April 15--Spending on U.S. business travel will grow 3.1 percent this year, even as transportation costs moderate because of falling oil prices, according to a quarterly outlook report released Tuesday by the Global Business Travel Association.
Overall U.S. business travel spending is expected to hit $295.7 billion in 2015.
The forecast portends a positive outlook for the U.S. economy, the association said.
"Thanks to a healthier domestic economy and a stronger U.S. dollar, companies are putting more travelers on the road not only because they can afford to, but because they continue to see a strong return on their business travel investment," said Michael W. McCormick, travel association executive director.
Travel prices should only rise 1.4 percent in 2015 in part due to lower fuel costs, leading to modest cost increases -- or even decreases -- for air travel, ground transportation and rental cars, according to the travel association report.
Overseas travel is likely to be volatile over the next seven quarters, due to the uncertain global economy, the report said.
"The global economy remains shaky ... and combined with plummeting oil prices and the rising dollar, has ratcheted up both financial market volatility and concerns over the sustainability of global growth," the report said.
Still, the forecast anticipates spending increases of 5 percent and 6.9 percent over the next two years in international outbound travel.
gkarp@tribpub.com
