Business Travel Will Be Up, Meetings Down in '10

In the coming year, business people will travel more, even if they attend fewer meetings and events. At the same time, U.S. air travel and car rental costs will remain flat, while hotel rates decline.

That's the conclusion of the Natl. Business Travel Assn.'s 2010 U.S. Business Travel Buyers' Core Forecast, released late last month.

According to the survey of 180 corporate travel buyers, 58 percent of respondents expected a reduction in meetings and events next year. Still, that is down from the 85 percent who thought the same thing about this year. Despite the majority who said they believed there will be a decline in the number of meetings and events held, 69 percent thought business travel volume will grow next year, and 56 percent predicted their companies' travel budgets will increase significantly.

Respondents said the cost of air travel decreased 24 percent since last year and will stabilize next year, while hotel rates decreased 10 percent this year and will drop anywhere from 2 to 8 percent next year.

According to NBTA President and CEO Craig Banikowski, corporate travel managers quickly responded to changing business cycles as the economic recession took hold. Likewise, they will adjust their companies' travel plans as the business climate improves.

“As the economic recovery begins taking hold in 2010,” Banikowski said, “companies will take advantage of low travel costs to send employees on the road in greater volumes, thus fueling the recovery.”

He added he believes the increase in business travel expected next year will occur within the framework of a new corporate culture.

“In the 'new normal,' we see stronger travel mandates, greater use of pretrip approval and audits, tighter restrictions on premium class travel, more focus on travel ROI and enterprise-wide strategic meetings management,” Banikowski said.