Research and White Papers
NBTA: Global Business Travel's 2009 Decline Largest Since Sept. 11
August 12, 2010
Business travel spend around the world fell 8.8 percent in 2009 — the industry's largest drop since 2001, when business travel fell 11.5 percent thanks to the events of Sept. 11 — the NBTA Foundation, the research arm of the National Business Travel Association, announced yesterday.
The finding, part of a study sponsored by Visa, confirms what everyone in the travel industry already knows: Last year was a difficult one. The study also confirms, however, what most in the industry have yet to discover: This year has been better than originally expected.
In fact, the economic recovery to date has "surpassed expectations," according to the NBTA Foundation, which projects that global business travel spend will reach $896 billion this year and grow to $1.2 trillion by 2014.
"Surprisingly and thankfully, while much of the world has just weathered a devastating recession, declines in business travel last year were not as detrimental as expected, positioning the industry to achieve a swifter recovery, which we are already seeing," said NBTA President and CEO Craig Banikowski. "Air traffic is rising, along with average fares. Hotel occupancy, particularly in higher tiers, is also on the increase. However, while we believe recovery is sustainable, corporate travel managers and suppliers should be prepared for a bumpy ride."
As part of their report, the NBTA Foundation and Visa analyzed business travel prospects by region, industry and category. The business travel recovery will be strongest and fastest, it found, in Asia, Latin America and the Middle East, and slowest in North America and Europe. By industry, meanwhile, the recovery will be strongest in utilities, food processing and services, real estate, rubber and plastic manufacturing, and social and personal services.
"Some industries, more than others, can realize from this report that an aggressive stance toward investing in business travel can grow top-line revenue," Banikowski continued.
NBTA and Visa's full study, "The NBTA Foundation Business Travel Market Metrics: A Global Analysis of Business Travel Activity," is available free of charge to NBTA members and select Visa customers. For more information, visit
www.nbta.org.