Corporate Travel-Industry Statistics: World vs. US

One might think that after September 11, 2001, March 11, 2004, and July 7, 2005, most people would prefer to stay close to home, especially with regard to leisure and corporate travel. However, statistics gathered by (TIA) indicate otherwise. Even though these attacks have shown how vulnerable airlines and rail transit systems are to terrorist attacks, following these attacks, governments in Europe and the US have imposed stricter curbs on immigration and increased their scrutiny of immigrants and tourists.

The Travel Industry Association of America reveals that the cost of travel away from home within the US rose by 0.5 percent in June 2005, as compared to rates in May 2005, and showed a 3.7 percent rise as compared to June 2004 rates. The price of air tickets went up by 2.3 percent in June 2005 as compared to rates quoted a month earlier, and by 5.8 percent, when compared to rates quoted a year earlier. This price rise could indicate that more people are traveling away from home within the US itself.

Travel of internationals to the US has gone up within the first quarter of 2005, especially from the UK, Germany, Canada, Brazil, and Japan. The rise, shown in percentages, ranged from a rise of 2.7 percent for Japanese tourists as against a rise of 15.5 percent for Brazilian tourists.

TIA also states that domestic and international airlines saw a rise in their annual revenue, which ranged from 5.4 percent for domestic airlines to 11.9 percent for international airlines. Hotels and motels saw an annual rise of 8 percent in their revenues. However, the annual employment rate for airlines went down by 2.3 percent but rose for the hospitality industry by 2 percent. TIA statistics also indicate that corporate travel declined by more than 14 percent in 1998-2003, but showed signs of revival in 2004.

Analysts at TIA have also revealed that rapid economic growth in China, India, Russia, and Poland have led to the creation of an affluent class that is ready and willing to travel to the US. In fact, analysts feel that this new market could see a steady growth in tourism to the US. However, an economic slowdown in Japan has seen a steady decline in tourism to the US, in the early 2000s. This trend appeared to change in late 2003 and 2004, with a gradual rise in Japanese tourism to the US.

To learn how the The Travel Team can help meet the corporate travel needs of your organization contact Sandy Munzert Toll-Free at 866-895-6543 or by clicking here.

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