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.
Sign up for Kiplinger’s Free E-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.
-
Take Charge of Retirement Spending With This Simple StrategyTo make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
Europe Faces Economic and Political Headwinds Next YearThe Letter Challenges for Europe: Potential tariffs, high energy prices and more competition from China will weigh on the bloc in 2025.
-
Don't Sleep on Japan's Economic TransformationThe Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
-
Kiplinger Outlook: Telecom Companies Brace for Tough TimesThe Letter The telecom industry is entering a new era that threatens profitability. But the coming Trump administration will make it easier for the major players to adjust.
-
Start-ups Trying to (Profitably) Solve the World’s Hardest ProblemsThe Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
-
The Big Questions for AR’s FutureThe Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
-
China's Economy Faces Darkening OutlookThe Letter What the slowdown in China means for U.S. businesses.
-
AI Start-ups Keep Scoring Huge SumsThe Kiplinger Letter Investors continue to make bigger bets on artificial intelligence start-ups, even for small teams with no revenue. Some backers think a startling tech breakthrough is near.
-
Should We Worry About the Slowing U.S. EconomyThe Letter With the labor market cooling off and financial markets turning jittery, just how healthy is the economy right now?
