Business and Convention travel down 14%

The good news is that business and convention travel is finally showing signs of recovery.  Business travel volume grew more than four percent in 2004 and strong growth is expected over the next few years.

Greater emphasis on travel policies and the increasing use of technology is part to blame.  Nearly three-quarters (71%) of all business air travelers in 2004 felt that the use of teleconferencing, webcasting or videoconferencing was somewhat or much more efficient than travel, up from 65 percent in 2002.

 “By showing that nearly one third of all travel dollars are spent on business travel, the 2004 Business and Convention Travelers Report helps quantify the importance of business travel to the travel industry and the American economy,” said NBTA Executive Director and COO, Bill Connors, CTC. “The number of business travelers adding leisure components to business trips and bringing family or friends with them shows the significant links between the leisure and business segments of the travel industry, which are often viewed as separate.”

Additional findings from the report:

    * A majority (57%) of business travelers are men; four in ten (43%) are women. Business travelers are an average age of 47 years, with 45 percent being Baby Boomers.

    * A small group of business travelers take the majority of trips. Frequent business travelers (10+ trips per year) make up 17 percent of all business travelers, yet they take nearly two-thirds (64%) of all business trips.

    * The majority (64%) of U.S. business travelers are infrequent travelers, taking 1 – 4 business trips per year, but they account for only 20 percent of total business trip volume.

    * Overall, U.S. adults who travel on business take an average of 7 business trips a year.

    * Combined business/pleasure travel has not suffered as much as general business travel or convention, conference or seminar travel. In fact, 62 percent of U.S. business travelers add a leisure component to at least one business trip per year. Two-thirds of them bring family members or friends along.

    * Frequent traveler programs are popular with business travelers, with nearly half (47%) participating in one or more frequent flyer programs and over a third (36%) participating in frequent hotel guest programs.

    * Some services on business trips are more popular than others. In-room Internet access (45%) and hotel fitness centers (43%) are used at least sometimes by the greatest share of business travelers. Generally, the younger a business traveler is, the more likely they will use various services on business trips. For example, while 27 percent of those under the age of 55 say they always or frequently use in-room Internet access, only 15 percent of those 55 years of age and older do so.

    * Distance is increasingly playing a role in deciding whether to fly than in the past. Over 60 percent of all business travelers said they are more likely to drive rather than fly on trips of 300 miles or less.

    * But recovery in business travel by air does seem to be underway. One-quarter (24%) of business travelers indicated that during the past 12 months (Sept 2003 to Aug 2004) they took more business trips by air compared to the previous year.

    * Most (60%) business travelers say they enjoy traveling on business and this is especially true among frequent business travelers (69%). Still, some of their attitudes reveal potential factors influencing the slowdown in business travel, with a majority (55%) saying they’re concerned about being away from their families and nearly half (49%) remain concerned about the safety and security of business travel.

    * In addition, business travelers think, in most cases, that travel conditions have gotten worse in the past 12 months. Nearly half say that wait times in security lines have gotten worse (49%), more than one-third think flight delays (38%) and/or in-flight service (36%) has gotten worse, and one in five (22%) thinks airline ground service has gotten worse. Frequent business travelers were more divided in their opinions. For example, they were more likely to say security lines have improved.