U.S. companies are expected to spend 5 percent more on travel in 2011 than what they did in 2010. That's double the rate from 2010, which followed 2 years of decline.
Last year companies spent an estimated $228 billion, which helped U.S. airlines post their first collective profit in 3 years. Correspondingly, profits at hotel chains and rental car companies also increased in 2010 and are expected to rise in 2011. Signs that the industry is picking up:
• Hotel occupancy climbed nearly 8 percent last year, but average nightly rates have remained flat at $98.
• Rental-car demand grew by 2 percent in the first three quarters of 2010.
• Corporate retreats are rebounding, although groups are staying fewer nights and agendas are more business focused.
Business travel is expected to return to its pre-recession levels around June 2013.
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