Business travel will maintain its upward trajectory in 2012, but a stagnant U.S. economy is driving increasing corporate uncertainty and leading to projections of slower U.S. business travel spending growth next year, according to the latest Business Travel Quarterly Outlook – United States from GBTA, sponsored by Visa.

2011 has been a year of resurgence, with business travel spend expected to grow 6.9% compared to 2010, hitting $250.2 billion.  However, troubles in the economy are fostering more of a wait-and-see approach among corporations heading into next year, leading to a forecast of 4.3% growth in business travel spend for 2012 (or $260.9 billion).

GBTA finds that the expected growth in spend for 2012 will be largely spurred by price increases in travel goods and services.  But although travel prices are projected to increase in 2012, pressure in the economy will mean that prices will grow more slowly than in 2011.  GBTA predicts U.S. business travel price inflation to be 2.4% in 2012, compared to price inflation of 4.3% for 2011.

Despite challenges at home, many markets abroad, particularly in Asia, continue to grow at a much faster pace. U.S. companies operating globally are enjoying export booms and gains in their overall competitiveness. GBTA is projecting that corporations are expected to book 3.3% more trips abroad in 2012 and increase their international travel spend 7.7% to $34.3 billion.  This follows 2011 growth of 9.1% in international travel spend as currently forecast.

While spend on group travel such as meetings and conventions bounced back in 2010 and 2011, the uncertainty in the economy will likely lead to a spending slowdown for meetings travel next year. GBTA projects groups and meetings travel spend to grow at 3.5% in 2012, about half as fast as the expected 6.8% growth in 2011.

Source: GBTA