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2013 Q1	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
GBTA BTI™ Outlook – United States 	
Prospects for Domestic & International Outbound Business Travel 2013-2014
	
2012 Q2
2013 Q2
1515
	
GBTA BTI™ OUTLOOK – UNITED STATES e2013 Q2
	
©	June	2013	GBTA	and	its	affiliates.		All	rights	reserved.		Members	may	copy	this	publication	in	its	entirety	for	
internal	company	use.
Group Meeting & Convention vs. Transient Business Travel
Our	final	2012	revision	led	to	higher	totals	for	transient	business	travel	–	both	person‐trips	and	spending.		In	2012,	
there	were	a	total	of	282	million	person‐trips	taken	for	transient	business	travel.		A	total	of	$119	billion	USD	was	
spent	on	transient	travel	in	2012.		This	represents	annual	growth	of	3.2%	and	6.2%,	respectively.		This	fairly	
robust	level	of	growth	has	been	challenged	in	early	2013,	however,	as	the	expansion	in	corporate	profits	has	
slowed.			
We	expect	that	firms	will	continue	to	tighten	their	transient	business	travel	budgets	over	the	next	few	quarters.		
Our	outlook	for	2013	projects	a	‐0.4%	decline	in	Person‐Trip	volume	to	453	million	trips	and	3.8%	growth	in	
transient	spending	to	$273	billion	USD.		By	2014,	however,	we	expect	another	healthy	uptick	in	corporate	profits	
(and	other	economic	drivers)	and,	
consequently,	both	trips	and	
spending	will	experience	
substantial	growth.		In	2014,	we	
expect	total	transient	volume	to	
hit	130	million	person‐trips	and	
total	transient	spending	to	hit	
$284	billion	USD,	representing	
1.1%	and	5.2%	growth,	
respectively.	
Group	business	travel	metrics	
were	also	revised	upward	for	
2012.		Our	final	figures	for	2012	
show	that	group	volume	rose	
0.5%	to	166	million	person‐trips	
and	group	spending	rose	3.3%	to	
$111	billion	USD.		Growth	in	
spend‐per‐trip	among	group	travelers,	however,	slowed	as	firms	ratcheted	down	meeting	budgets.				
Group	business	travel	will	continue	to	face	headwinds	through	2013	as	trends	that	have	emerged	in	the	MICE	
industry,	such	as	lower	meeting	budgets	and	more	local	meetings,	will	persist.		Moreover,	government	meetings	
have	been	severely	cut	back	in	the	wake	of	sequestration	and	the	“IRS	effect”.		We	expect	total	group	volume	to	fall	
‐0.3%	in	2013	to	166	million	Person‐Trips.		Spending	among	group	travel	delegates	will	grow	5.3%	to	$117	billion	
USD	in	2013.		We	are	projecting	slightly	more	growth	in	group	meeting	activity	in	2014	when	volume	will	grow	
1.8%	and	spending	another	6.8%.	
International Outbound
Business Travel
The	quarterly	growth	in	international	
outbound	business	travel	volume	bounced	
back	slightly	in	2013	Q1	after	experiencing	
its	worst	drop	since	2009	Q4	the	previous	
quarter.	We	expect	continued	weakness	in	
the	global	economy	will	further	temper	IOB	
in	2013	–	volume	will	advance	0.9%	and	
spending	will	grow	3.0%.		We	expect	a	
significant	turning	point	in	international	
outbound	business	travel	in	2014	as	the	
global	economy	gets	back	on	its	feet	and
1414
	
