Industry News - Chauffeur Driven Magazine

Details: Category: Industry News; Published: 2023, February 07

January’s US jobs report was a stunner all around, shattering the expectations of economists nationwide. Nonfarm payrolls increased by 517,000 for the month, almost tripling the Dow Jones estimate of 187,000, and the unemployment rate fell to 3.4 percent, the lowest since May 1969 (before we walked on the moon!). Many economists were encouraged by the strong numbers in 2022 but predicted that a slowdown was ont he horizon, starting with the first month of 2023.

US Travel Association President & CEO Geoff Freeman

On February 3, the US Bureau of Labor Statistics (BLS) reported that job growth was widespread, led by gains in leisure and hospitality, professional and business services, and health care. Leisure and hospitality added 128,000 jobs in January compared with an average of 89,000 jobs per month in 2022. As the chauffeured ground transportation industry can attest, leisure and hospitality was the hardest hit sector during the pandemic; however, in recent months, the sector has seen consistent growth, largely leading in gains month-over-month among other industries. However, despite the continual positive growth, according to the BLS, to date, employment in leisure and hospitality remains below its pre-pandemic February 2020 level by 495,000, or 2.9 percent. Other significant gainers were professional and business services (82,000), government (74,000), and health care (58,000). Retail was up 30,000 and construction added 25,000.

While hiring remains strong, the unexpected numbers complicate the job of the Federal Reserve to tamp down on high inflation. So far, the Fed has been using incremental increases in interest rates to try and cool off a super-heated economy, but with little effect. Fed Chairman Jerome Powell has stated that additional rate hikes are expected this year, matching levels not seen since 2006 at around 5.1 percent--but nowhere near the double-digit rates of the '80s.

US Travel Association President & CEO Geoff Freeman is encouraged by sector’s gains: “[The report]—in which 25 percent of all new jobs were added in the leisure and hospitality sector—is further evidence that travel is essential to the U.S. economy. Travel’s success is the nation’s success, and robust travel demand is supercharging our nation’s economic recovery and job growth.”

The full report can be accessed by clicking here.

[02.07.23]

Details: Category: Industry News; Published: 2023, February 07

Global business travel is expected to see an uptick in 2023 versus 2022, according to the latest data from the Q1 2023 Business Travel Outlook Poll from the Global Business Travel Association (GBTA). Companies are expected to send more employees on trips and travel suppliers anticipate an increase in corporate travel spending. Sectors such as finance, insurance, professional services, and consulting are showing stronger signs of growth in business travel spending.

GBTA CEO Suzanne Neufang

The association surveyed over 600 business travel buyers, suppliers, and industry professionals around the world, marking the 30^th poll in its series tracking the ongoing evolution of business travel.

“GBTA continues to draw on the collective, diverse perspectives and insights across our industry to closely track the evolving state of global business travel. The return of business travel will vary across regions, sectors, and companies. And despite ongoing global concerns of a recession, a majority of corporate travel managers indicate their companies are anticipating more business travel than last year,” said GBTA CEO Suzanne Neufang.

Additional key takeaways include:

Back on the road and in the air—more business trips are expected in 2023.

Business leaders may anticipate a recession this year, but travel managers are anticipating more business travel. Three in four travel managers (78 percent) expect their company will take a lot more (22 percent) or more (55 percent) business trips in 2023 versus 2022.
An overwhelming 90 percent of respondents believe their employees are willing to travel for business, while 88 percent report feeling more optimistic about the path to recovery compared to last month.

Business travel bookings and spending continue making their way back to 2019 levels.

On average, travel buyers estimate their companies’ current domestic business travel bookings have returned to 67 percent of pre-pandemic 2019 levels (up from 63 percent in GBTA’s October poll).
International business travel continues to gain ground. In this poll, on average, travel buyers estimate international business travel bookings have recovered to 54 percent, up slightly from 50 percent in October. Current spending for international trips is back to approximately 58 percent.

Staffing for travel suppliers is still suppressed but help may be on the way in 2023.

