AMERICAS – A new survey of business travel professionals carried out by the Global Business Travel Association (GBTA) has revealed that nearly seven in 10 (66 per cent) are concerned that a US government shutdown longer than one week will negatively impact their business.
In addition to this, the survey revealed 59 per cent are concerned about the impact on their business from a possible government default, and 40 per cent of respondents say the shutdown has impacted them, their company, and/or their company’s employees.
US business travel spending is a major driver of the global economy, says the GBTA, and finally surpassing pre-recession levels, US business travel spending is expected to reach US$273bn this year. The government shutdown, however, is severely impacting the business travel industry, creating uncertainty and lost revenue, according to the GBTA.
“The shutdown is damaging productivity and leading to lost business opportunities and revenue that can’t be recovered,” said GBTA Executive Director and COO, Michael McCormick. “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.”
The survey revealed the top three ways the shutdown had negatively impacted those in the business travel industry as follows: cancelled meetings or business opportunities (57 per cent); increased uncertainty about the economy (57 per cent); and cancelled bookings (50 per cent). Also high on the list were cancelled or delayed contracts with government agencies (48 per cent), staff reductions due to reduced business activities (32 per cent) and increased concern among travellers about airline delays and cancellations due to possible reduced air traffic controllers (29 per cent).
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