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Association forecasts strong business travel spending

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Business travel spending and volume in the United States remained steady in the second quarter despite headwinds facing the economic recovery, according to the latest data from the Global Business Travel Association (GBTA).  

Businesses spent an estimated $62.2 billion on travel in the second quarter of 2011, an increase of 6.3 percent compared with the second quarter of 2010. The forecast for total business travel spending growth in 2011 also remains strong at 6.9 percent, according to the association’s Business Travel Quarterly.  

Continued business travel spending suggests the U.S. economic recovery will march on and resist a backslide or double-dip recession, despite setbacks this year that have included rising oil prices, natural disasters, slowing global growth and shaky consumer confidence. Travel costs are also on the rise, with growing demand providing suppliers with the ammunition needed to boost rates.

“By the end of 2010, it looked like the light at the end of the ‘recession tunnel’ was becoming brighter as the economy overall and business travel specifically were gathering positive momentum,” said Michael McCormick, GBTA’s executive director. “We’ve now hit a soft patch in the economic revival, but business travel spend levels tell us the recovery should continue as companies invest in driving future growth. Now is the time when companies will absolutely call upon their strategic travel programs to help offset rising costs and keep travelers doing business.”

The report found that in 2010 companies spent 1.4 percent more per trip than in 2009 when adjusted for price increases. So far in 2011, it is estimated that when adjusted for price increases, spending on business trips will remain relatively flat.

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