NBTA Report Forecasts '08 Travel Costs & Budget Plans
Business Travel Executive Redline News, 10/18/2007
The National Business Travel Association (NBTA) has unveiled its preliminary 2008 US Business Travel Overview & Cost Forecast report, with a projected increase in overall travel costs of between 6 percent and 8 percent. Key findings include:
• continued growth of business travel, though at a decelerating rate.
• increase in published airfares by up to 10 percent.
• increase in published hotel rates by up to 7 percent.
• increase in published car rental rates by 7 percent.
The forecast is based primarily on data from a survey of 215 buyer members. Compared to a year ago, fewer travel managers are projecting an increase of more than 10 percent in travel spend. More are projecting travel spend to remain flat. Overall, 73 percent of respondents expect travel spend to increase by between 5 percent and 10 percent.
Just under 8 percent (the same as a year ago) say they expect to reduce non-essential travel. But in the coming year, 16 percent say they expect to restrict the use of business class; 7 percent to do so in 2007.
Respondents also indicated that the three international destinations with the highest potential for growth in corporate travel spend in 2008 are China, the United Kingdom and India.