Optimistic the economy will continue to improve, U.S. business travel spending is expected to climb more than earlier forecasts, boosted by an increase in outbound international travel, mainly to Western Europe.
The new Global Business Travel Association quarterly report, released Wednesday, predicts U.S.business travel spending will rise 6.6 percent to $289.8 billion in 2014, up from a 3.8 percent growth rate in 2013. Looking at just international travel spending, the increase is expected to hit 12.5 percent (to $36.7 billion), which followed a 1.8 percent growth rate in 2013 and a mere 0.8 percent rise in 2012.
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"International outbound travel is the driver" of the increase, Mike McCormick, the executive director and chief operating officer of the association told CNBC in an interview Tuesday. And because an international traveler tends to spend more on airfare and hotels, on a per-person rate, overall spending goes up.