GBTA BTI™ OUTLOOK – UNITED STATES e2013 Q2
	
©	June	2013	GBTA	and	its	affiliates.		All	rights	reserved.		Members	may	copy	this	publication	in	its	entirety	for	
internal	company	use.
 2013	Q1	GBTA	BTI™	came	in	at	123;	this	is	somewhat	higher	than	last	quarter’s	forecast	of	121	(GBTA	
BTI™	Outlook	–	United	States,	January	2013),	mainly	due	to	the	upward	revision	of	2012	data.	This	value	
represents	a	two‐point	gain	over	the	previous	quarter	and	a	three‐point	gain	over	2012	Q1.	
 The	GBTA	BTI™	has	performed	poorly	over	the	last	number	of	quarters,	growing	only	3	points	since	
2012	Q1.		Tepid	growth	both	domestically	and	abroad	has	continued	to	challenge	the	health	of	the	business	
travel	sector.	
 We	continue	to	believe	the	GBTA	BTI	will	experience	significantly	better	growth	over	the	next	seven	
quarters.		While	economic	headwinds	in	2013	will	weigh	on	both	domestic	and	international	business	travel,	
price	growth	will	help	boost	GBTA	BTI™	over	the	next	couple	quarters.		In	2014,	we	expect	real	spending	
growth	to	impact	the	GBTA	BTI™	as	travel	price	inflation	stabilizes	and	both	domestic	and	international	trip	
volumes	increase.		
Business Travel Quarterly Outlook Details
Total U.S.-Originated Business Travel Spending & Trip Volumes3
The	levels	of	our	2013	Q2	Outlook	are	significantly	higher	than	our	expectations	from	last	quarter’s	Outlook	
(Business	Travel	Quarterly	Outlook	–	United	States,	April	2013),	almost	entirely	due	to	the	revision	in	our	primary	
data	source	for	domestic	travel	(volume	and	spend).		Total	business	travel	volume	in	2012	was	revised	from	437	
million	annual	person‐trips	to	454	million	annual	person‐trips,	nearly	a	4%	increase.		Total	spending	on	business	
travel	in	2012	was	revised	from	$256	billion	USD	to	$262	billion	USD,	up	over	2%.		This	represents	a	growth	
revision	to	2.2%	in	trip	volume	in	2012	(up	from	‐1.8%	decline	reported	in	last	quarter’s	forecast)	and	4.4%	in	
business	travel	spending	(up	from	1.8%	growth	reported	in	last	quarter’s	forecast).	
It	should	be	noted,	however,	that	these	adjustments	have	done	very	little	to	alter	the	growth	pattern	in	our	
forecasts	for	person‐trip	volume	or	spending.		We	expect	total	person‐trip	volume	to	fall	slightly	to	453	million	
trips	(‐0.4%)	in	2013	before	rising	1.5%	to	459	million	trips	in	2014.		This	compares	with	‐1.1%	and	1.8%	growth	
for	2013	and	2014,	respectively,	projected	last	quarter.		Total	spending	on	U.S.‐initiated	business	travel	is	expected	
to	rise	4.3%	in	2013	and	another	6.9%	in	2014.	
																																																								
3	Includes	all	U.S.	domestic	business	travel	plus	outbound	international	trips

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GBTA BTI™ Outlook – United States: 2013 Q2 (Select Pages)

