USTA Projects Rise in Summer Travel with Business Travel Leading The Way

Expect a rise in summer travel, although not quite to pre-2008 levels, according to a forecast by the U.S. Travel Association (USTA).
 
Suzanne Cook, USTA senior vice president, said research forecasts an across-the-board rebound in overall travel demand. Business travel is predicted to be up by 2.5% over last year, as compared to the 2% predicted for leisure travel. Cook explained that companies appear to be beginning to send more employees back on the road, although they continue to carefully weigh when travel is necessary and makes financial sense.
 
On the other hand, she noted, videoconferencing and other alternatives to travel continue to gain ground, with 81% of members of the Association of Corporate Travel Executives seriously considering using videoconferencing, up from 21% in 2007. One factor is that the cost and quality of such options have improved dramatically in recent years.
Cook pointed to an American Express Business Travel Survey conducted in January that found 74% of respondents said they either use or plan to use audio conferencing as an alternative to travel; nearly 72% were using or planned to use Web-based on-line conferencing or videoconferencing as an option.
 
Cook also reported that many companies are also retaining new controls on business-travel spending put in place over the past few years. She again cited American Express Business Travel survey findings that 43% of travel buyers and managers operated in a mandated environment, while 38% had soft mandates. That means that they have either very strict or somewhat strict rules when it comes to leaving the office for a sales call, meeting or conference. Moreover, she added, many say these mandates are here to stay.

Cook also said that Amtrak continues to outperform other modes of transportation, reporting a 13.5% increase in ridership in March, and a 5.5% gain year-to-date. Additionally, she noted that high-speed rail transportation in the United States may finally be coming into sight; President Obama has promised to make high-speed rail a legacy of his administration, and has requested $8 billion in stimulus funds for rail projects.

Finally, in terms of the lodging sector, business travel seems to be leading the way here, too. Based on findings supplied by PKF Hospitality Research as well as Smith Travel Research, Cook projected higher-end hotels in major urban markets would benefit from increased demand from both individuals and groups. However, she said, the trend has been towards a much shorter booking window.