Survey Shows Government Shutdown Hits Business Travel Industry Hard

There’s more evidence that the U.S. government shutdown is hitting the travel industry in all segments. In a new survey, the Global Business Travel Association (GBTA) that with the government shutdown now in week two roughly 40 percent of its business travel professionals said their companies and employees have been impacted by closure.

GBTA’s survey, in an online poll 257 of its members on Oct. 8, found that nearly seven in 10 (66 percent) of its members were concerned that a shutdown longer than one week will negatively impact their business, and nearly as many (59 percent) were concerned about the impact on their business from a possible government default.

GBTA pointed out that U.S. business travel spending, which has finally surpassed pre-recession levels, is a major driver of the global economy and is expected to reach $273 billion this year. But the government shutdown is severely impacting the business travel industry, creating uncertainty and lost revenue.

According to GBTA, the top three ways the shutdown has negatively impacted those in the business travel industry are cancelled meeting or business opportunities in the U.S. (57 percent), increased uncertainty about the economy (57 percent) and cancelled bookings (50 percent). Also high on the list are cancelled or delayed contracts with government agencies (48 percent), staff reductions due to reduced business activities (32 percent) and increased concern among travelers about airline delays and cancellations due to possible reduced air traffic controllers (29 percent).

“The shutdown is damaging productivity and leading to lost business opportunities and revenue that can't be recovered," said Michael McCormick, GBTA executive director and chief operating officer. "With two-thirds of our members concerned that the shutdown is negatively impacting their businesses, the wide-ranging impact on this industry is clear. This uncertainty hurts employee morale, holds back business growth and, if not stopped, can easily deliver a serious blow to the overall global economy.”

Source: Travel Pulse, http://www.travelpulse.com/survey-shows-government-shutdown-hits-business-travel-industry-hard.html