Slow business travel growth predicted in 2016
A NEW report by the Global Business Travel Association (GBTA) has projected that business travel will only continue to grow moderately in 2016 owing to global uncertainty.
The forecast for US-originated business travel expects growth to increase slightly in the first quarter of 2016, with a yearly 1.8 percent spike.
A number of unspecified international factors are said to be causing global insecurity and corporate caution among business travelers.
It is estimated that there will be over 500 million business trips this year. The report claims that the numbers don’t represent significant growth but will lay the foundation for a better business travel outlook in 2017.
There is cause for optimism in 2017 as the health of the global economy improves and the US presidential election wraps up.
Meanwhile, business travel costs are predicted to rise 1.9 percent in 2016 to US$295.7 billion while hotel markets continue to soar with average daily rates having risen an estimated 5.1 percent last year.