Travel suppliers and travel management companies were forced to reduce staff during the pandemic—even now, many of these companies are not yet fully re-staffed. Almost half of travel suppliers (47 percent) report their company’s staffing level is somewhat or much smaller than it was pre-pandemic, while 28 percent say it is about the same.
However, two in three travel suppliers (65 percent) expect staffing will increase a lot or somewhat in 2023 compared to 2022, while 26 percent expect no change.

Company travel programs hold their (pre-pandemic) ground when it comes to staffing.

While many travel suppliers emerged from the pandemic with fewer staff, the same has rarely happened with travel programs. The majority of buyers (78 percent) say their company’s travel program staff size in 2023 is expected to be about the same (56 percent) as it was pre-pandemic or will be much or somewhat larger (22 percent).
Many buyers also expect to increase spending for their travel program operations (such as staff salaries, technology, and consultants) in 2023 versus last year. Almost half of buyers (45 percent) expect their travel program budgets will be higher, while 41 percent expect them to be about the same as in 2022.

Click here to view the complete poll.

Visit gbta.org for more information.

[02.07.23]

Details: Category: Industry News; Published: 2023, February 06

Last month, the US Department of Commerce announced the appointments of 32 leaders from businesses and organizations in the domestic travel and tourism industry to the US Travel and Tourism Advisory Board (TTAB). TTAB members advise the Secretary of Commerce on how government policies and programs affect the travel and tourism industry and offer counsel on current and emerging issues to support sustainable growth of the travel and tourism industry as our nation’s economic engine.

"Travel and tourism returned with force in 2022 as we opened up our country once again to visitors from around the globe,” said Secretary of Commerce Gina Raimondo. “Since day one of the Biden Administration, the Commerce Department has taken decisive actions to support this industry’s recovery. The US Travel and Tourism Advisory Board plays a vital role in providing expert recommendations and industry insight to optimize the American travel experience. I look forward to working with new and returning members.”

TTAB was first chartered in 2003 and has been re-chartered nine times. Past boards have provided advice on a wide range of policies and issues, including travel facilitation, visa policy, infrastructure, aviation security, tourism research, climate, and economic sustainability.

The membership for the 2023-2024 term of TTAB listed below includes representatives of state and regional economic development teams, businesses, and organizations:

Reggie Aggarwal, CEO of Cvent
Balram Bheodari, Aviation General Manager for Hartsfield-Jackson Atlanta International Airport
Adam Burke, President & CEO of Los Angeles Tourism & Convention Board
Brian Chesky, CEO of Airbnb
Julie Coker, President & CEO of the San Diego Tourism Authority
Brad Dean, CEO of Discover Puerto Rico
Christine Duffy, President of Carnival Cruise Line
Fred Felleman, Commissioner of the Port of Seattle
Liz Fitzsimmons, Managing Director of the Maryland Department of Commerce Office of Tourism and Film
Matt Goldberg, President & CEO of Tripadvisor
Mufi Hannemann, President & CEO of the Hawaii Lodging & Tourism Association
Russ Hedge, President & CEO of Hostelling International USA
Bill Hornbuckle, President & CEO of MGM Resorts International
Peter Ingram, President & CEO of Hawaiian Airlines
Stephanie Jones, CEO of the Cultural Heritage Economic Alliance
Andrew Leary, Director of Sustainable Tourism and Partnerships for Leave No Trace
Eric Lipp, Executive Director of Open Doors Organization
Casandra Matej, President & CEO of Visit Orlando
Peter Millones, Executive Vice President and General Counsel of Booking Holdings
Will Morey, President & CEO of The Morey Organization
Tricia Primrose, Executive Vice President of Marriott International
Lana Ramos, Vice President of Marketing and Community Relations for Locally Grown Restaurants
Carroll Rheem, CEO of iolite group
Dan Richards, CEO of The Global Rescue Companies
Adam Sacks, President of Tourism Economics
John Sage, President of Accessible Travel Solutions
Stephen Scherr, CEO of the Hertz Corporation
Greg Schulze, Senior Vice President of Expedia
Monica Smith, President & CEO of Southeast Tourism Society
Jerry Tan, President & CEO of Tan Holdings
Donald “D” Taylor, President of UNITE HERE
Peter van Berkel, President of Travalco USA