Here’s Why Business Travel Is Expected To Rise By 2018
With a rising of less-than-expected 3.5 percent to $1.26 trillion in 2016, the outlook for Business Travel Spending improves somewhat this year and more moving into 2018.
Though expectations pend many global uncertainties, the renewed optimism for business travel is being driven by current successes in global trade, expected improvements in manufacturing, economic improvements in emerging markets and shifting currency dynamics. Although a recent report by the Global Business Travel Association (GBTA) executive director and chief operating officer Michael McCormick stays cautious in saying, “Many downside risks remain, however. Most notably, public policy in the U.S and abroad has the potential to drastically change the global business travel environment.”
Unknowns such as President Trump’s intentions to lower corporate taxes, reduce regulations and invest in infrastructure are still at bay but could turn out to be good for business travel. While restrictions on trade policy and travel bans could be detrimental.
“Policies that would have an incredibly negative impact on business travel activity include any policies aimed at reducing the free movement of goods, services or people,” GBTA said.
The 2018 Global Travel Forecast indicates that airfares worldwide are expected to be up 3.5 percent, while hotel room prices will increase 3.7 percent.
Higher pricing has always been a reflection of a strong economy and growing demand. The 2018 Global Travel Forecast numbers are a strong indicator of where we see global business spending in the near future.