Costs to rise, but travelers still will take to the skies
By Susan Avery -- Purchasing, 1/15/2009 2:00:00 AM
At year end, travel management companies and other sources publish forecasts for travel buyers to consult when planning budgets for the following 12 months.
One, the 2009 Business Travel Overview and Cost Forecast by the National Business Travel Association in Alexandria, Va., shows U.S. travel costs to rise on average 3-5% in 2009. To prepare its forecast, NBTA uses online buyer surveys and analyzes data from the Bureau of Transportation, the International Air Transport Association, Smith Research and other sources.
NBTA's research, along with results of surveys conducted late last year by the TMCs, shows that while buyers expect travelers at their companies to take roughly the same number of trips this year, they are keeping a close eye on costs and working to improve compliance to travel policy and procurement's preferred suppliers.
That's because this year, for the most part, companies hesitate to cut back on travel. Travel is part of overall corporate strategy, they say, and key to meeting goals and staying one step ahead of the competition.
Here is a look at forecasts for air, hotel, car rental and meetings and events planning for 2009:
-
Air. NBTA sees fares rising 7-10% or about $140–$175 per trip. Still-pricey jet fuel and reduced seat capacity are contributing to the increases. New airline ancillary fees add up to 5% more.
-
Hotels. The group also expects hotel room rates to rise, though not as much as airfare. The forecast is for increases of 1–4%. It estimates an average rate of $130, up from $129 a year ago.
-
Car rental. NBTA sees car rental rates rising 1–3%. Average corporate car rental rate in the U.S. for 2008 is $44, an increase of 4% from the previous year.
-
Meetings and events. Results of buyer surveys are about evenly split: 38% expect meetings spend to remain flat with 2008, 31% project a reduction in spend and 32% foresee an increase.
Car-rental rates to remain flat
11/19/2008Corporate travel spending to grow in 2010
10/20/2009Spending on business travel to rise globally
07/27/2009Airfare, hotel room rates fall-again
08/31/2009
Now Playing: 