Deloitte says business travel up for 2011, 80% to hit the road more

Business travelers are back in 2011. At least, that’s what global professional services firm Deloitte is saying. After two years of corporate austerity, the business traveler is taking to the skies and road again, and this has to be great news for airlines and hotels, as it’s the corporate set that really brings in the cash they count on. The numbers look good for next year, according to this survey, which means a little more elbow room for the beleaguered tourism and travel industry.

The company surveyed 1,001 business travelers and found that 80 percent are expecting to take more trips than they did in 2010, with 79 percent forecasting that spending will be the same or higher. This follows gains in 2010, in which only 29 percent said they expected the full year to net out to a decline relative to 2009.

According to Adam Weissenberg, vice chairman and tourism, hospitality and leisure sector leader, Deloitte LLP, “The travel industry was not immune to the economic slowdown, but the confidence demonstrated by business travelers who responded to our survey suggests a brighter outlook for the industry as a whole.”
This follows a tough period for business travel. Deloitte noted in a statement:

Due to the recession, 72 percent of survey respondents had monitored their business travel expenses in various ways this past year. In particular, business travelers said they had cut back on overall travel costs (37 percent), reduced the duration of their trips (33 percent), or spent less on food/restaurants (32 percent). More than one in five (21 percent) booked less expensive hotel rooms.

Not only were belts tightening, but people were watching. Deloitte found that 59 percent of respondents indicated their companies were enforcing corporate travel policies more strictly. Fifty percent revealed that they have to get pre-trip approval for business travel, with 42 percent saying that “their company guidelines currently covered booking accommodations in advance.” Close to a third reported dollar limits on accommodations.

New York, Miami and Los Angeles dominant U.S. ports of entry

How do people get to the United States? Well, most of them seem to come in through the same places, according to the latest data from the U.S. Department of Commerce. The top 15 ports of entry handled 83 percent of all arrivals in July 2010. This is a 2 percentage-point drop from July 2009, but it’s still a substantial concentration.

Three spots were responsible for 38 percent of all incoming visitors from outside the United States: New York JFK Airport, Miami and Los Angeles. This is off a percentage point from July 2009. Meanwhile, 13 of the top 15 ports of entry in the United States sustained traffic growth from July 2009 to July 2010, seven of them in double digits.

[photo by ToreLo via Flickr]

Five signs people are traveling to the U.S. from overseas, recovery in progress

Travel to the United States from overseas is up drastically from last year. For the first seven months of 2010, according to the U.S. Department of Commerce, foreign visitation is up 12 percent relative to the same period in 2009. In July alone, 6.3 million people came to the country, a whopping 15 percent gain from July 2009, making it the tenth month in a row in which arrivals increased.

And, finally, these folks are spending more.

From January through July, foreign visitors dropped $76.7 billion into the U.S. economy, a 10 percent jump from last year. They spent $11.6 billion in July 2010, a surge of 18 percent and an indication of a pleasant financial trajectory. Spending by overseas visitors to the United States has grown year-over-year every month in 2010.

So, what do the details look like? There’s a lot of good news, the U.S. Department of Commerce reveals. Here are five stats that are sure to delight the U.S. tourism and travel industry:
1. Seventeen of the top 20 countries for U.S. visitation registered increases in people traveling here for the first seven months of the year – the only declines were from the United Kingdom, Venezuela and Ireland.

2. Twelve of these countries experienced double-digit increases, including Canada, Mexico, Brazil, China and Australia.

3. In July this year, 19 of the top 20 countries posted year-over-year gains, with Venezuela the lone holdout (down a modest 1 percent).

4. Double-digit gains came in July for 15 of the top 20 countries.

5. Arrivals from overseas locations (i.e., not Canada or Mexico) increased 15 percent from July to July and 12 percent from the first seven months of 2009 to the first seven months of 2010.

And, Canada has been busy. Air arrivals from our northern neighbor shot up 20 percent in July 2010, with land arrivals up 16 percent. For the year, air is up 15 percent, and land is up 12 percent. Mexico posted double-digit growth for both forms of arrival for both the month of July and the first seven months of 2010.

Of course, you don’t learn much by comparing 2009 to 2010, because 2009 was such a disaster. The effects of the financial crisis lingered, squeezing wallets shut and keeping people at home. So, you have to look back to 2008 to see if we’ve made any real progress.

Well, the news is positive. Visits from overseas increased 1 percent from the first seven months of 2009 to the first seven months of 2010. From July 2009 to July 2010, we experienced a 7 percent increase.

People are getting on planes again, and they’re visiting us. The travel market is coming back, but we’re still early in the process.

[photo by pheezy via Flickr]

Business travel picks up again – but not for the reasons you think

Did you see more suits at the gate this year? You probably didn’t, but that doesn’t mean businesses aren’t spending more on travel.

The latest data from the National Business Travel Association, in a survey of 170 corporate travel managers in North America, indicates that corporate travel budgets climbed 5.5 percent in 2010, and they’re set to gain another 4.5 percent next year.

But, it’s not for the reasons you think.

Sure, there are a few more people in seats, according to Craig Banikowski, the NBTA’s chief executive. He says that “companies are already getting their teams back on the road to help build business.” But, the underlying driver of the increase in business travel spending is that airlines and hotels are discounting less and kicking their prices higher.

Nonetheless, the NBTA report is optimistic. It finds that 72 percent of corporate travel managers believe that the business travel industry has improved over the past year. And, 63 percent believe it will continue to do so over the coming year.

Notes Banikowski, “As the economy continues to improve and both domestic and international costs rise, we will see airlines and hotels wield more negotiation power.” He adds, “Many travel buyers are already experiencing more strict market thresholds and expect this to result in smaller corporate discounts going forward.”

[photo by Mobile Edge Laptop Cases via Flickr]

Travel recovery watch: International travel and spending up says Department of Commerce

Last May, 3.6 million non-stop air passengers left the United States, according to the U.S. Department of Commerce. Who cares? Well, the travel industry does, as this indicates an 8 percent year-over-year increase and the fifth month to show a gain since December 2009. The top outbound markets were Europe, the Caribbean, Asia and Mexico. Air travel was up for the Caribbean, Asia and Mexico, with Europe posting a decline of 1 percent year-over-year for the month of May. Departures to Mexico, the Middle East and Oceania showed the strongest growth: 68 percent, 19 percent and 12 percent, respectively.

For the first five months of this year, outbound air traffic ticked 3 percent higher compared to the same period in 2009, hitting 15.1 million. And, positive growth occurred in five of the eight overseas regions, the U.S. Department of Commerce reports.

While the growth story is solid, don’t forget that were measuring against a severely depressed baseline. Travel and tourism spending was in the tank last year, following the global financial crisis triggered in September 2008. Though the numbers are headed in the right direction, the road to a full recovery remains long.

What is interesting is that more Americans are traveling, and they’re spending more while doing so, showing that the travel market recovery may have some legs. U.S. travelers spent $2.4 billion on foreign air carriers in May 2010, a year-over-year surge of 19 percent.

[photo by uggboy via Flickr]