California, New York, Florida, Texas, Georgia, and Illinois Boosting Business Travel in the US with Visa Waiver Program

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Business travel is a crucial driver of economic growth in the U.S., and states like California, New York, Florida, Texas, Georgia, and Illinois are playing a pivotal role in boosting this sector. By leveraging the U.S. Visa Waiver Program (VWP), these key states are making it easier for international professionals to travel to the U.S. for business. The VWP allows citizens from participating countries to enter the U.S. without a visa for short-term business visits, enhancing trade, investment, and collaboration opportunities. Alongside the B1 visa, which caters to business travelers from non-VWP countries or those needing longer stays, these programs are helping streamline the travel process and strengthen global business relationships. This article explores how these six states are harnessing the benefits of the VWP and B1 visa to drive business travel and support the U.S. economy.

Business Travel Rebounds in Key U.S. States

Business travel in the U.S. is bouncing back, with California, New York, Florida, Texas, Georgia, and Illinois driving this resurgence. These states are leveraging the Visa Waiver Program (VWP) to simplify international business travel. As the industry leaves the pandemic behind, global business travel spending is projected to reach $1.48 trillion by the end of 2024, surpassing the previous record of $1.43 trillion set in 2019. By 2028, spending is expected to exceed $2 trillion, signaling ongoing growth in the sector.

Global business travel spending is forecasted to grow by 11.1% in 2024, following the significant increases of 30%-47% year-over-year in 2022 and 2023. The growth rate is expected to moderate between 2025 and 2028, with an annual compound growth rate of 6.95%.

U.S. Leads in Business Travel Recovery

In 2023, the U.S. achieved a remarkable recovery, regaining approximately $675 billion of the $770 billion lost in 2020, according to GBTA BTI™ analysis. Business travel spending surged by 30% compared to 2022, reaching $1.3 trillion. This recovery was driven by key states like California, Texas, and New York, which have capitalized on the VWP to welcome international travelers. By the end of 2023, business travel spending in the U.S. had reached 93% of its pre-pandemic peak.

Easing Travel Restrictions with the VWP

A GBTA survey involving 4,100 business travelers from 28 countries across North America, Europe, Asia Pacific, and Latin America showed that 64% of global business travelers increased their spending in 2023. However, over a third (37%) reported encountering stricter travel policies than before the pandemic. The VWP has been crucial in reducing these barriers, especially in U.S. destinations like Florida and Georgia, which continue to attract international travelers.

When it comes to payment methods, nearly two-thirds (61%) of global business travelers use corporate credit cards. North American business travelers are particularly reliant on these cards, with almost a third charging 100% of their travel expenses to them.

Rising Airfares Reflect Strong Recovery

As per AMEX, Airfare in the U.S. also mirrored the recovery in business travel, with average ticket prices reaching $777 in 2023, a 4.3% rise over the previous year. North America saw the highest premium ticket prices, averaging $5,847. Although price growth is expected to slow to 3.5% in 2024 and 0.5% in 2025, Boeing’s delays in delivering new planes are keeping upward pressure on airfares, even though increased industry capacity may provide some relief.

Business Travel’s Economic Impact on the U.S. Economy

The Global Business Travel Association (GBTA) recently released its “GBTA U.S. Economic Impact Study: Business Travel’s Impact on Jobs and the U.S. Economy,” highlighting how business travel significantly boosted the U.S. economy in 2022. The data reveals that U.S. business travel expenditures totaled $421.1 billion, generating $119 billion in tax receipts. Business travel also supported 6 million jobs, making up 3.5% of the country’s total employment. For every dollar spent on business travel, $1.15 was returned to the U.S. economy in the form of new gross domestic product (GDP). Key sectors benefiting from business travel include food services (38%), accommodations (19%), and transportation and warehousing (11%).

U.S. Leads Global Business Travel Spending

In 2022, the U.S. led the world in business travel spending and is expected to remain one of the top markets in 2024, according to the GBTA’s forecast. Although final data is still pending for 2023, estimates show that U.S. business travel spending will have increased by about 7% over 2019 levels, further signaling a robust recovery. On a global scale, business travel spending is projected to surpass $1.5 trillion by 2024, underscoring the strength of the sector.

