Business Travel Added $491B to U.S. Economy

The Global Business Travel Association (GBTA) Foundation’s “The United States Business Travel Industry: Road Warriors Impact on Jobs and the Economy” study highlights the positive economic impact that road warriors have on the U.S. economy.

According to the study, business travel was responsible for about 3% of U.S. GDP in 2012 ($491 billion). And for every 1% 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.

The study also shows that the U.S. business travel industry supports 7.1 million jobs and generated $118 billion in federal, state and local taxes.

“Business travel matters,” said Mike Fegley, vice president of 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.”

Other highlights from the study include:

  • In 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.
  • Of the $491 billion total from business travel, $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.
  • The average business trip lasts 1.75 days and covers 268 miles. The typical U.S. business traveler takes about four daytrips and two overnight trips per month.
  • U.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.


“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.”

The GBTA Foundation, the education and research foundation for the Global Business Travelers Association, conducted this study. Rockport Analytics provided the estimates on economic impacts.

For more information, visit www.gbta.org.

Comments

  1. Gil [ April 23, 2014 @ 06:20PM ]

    Glad we could help the ecomony. I travel almost 90% of the month for at least 10 months of the year.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.