U.S. Project-Based Business Travel Spend Topped $45 Billion in 2017
June 20, 2018 12:16pm
ALEXANDRIA, Va.--In 2017, project-based business travel spending reached $45.4 billion USD, comprising 15 percent of all U.S. business travel spending, according to a first-of-its-kind study from the Global Business Travel Association (GBTA), in partnership with InterContinental Hotels Group. In total, 66 million trips were taken last year for project-based purposes, representing 12 percent of all U.S. business trips and 19 percent of all U.S. business trips taken for transient purposes. To be considered project-based travel, the travel must revolve around a project, have both a start and end date, and have a duration of at least four nights or have some recurring component. It does not include group travel, relocation or travel for training.
“Demand for project-based business travel will continue to rise with top project-intense sectors forecasted to grow faster than the broader economy in the coming years,” said Michael W. McCormick, GBTA executive director and COO. “While project-based business travel is extremely diverse, there are key underlying trends revealed in this study that marketers, suppliers and travel buyers can use to increase revenue, cut costs and improve traveler satisfaction.”
“This study clearly demonstrates the breadth and depth of the project-based segment,” said Derek DeCross, Senior Vice President, Global Sales, IHG. “Based upon the learnings from this study, the industry has an opportunity to develop more effective strategies to engage this segment of travelers to best serve their unique needs moving forward.”
The average spend per business trip was significantly higher for trips taken for project-based purposes ($679) than for other business trips ($533) taken over the same period. The higher spending is driven by longer average stays and higher trip budgets. Project -based business travelers spent a total of $15.9 billion on lodging, $14.6 billion on air transportation, $7.0 billion on food & beverage, $1.8 billion on entertainment, $4.2 billion on ground transportation and $1.9 billion on retail.
Project-Based Business Travel Widely Distributed Across United States
Project-based business travel mainly reflects the distribution of broader-based business travel activity with Los Angeles (7 percent of all project trips), New York (5 percent), Las Vegas (4 percent), Chicago (4 percent) and San Francisco (4 percent) coming in as the top project-based markets. There are also a handful of states noted in the graphic that have a higher proportion of project-based business travel relative to all business travel activity.
Breaking Down Project-Based Business Travel
While the rate at which firms invest in project-based business travel differs significantly across industries, the top three industries include manufacturing, real estate and professional services – with $10 billion alone spent on the manufacturing project-based market. The most project-travel-intense sector by a wide margin is the construction industry, with project travel comprising 20 percent of total business travel spending.
A significantly higher proportion of project-based trip budgets get allocated towards accommodations with the average amount spent per trip on lodging coming in 142 percent higher for project-based trips than non-project based trips. When it comes to choosing a hotel property, location by far trumps all other attributes driving the lodging choice. Project-based business travelers are also significantly less likely to book lodging on their own directly through a hotel. Project travelers’ top three amenities when choosing lodging include WiFi access, having breakfast included in the rate and being able to secure additional loyalty points.
The study also delves further into the profile and trip behavior of project-based business travelers.
The report, Project-Based Business Travel in the United States, is available exclusively to GBTA members by clicking here and non-members may purchase the report through GBTA by emailing Paul Yachnes.
For reporters interested in a copy of the full study, which includes the methodology, please contact Colleen Gallagher.
Tags: global business travel association,
The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA’s 9,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA delivers world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, visit www.gbta.org.
Contact: Colleen Lerro Gallagher
IHG® (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of hotel brands, including InterContinental® Hotels & Resorts, Kimpton® Hotels & Restaurants, Hotel Indigo®, EVEN® Hotels, HUALUXE® Hotels and Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn®, Holiday Inn Express®, Holiday Inn Club Vacations®, Holiday Inn Resort®, avid™ hotels, Staybridge Suites® and Candlewood Suites®.
IHG franchises, leases, manages or owns nearly 5,400 hotels and 800,000 guest rooms in almost 100 countries, with more than 1,700 hotels in its development pipeline. IHG also manages IHG® Rewards Club, our global loyalty programme, which has more than 100 million enrolled members.
InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales. More than 375,000 people work across IHG's hotels and corporate offices globally.
Visit www.ihg.com for hotel information.
IHG and Shimao Group Plan Q4 2018 Opening of InterContinental Shanghai Wonderland
Lotus Trans Travel and IHG Sign Portfolio Deal for Four Holiday Inn Hotels in India
Martyn Barnes to Bring IHG's New voco™ Brand to Australia's Yarra Valley in 2021
Marriott, Hilton, and IHG Top Franchise Companies and Brands in U.S. Construction Pipeline
IHG Opens First Hotel Indigo in Mississippi, The Hotel Indigo®-Hattiesburg
IHG Signs With Mulpha Australia Limited for Management and Rebranding of 166-Room Hayman Island, by InterContinental Opening in 2019
IHG Appoints Angelo Zuccala as General Manager for InterContinental Sofia
Buoyant Global Economy Means Higher Hotel and Air Prices in 2019
IHG and Ninety Four Feet Partner to Debut New Zealand's First Hotel Idigo With 2021 Opening of Hotel Indigo Auckland
Companies Increasingly Exposed to Financial Loss and Duty of Care Violations as the Number of Meetings Grow
IHG and TSUKADA GLOBAL HOLDINGS to Debut Kimpton Brand in Japan With 2020 Opening of Kimpton Tokyo Shinjuku
IHG Signs With Pearl Grand Tower Hotel for InterContinental® Colombo Slated for 2019 Opening in Sri Lanka
IHG Completes Acquisition of 51% Stake in Regent Hotels & Resorts for $39 Million
IHG Signs With Hotel Marina Agra for Holiday Inn Agra MG Road in India
Kimpton Saint George Opens in Toronto With General Manager Bertrand Mangeot at the Helm
IHG Opens 459-Key InterContinental® Phu Quoc Long Beach Resort in Vietnam
IHG Launches New Upscale Brand, voco, With a Signing in Australia
Inuyama, in Japan’s Aichi Prefecture, to Debut Hotel Indigo, Its First Internationally-Branded Hotel
IHG Partners With SDB Developers to Expand Presence in Kolkata with Signing of Holiday Inn Resort Kolkata NH6
DUR Hospitality and IHG Open the 304-Room Crowne Plaza Riyadh Palace
Please login or register to post a comment.