GBTA Adopts More Pessimistic Outlook for 2012 Travel Spending

Economic uncertainty in Europe caused the Global Business Travel Association to lower its 2012 projections for business travel spending in the United States by $4 billion. The Alexandria, Va.-based organization downgraded its forecast, predicting that businesses will spend $256.5 billion on travel this year, a 2.2% increase compared to 2011. Previously, it had predicted 3.6% growth. In explaining the revision, Chief Operating Executive Michael McCormick said the association had considered several possible scenarios based on the European debt crisis, but that it now appears that a prolonged European recession is likely. Low job growth in the United States also contributed to the amended numbers. The association anticipates that companies may cut travel budgets while waiting for the economic landscape to settle, but that declining demand will not reverse a trend of rising travel prices. businesstravelnews.com