According to the recent American Express Global Business Travel Forecast, pent-up trip demand coupled with supply base changes are likely to cause rates for business class airfares to increase by the end of 2010.
“Considering airfare, hotel and ground transportation, we expect the average domestic business trip to increase 1.2 percent, or $13, to a total of approximately $1,080,” said Herve Sedky, vice president and general manager of American Express Business Travel.
An increase of 2.4 percent, or approximately $67, is expected for international business trips, to bring the average cost to $2,818.
Overall, business travel spending is predicted to be up 1 percent in the U.S. and a whopping 15 percent in Canada in 2010. Route and capacity reductions made in the region in an effort to equalize the decrease in demand in 2009 are expected to force prices up in North America in 2010, higher than most other regions.
Hotel rates are expected to remain on the decline in North America as hoteliers attempt to attract both business and consumer travelers. Car rental rates will likely increase slightly as the cost of vehicles is expected to rise following decreases in capacity in 2009 and car manufacturing consolidation driving up the cost of replacing relatively old fleets.