  • 1. 2013 Q1 GBTA BTI™ Outlook – United States Prospects for Domestic & International Outbound Business Travel 2013-2014 2012 Q2 2013 Q2
  • 2. 1515 GBTA BTI™ OUTLOOK – UNITED STATES e2013 Q2 © June 2013 GBTA and its affiliates. All rights reserved. Members may copy this publication in its entirety for internal company use. Group Meeting & Convention vs. Transient Business Travel Our final 2012 revision led to higher totals for transient business travel – both person‐trips and spending. In 2012, there were a total of 282 million person‐trips taken for transient business travel. A total of $119 billion USD was spent on transient travel in 2012. This represents annual growth of 3.2% and 6.2%, respectively. This fairly robust level of growth has been challenged in early 2013, however, as the expansion in corporate profits has slowed. We expect that firms will continue to tighten their transient business travel budgets over the next few quarters. Our outlook for 2013 projects a ‐0.4% decline in Person‐Trip volume to 453 million trips and 3.8% growth in transient spending to $273 billion USD. By 2014, however, we expect another healthy uptick in corporate profits (and other economic drivers) and, consequently, both trips and spending will experience substantial growth. In 2014, we expect total transient volume to hit 130 million person‐trips and total transient spending to hit $284 billion USD, representing 1.1% and 5.2% growth, respectively. Group business travel metrics were also revised upward for 2012. Our final figures for 2012 show that group volume rose 0.5% to 166 million person‐trips and group spending rose 3.3% to $111 billion USD. Growth in spend‐per‐trip among group travelers, however, slowed as firms ratcheted down meeting budgets. Group business travel will continue to face headwinds through 2013 as trends that have emerged in the MICE industry, such as lower meeting budgets and more local meetings, will persist. Moreover, government meetings have been severely cut back in the wake of sequestration and the “IRS effect”. We expect total group volume to fall ‐0.3% in 2013 to 166 million Person‐Trips. Spending among group travel delegates will grow 5.3% to $117 billion USD in 2013. We are projecting slightly more growth in group meeting activity in 2014 when volume will grow 1.8% and spending another 6.8%. International Outbound Business Travel The quarterly growth in international outbound business travel volume bounced back slightly in 2013 Q1 after experiencing its worst drop since 2009 Q4 the previous quarter. We expect continued weakness in the global economy will further temper IOB in 2013 – volume will advance 0.9% and spending will grow 3.0%. We expect a significant turning point in international outbound business travel in 2014 as the global economy gets back on its feet and
  • 3. 1414 GBTA BTI™ OUTLOOK – UNITED STATES e2013 Q2 © June 2013 GBTA and its affiliates. All rights reserved. Members may copy this publication in its entirety for internal company use.  2013 Q1 GBTA BTI™ came in at 123; this is somewhat higher than last quarter’s forecast of 121 (GBTA BTI™ Outlook – United States, January 2013), mainly due to the upward revision of 2012 data. This value represents a two‐point gain over the previous quarter and a three‐point gain over 2012 Q1.  The GBTA BTI™ has performed poorly over the last number of quarters, growing only 3 points since 2012 Q1. Tepid growth both domestically and abroad has continued to challenge the health of the business travel sector.  We continue to believe the GBTA BTI will experience significantly better growth over the next seven quarters. While economic headwinds in 2013 will weigh on both domestic and international business travel, price growth will help boost GBTA BTI™ over the next couple quarters. In 2014, we expect real spending growth to impact the GBTA BTI™ as travel price inflation stabilizes and both domestic and international trip volumes increase. Business Travel Quarterly Outlook Details Total U.S.-Originated Business Travel Spending & Trip Volumes3 The levels of our 2013 Q2 Outlook are significantly higher than our expectations from last quarter’s Outlook (Business Travel Quarterly Outlook – United States, April 2013), almost entirely due to the revision in our primary data source for domestic travel (volume and spend). Total business travel volume in 2012 was revised from 437 million annual person‐trips to 454 million annual person‐trips, nearly a 4% increase. Total spending on business travel in 2012 was revised from $256 billion USD to $262 billion USD, up over 2%. This represents a growth revision to 2.2% in trip volume in 2012 (up from ‐1.8% decline reported in last quarter’s forecast) and 4.4% in business travel spending (up from 1.8% growth reported in last quarter’s forecast). It should be noted, however, that these adjustments have done very little to alter the growth pattern in our forecasts for person‐trip volume or spending. We expect total person‐trip volume to fall slightly to 453 million trips (‐0.4%) in 2013 before rising 1.5% to 459 million trips in 2014. This compares with ‐1.1% and 1.8% growth for 2013 and 2014, respectively, projected last quarter. Total spending on U.S.‐initiated business travel is expected to rise 4.3% in 2013 and another 6.9% in 2014. 3 Includes all U.S. domestic business travel plus outbound international trips