US business travel recovery to stall?
With recent deteriorating airline conditions, might previously optimistic predictions about business travel growth have to be revised? Yes, says Kevin Mitchell, chairman of the Business Travel Coalition, which represents business travelers and corporate travel departments. He is predicting a drop in bookings of up to 15% after the latest incidents that included security actions and terrorism warnings, as well as a slew of flight cancellations. One of the major reasons for a possible slowdown: in light of recent developments, US companies are re-assessing whether to send employees abroad in the near future. The Travel Industry Association had predicted international travel to the US would increase 5% in 2004. That would have been the first increase since 2000. But now the predictions are in jeopardy. “There is definitely going to be an impact,” Mr Mitchell said of recent developments. ”That impact will be mitigated if we get through this quickly.” At the same time, leisure travel in the US appears to be on the increase, according to the Travel Industry Association of America. They expect leisure travel trips this winter to number about 164 million, or about 2-3 percent over the winter of 2002.
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