Business travel remains a significant contributor to the U.S. economy, accounting for 1.9% of the total economy. A total of 429.9 million business trips were taken within the U.S. in 2022, with 67% of these trips being for transient purposes, such as sales, client services, government, military travel, and construction or repair-related trips. The remaining 33% involved conference and event travel.

Changing Travel Patterns and Spending Habits

Business travelers are also staying longer on their trips, with the average trip length increasing to 4.1 days in 2022, compared to 3.3 days in 2017. The average spending per business trip was $632, with 34% ($214) going toward lodging, the largest spending category.

The profile of U.S. business travelers reveals that the average age is 44.3 years. Around one-third (33.9%) of travelers have an annual household income below $50,000, while 31.5% earn more than $100,000. Another key trend in 2022 was the rise of “bleisure” travel, where business and leisure trips are combined. Over one-third (33.8%) of all business trips included leisure components, and on average, travelers stayed for 4.4 days during these blended trips. Interestingly, while men traveled more frequently for business, women were more likely to add leisure to their business trips.

Top States as per Business Travel Spending

The top states in terms of business travel destination spending accounted for 65% of the total U.S. business travel expenditures. Leading the list were:

• California: $35.62 billion
• New York: $23.31 billion
• Florida: $23.26 billion
• Texas: $18.68 billion
• Georgia: $9.65 billion
• Illinois: $9.57 billion
• Colorado: $7.05 billion
• Pennsylvania: $6.84 billion
• New Jersey: $6.68 billion
• Washington: $6.55 billion

Visa Waiver Program (VWP) and B-1 Visa: Facilitating Business Travel

The Visa Waiver Program (VWP) and B-1 visa play crucial roles in enabling international business travel to the United States, catering to the different needs of foreign visitors.

Visa Waiver Program (VWP): Streamlining Short-Term Business Travel

The VWP allows citizens from 41 participating countries to travel to the U.S. for business or tourism without needing a visa, as long as their stay is 90 days or less. The program aims to boost trade relations and support the U.S. travel and tourism sectors by simplifying the entry process for short-term business travelers. In 2014, visitors traveling under the VWP contributed about $190 billion to the U.S. economy and supported nearly 1 million jobs, underscoring the program’s substantial economic impact.

The Visa Waiver Program (VWP) includes a diverse group of countries that benefit from simplified travel to the United States for business and tourism purposes. These countries include Andorra, Australia, Austria, Belgium, Brunei, Chile, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, the Netherlands, New Zealand, Norway, Poland, Portugal, Qatar, San Marino, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan, and the United Kingdom. Citizens from these nations can travel to the U.S. without a visa for up to 90 days, allowing for smoother business interactions and fostering international trade and investment. The inclusion of these countries highlights the U.S.’s commitment to building global relationships and enhancing its role as a key destination for international business.

To qualify for the VWP, travelers must hold an electronic passport, and their visit must be limited to business meetings, conferences, or tourism activities. Importantly, they cannot engage in employment or work that would otherwise require a visa. The VWP is particularly beneficial for businesses looking to build international relationships swiftly and efficiently, as it eliminates many bureaucratic hurdles.

B-1 Visa: Longer Stays for Business

The B-1 visa, on the other hand, is tailored for individuals who need to stay longer than 90 days or are from countries that are not part of the VWP. It is designed for temporary business purposes, such as meetings, contract negotiations, or attending conferences. The B-1 visa provides access to business opportunities in the U.S. for travelers who do not qualify for the VWP, helping companies and professionals maintain strong global connections.

Top U.S. Business Travel Destinations and Emerging Trends

Business travel in the U.S. continues to thrive, with some destinations standing out as key business hubs. According to AMEX, the top cities for business travel include:

• New York City
• Las Vegas
• San Francisco
• Chicago
• Washington, DC
• Boston
• Los Angeles (LA)
• Seattle
• Houston
• Atlanta

However, it’s not just the cities shaping business travel as we head into 2024—there are also a few emerging trends that are redefining the corporate travel landscape.

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Emerging Trends in Business Travel

Bleisure Travel: More corporate travelers are combining business with leisure, turning work trips into opportunities for short vacations. It’s become common for professionals to extend their business trips by a few days to enjoy a personal getaway, either before or after their meetings.

Focus on Wellness: With wellness becoming a higher priority for many travelers, hotels and airlines are adapting. Business travelers can now expect healthier food options, expanded fitness amenities, and wellness-focused accommodations as part of their trips.

