Airfares Up, Hotel Rates Down in '10

Higher airfares, lower hotel rates and meeting planners loosening their budgets: That's the prognosis for the coming year, according to American Express Business Travel, which recently released the findings of its 2010 Global Business Travel Forecast.

The report found that next year overall business travel is expected to increase 1 percent in the United States and 15 percent in Canada.

In North America as a whole, domestic airfares may rise 2 to 7 percent and international airfares may go up 1 to 6 percent as a result of pent-up demand for travel, following a year of restricted travel for many companies, according to the report.

As for hotel rates, those in the mid-range may decrease 1 to 4 percent, while upper-range hotels could drop 3 to 6 percent, as hoteliers try to lure travelers back.

Herve Sedkey, vice president and general manager of AEBT, said, taking into consideration airfares, hotel and ground transportation, the cost of the average domestic business trip is expected to rise 1.2 percent, or $13, to a total of about $1,080. The cost of international travel may increase 2.4 percent, or approximately $67, to a total of about $2,818.

However, Sedkey added, “As unbundled and ancillary fees continue to add to the cost of trips, businesses should expect to add up to an estimated 15 percent to the total trip cost for air, hotel and ground transport elements alone.”