predicted that business travel spending will rise 5% this year in their Business Travel Quarterly Outlook for the U.S.

If their prediction is correct, the rise would be the second straight annual jump in business travel spending, following an estimated 2.3 percent increase to $227.9 billion in 2010.

Business travel growth in 2010 was fueled by “higher-than- expected GDP, stronger exports and very strong corporate profits,” Michael W. McCormick, NBTA’s executive director said. “International travel from the U.S. should remain strong through 2012 on robust export markets”.

Some economists look at business travel spend as one gauge of the strength of the economy.  So, the National Business Travel Association prediction that business travel will rise in 2011 is a good indicator for the economy.

It’s also a good sign for Airlines.  Business Travelers typically pay the highest ticket prices, so a raise in business travel will of course help airline’s bottom lines.

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