The American Express Global Business Travel Forecast for 2005 indicates a continued steady…
The American Express Global Business Travel Forecast for 2005 indicates a continued steady revival of the global business travel industry.
Although the pace varies significantly by region and country, published air and hotel prices are expected to rise incrementally next year as business travel demand recovers, outpacing the growth of supply in several markets, it said.
At the same time, increased competition – particularly in the airline sector in several regional markets – is likely to dampen any significant increase in business travel costs, said the American Express.
For 2005, American Express forecasts that global economy/short-haul fares will rise by zero to 3 percent, and international business fares by 2 to 3 percent. On the hotel side, room rates for both mid-range and upper-range properties will increase by 1 to 3 percent.
Economic recovery is fueling business travel demand around the world, with particularly strong demand between Europe and North America, South America, and across the Pacific, said Matthew Davis, director of American Express` Global Consulting Services Division.
Davis said, While rising passenger traffic and hotel occupancies help contribute to a healthier travel industry, forecasted price increases mean that travel managers must vigilantly maintain an effective travel management program. The careful application of technology tools and expense management solutions are critical in allowing corporation to maximize their travel investment, even in a rising fare environment.
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