Amex: Travel costs rise slightly
By Susan Avery -- Purchasing, 11/13/2008 2:00:00 AM
Travel costs will rise only slightly next year according to the American Express Business Travel which released its 2009 Global Business Travel Forecast and Trends Report in October.
"We see the halt of a steady upward climb of costs," says Hervé Sedky, vice president and general manager of Global Advisory Services and Meetings Solutions at American Express Business Travel in New York. "This presents a good opportunity for travel buyers."
American Express expects average cost of a domestic trip including air, hotel and car rental to rise 2.8% to $1,030. The average cost of an international trip will rise 4.3% to $3,056.
Amex's travel forecast for North America shows moderate changes in airfares. "We'll likely see reduction in domestic economy fares," says Frank Schnur, vice president of Global Advisory Services. The forecast: A 5% drop to an increase of 5% in domestic fares and an increase of 1–6% in international fares.
"We expect hotels to feel the impact of a struggling economy," he says. The forecast: For mid-range properties, a 1% decrease to a 5% increase. For upper-range properties, a 2% decrease to a 4.5% increase.
Now Playing: 
