Business travel faces a long comeback. Although the industry will grow this year and on through 2013, the number of trips in 2013 will be only 485 million compared with nearly 567 million in 2000.
Videoconferencing is one reason. It’s now cheap enough and of sufficient quality to replace many face-to-face meetings, says Suzanne Cook, senior vice president of the U.S. Travel Association. Still, “not all travel can be replaced by sitting in front of a screen,” says Cook. Corporate travel policies that were tightened during the recession will be eased but will continue to require road warriors to justify each and every trip.
That will restrain any recuperation of hotels and restaurants. A modest uptick of 3% in revenue per hotel room is likely this year, followed by a 6.5% increase in 2011. It will take four to five years before the industry will fully recover from the downturn, analysts say.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Luxury hotels, which were particularly hard hit by the recession, will also make gains this year. Revenue per hotel room will be up about 5% after dropping 23% last year as companies, fearing bad publicity from having employees attend events in luxury surroundings, canceled trips and group meetings at those properties.
Full-service restaurants will see a slight increase of 1.2% this year after a 4% drop last year. But fast-food outlets and nonalcoholic beverage bars (think Starbucks) are sitting pretty. Fast-food establishments grew throughout the recession, while this year the Seattle coffee giant will enjoy a smart revenue rebound after a sales decline in 2009.
-
The Original Property Tax Hack: Avoiding The ‘Window Tax’Property Taxes Here’s how homeowners can challenge their home assessment and potentially reduce their property taxes — with a little lesson from history.
-
Is Mint Mobile's Home Internet a Game-Changer or Just Another Option?Mint Mobile recently unveiled its new home internet service. We break down how it works so you can determine if it's a great value for your needs.
-
Will AI Videos Disrupt Social Media?The Kiplinger Letter With the introduction of OpenAI’s new AI social media app, Sora, the internet is about to be flooded with startling AI-generated videos.
-
What Services Are Open During the Government Shutdown?The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Apple Readies for AI Upgrade with New iPhonesThe Kiplinger Letter The tech giant has stumbled when it comes to artificial intelligence, but a new batch of iPhones will help it make headway.
-
Japan Enters a New Era of Risk and ReformThe Kiplinger Letter Japan has entered a pivotal moment in its economic history, undertaking ambitious policy and structural reforms to escape from decades of stagnation.
-
How Consumers Are Tinkering with Cutting-Edge AIThe Kiplinger Letter Companies launching artificial intelligence tools are jostling for consumer attention. Some products are already building a deep connection with users.
-
After Years of Stagnant Growth, Hope Emerges for EU EconomyThe Kiplinger Letter Can a German fiscal push outweigh French political peril?