Environmental Sustainability: Companies are increasingly adopting eco-friendly travel policies. Sustainable transportation, accommodation, and event practices are becoming more mainstream as businesses place a greater emphasis on reducing their carbon footprint.

Turning to Tech: Advanced technologies like artificial intelligence (AI) and virtual reality (VR) are transforming business travel. AI-powered travel assistance, virtual meetings, and contactless solutions are now becoming common features of corporate travel experiences.

Tax Revenue from Business Travel

Business travel continues to play a significant role in generating tax revenue for the U.S. economy. In 2022, federal tax collections generated from business travel activity reached $61 billion USD, representing 1.2% of total federal tax collections. The largest sources of federal tax revenue came from personal income taxes ($19.9 billion) and social insurance taxes ($27.3 billion). Additionally, corporate income taxes contributed $1.5 billion, while excise fees generated $9.6 billion.

State and local tax collections from business travel activity also made a considerable impact, totaling $51.3 billion in 2022. This represented 3.5% of total state and local tax collections. Key contributors included sales taxes, which primarily benefited state revenues, amounting to $19 billion, and property taxes, mostly collected at the local level, which generated $18.3 billion. Other significant sources included state and local personal income taxes, as well as excise taxes on hotels and rental cars.

Demographics of U.S. Business Travelers

U.S. business travelers come from a broad range of age groups, with the average age being 44.3 years. In 2022, fewer than one-third (29.1%) of frequent business travelers were under 35 years old, while 46.4% were between the ages of 35 and 54. About 24.5% were aged 55 and over. Those traveling for group business purposes tend to be younger than those traveling for transient business purposes, such as sales or client services.

Women accounted for 42.1% of conference and convention travel and 36.6% of other types of business travel. Interestingly, women made up 48% of all business-leisure (or “bleisure”) trips, adding a leisure component to their business travel at a higher rate than men. While men were more likely to travel for business overall, women proportionally embraced the opportunity to combine work with personal travel.

Top Convention Centers in Key Business Travel States

California:

• Los Angeles Convention Center (LACC) – Located in downtown LA, this center is one of the most renowned venues for conventions, trade shows, and exhibitions. Its prime location and modern facilities make it a favorite for international business events.
• Moscone Center (San Francisco) – Known for hosting major tech conferences like Salesforce’s Dreamforce, Moscone Center is a high-tech venue with expansive exhibition space in the heart of San Francisco.

New York:

• Jacob K. Javits Convention Center (New York City) – Situated in Manhattan, the Javits Center is one of the largest convention centers in the U.S. and is famous for hosting significant business events, including the New York International Auto Show and various trade exhibitions.

Florida:

• Orange County Convention Center (Orlando) – This massive venue, located near the heart of Orlando’s tourism hub, is one of the busiest convention centers in the U.S., attracting business travelers for major conventions, expos, and conferences throughout the year.
• Miami Beach Convention Center (Miami) – Recently renovated, this iconic center hosts a variety of large-scale events, including Art Basel and numerous international conferences.

Texas:

• George R. Brown Convention Center (Houston) – This Houston convention center offers expansive event spaces and state-of-the-art facilities, regularly hosting major international conferences and trade shows.
• Kay Bailey Hutchison Convention Center (Dallas) – Located in downtown Dallas, this venue is known for its versatility and ability to host everything from corporate events to large trade exhibitions.

Georgia:

• Georgia World Congress Center (Atlanta) – One of the largest convention centers in the U.S., the Georgia World Congress Center is a key venue for business events, hosting international trade shows, conventions, and meetings in the heart of Atlanta.

Illinois:

• McCormick Place (Chicago) – The largest convention center in North America, McCormick Place is an essential hub for business travel, regularly hosting some of the world’s largest conventions and trade shows, from technology expos to medical conferences.

California, New York, Florida, Texas, Georgia, and Illinois are at the forefront of the U.S. business travel resurgence, leveraging the Visa Waiver Program (VWP) and B1 visas to attract international professionals. These programs have simplified the entry process for business travelers, fostering stronger global connections and boosting the U.S. economy. As business travel continues to recover and grow, these key states are ensuring that the U.S. remains a competitive and appealing destination for international business. By facilitating smoother travel and building on their strengths in industries like technology, finance, and energy, these states are driving economic growth and positioning the U.S. as a global leader in business travel.