Business Travel Spending Expected to Increase 7.2 Percent in 2014

Business Travel Panama
Flickr/thinkpanama

Based on “an improving economy, steady profits and hikes in business investment,” the Global Business Travel Association is predicting business-travel spending will increase 7.2 percent to $288.8 billion in 2014, according to NBC News.

The number of business trips declined this year, but it is expected to increase by 1.6 percent next year. Hmm, 1.6 percent growth in volume but a 7.2 percent growth in revenue…The report projects North American airfares will “decline in 2014 as a result of heightened competition from low-cost carriers, challenging unemployment levels and corporate travel policies becoming more stringent in regard to business-class travel.” But it allows that “pending consolidation among major U.S. airlines may offset these expected declines.”

Hotel prices, however, are projected to increase.