There are signs of growth in the US economy but it is likely to be 2011 before there is any real recovery, according to US National Business Travel Association (NBTA) former chief executive Kevin Maguire.
Speaking to delegates at the Advantage conference in Heathrow, he said: “Is there a recovery coming? The answer is yes.
“It (the economy) has moved a bit and we will start to see more movement towards the end of the first quarter of 2010. However, we are not going to see real recovery until 2011.”
Maguire argued that consumer confidence will be “critical” to turning the US economy around and there are some positive signs that it is picking up.
“If you look at economic factors we have had three straight months of increased consumer spending,” he added.
The importance of travel to boosting the economy is also “critical”. NBTA research has revealed a quarter of all new clients come from face-to-face meetings and in return for every $1 spent on business travel it adds $12 to the economy.
He said: “It is scary. If you look at the US now, 51% (of corporates) have cut travel.Travel is critical to the growth of every economy.”
He also predicted airlines would cut their first-class seats with some airlines trading with no first-class option. He added that airlines would be forced to review their economy offer to cater for business travellers. One option would be increasing seat space so travellers can use their laptop computers, he said.