GBTA Foundation Research Reveals Impact of Business Travel on U.S. Economy and Jobs

GBTA Foundation Research Reveals Impact of Business Travel on U.S. Economy and
                                     Jobs

Business Travel Spending Within the U.S. Totaled $384 Billion USD in 2012

Business Travel Contributed $491 Billion to U.S. GDP in 2012

PR Newswire

ALEXANDRIA, Va., March 26, 2014

ALEXANDRIA, Va., March 26, 2014 /PRNewswire-USNewswire/ -- A new report issued
today by the Global Business Travel Association (GBTA) Foundation – the voice
of the global business travel industry – highlights the positive economic
impact that road warriors have on the nation's economy and explores the
quantitative impact business travel has on the U.S. economy. According to the
study, business travel was responsible for about 3 percent of U.S. GDP in 2012
($491 billion), and for every 1 percent increase in business travel spending,
the U.S. economy gains an additional 71,000 jobs, nearly $5 billion in GDP, $3
billion in wages and $1.2 billion in tax collections.

GBTA reveals the positive impact the business travel industry has on the U.S.
economy.

The impact study also found that in 2012 the nation's businesses spent $384
billion to send travelers out on the road on 452 million business trips. The
study shows that the business travel industry supports 7.1 million jobs and
generated $118 billion in federal, state and local taxes.

"While the road warriors' focus is on closing deals, it comes as no surprise
the huge impact the business travel industry has on the nation's economy,"
said Michael W. McCormick, executive director and COO, GBTA. "This study shows
business travelers are spending hundreds of billions on hotels, airports and
restaurants. And, if governments enacted pro-business traveler policies,
companies would be incentivized towards optimal travel expenditures levels.
This would add another $13 billion in travel spending and yield $915 billion
in new sales and nearly $250 billion in additional gross profit."

"Business travel matters," said Mike Fegley, vice president, America sales for
Intercontinental Hotels Group, the corporate sponsor of this study. "Business
travel is a driver of the economy and these numbers solidify its importance.
The study shows we can really move the needle of the economy by getting out on
the road for face to face meetings conducting business and generating jobs."

"Business travel is an important aspect of travel and tourism," said Rep. Gus
Bilirakis (R-FL). "As the Global Business Travel Association's study notes,
nearly $500 billion was contributed to the U.S. economy by business travel
alone in 2012. That same year, Florida's tourism industry supported over one
million employees and contributed over $51 billion to Florida's economy.
Business travel and the tourism industries are a crux of economic vitality
across the country, and especially in states like Florida. The bottom line is
that both international travel to the United States and domestic travel within
our nation create jobs. As Co-Chair of the Congressional Travel and Tourism
Caucus, I will continue to work to foster an economic climate that promotes
travel and economic vitality."

"Electronic communication is important to our economy but it cannot completely
replace the personal connection formed by meeting face to face," said Rep. Sam
Farr, D-Calif. and co-chair of the Congressional Travel and Tourism Caucus.
"Business travelers play an important role in building our economy beyond just
the deals they strike with a hand shake. Their time on the road supports the
entire travel industry; injecting needed dollars into local businesses and
creating jobs in every community across the United States."

More study highlights include:

  oIn 2012, U.S. domestic business travelers spent an average of $540 per
    trip, including $147 on lodging, $230 on transportation, $100 on food and
    beverage, $28 on shopping and $22 on entertainment. These averages
    consider all trips – day and overnight – and all methods of transportation
    – air, rail, personal auto and rental car. Business trips that utilized
    air travel as the primary mode of transportation averaged $1,100 in total
    spending per trip.
  oBusiness travel in the U.S. contributed $491 billion to U.S. GDP in 2012.
    Essentially, every dollar of business travel spending generated about
    $1.28 in GDP. Of the $491 billion total, $208 billion accrued directly to
    businesses that served travelers or meeting attendees. The supply chain
    for these businesses received an additional indirect contribution of
    $120.5 billion. Finally, the downstream spending of business-travel
    supported wages generated an induced contribution of $162.8 billion.
  oThe average business trip lasts 1.75 days and covers 268 miles (945 miles
    if primary transportation is by air). The typical U.S. business traveler
    takes about four daytrips and two overnight trips per month. Over the
    course of a year, a road warrior on average spends 19 nights in a hotel.
  oU.S. business travelers are most likely to be mid-career (age 35-55) and
    be employed in a managerial or professional position. Business travelers
    have an average annual household income of $102,329 and almost
    three-quarters of business travelers are married.

Methodology

The economic impacts described in this study were estimated by Rockport
Analytics and are based on domestic traveler spending as reported by D.K.
Shifflet & Associates, international spending reported by the National Travel
& Tourism Office, and meeting spending derived from a Convention Industry
Council study. The most recent full year data (2012) for all inputs was
analyzed and compared to other economic data for the same period. This data is
fully consistent with the travel spending estimates released each quarter in
the GBTA BTI™ Outlook – United States. The study, The United States Business
Travel Industry: Road Warriors Impact on Jobs and the Economy, is available
exclusively to GBTA members by clicking here and non-members may purchase the
report through the GBTA Foundation by emailing pyachnes@gbtafoundation.org.

About the GBTA Foundation:
The GBTA Foundation is the education and research foundation of the Global
Business Travel Association (GBTA), the world's premier business travel and
corporate meetings organization.Collectively, GBTA's 6,000-plus members
manage over $340 billion of global business travel and meetings expenditures
annually. GBTA provides its network of 21,000 business and government travel
and meetings managers, as well as travel service providers, with networking
events, news, education & professional development, research, and advocacy.
The foundation was established in 1997 to support GBTA's members and the
industry as a whole. As the leading education and research foundation in the
business travel industry, the GBTA Foundation seeks to fund initiatives to
advance the business travel profession. The GBTA Foundation is a 501(c)(3)
nonprofit organization. For more information, see gbta.org and
gbta.org/foundation.

About Intercontinental Hotels Group:
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global
organization with a broad portfolio of nine hotel brands, including
InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels &
Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge
Suites®, Candlewood Suites®, EVEN™ Hotels and HUALUXE™ Hotels & Resorts.

IHG manages IHG® Rewards Club, the world's first and largest hotel loyalty
program with over 77 million members worldwide. The program was relaunched in
July 2013, offering enhanced benefits for members including free internet
across all hotels, globally.

IHG franchises, leases, manages or owns over 4,700 hotels and 687,000 guest
rooms in nearly 100 countries and territories. With more than 1,100 hotels in
its development pipeline, IHG expects to recruit around 90,000 people into
additional roles across its estate over the next few years.

InterContinental Hotels Group PLC is the Group's holding company and is
incorporated in Great Britain and registered in England and Wales.

The Global Business Travel Association

Photo - http://photos.prnewswire.com/prnh/20140326/DC90736-INFO 

Logo- http://photos.prnewswire.com/prnh/20110609/DC16833LOGO

SOURCE Global Business Travel Association

Website: http://www.gbta.org
Contact: Colleen Lerro, 703-236-1133, clerro@gbta.org, Kellie Gleason,
212-446-1869, kgleason@sloanepr.com
 
Press spacebar to pause and continue. Press esc to stop.