Good news, business travelers: U.S. companies are predicted to spend 5% more on travel expenses in 2011 than they did last year. This sign of confidence that the economy is improving gives a much-needed boost to airlines, hotels & corporate housing, and rental-car companies. In the fourth quarter of 2010, the U.S. economic output actually returned to its pre-recession level and the economy is only forecast to grow more in 2011.
Conducting business face-to-face versus via text messages and e-mail can make a huge difference – with the quality of information being transmitted in person increasing dramatically. Some executives will argue that business travel is not only helpful, but necessary, for their companies to thrive and compete in the global market.
Though budgets are rising, spending on business travel isn’t expected to return to its pre-recession level until the middle of 2013 because employees are still being asked to travel frugally. You may be asked by your employer to spend fewer nights on the road, rent less-luxurious cars and even take flights that aren’t non-stop in order to save money on expenses. Your company may be paying for you to fly to your corporate housing San Diego destination, but don’t expect them to throw in a round of golf, massage or bottle of wine any time too soon.