Cost of business travel to rocket
An article from AFP says that business travel costs around the world are expected to see a big surge in 2008 with airfares pushed up by rising fuel prices and hotels rates squeezed by growing demands, a survey has shown.
The American Express Global Business Travel Forecast said hotel rates are especially pressured in major cities around the world because new construction has failed to keep pace with demand.
Some regions are facing unusually high demands including cities in India where hotel rates are likely to rise as much as 40 per cent; the 2008 Summer Olympics is expected to be a factor in pushing up lodging costs in China, the report added.
For US companies surveyed, the average cost of a domestic trip is expected to rise 6 per cent to $US1110 ($1254) and 6.9 per cent for an international trip to $US3171 ($3583), including air travel, lodging and car rental.
“Travel managers and procurement professionals can expect another capacity-restricted, challenging year and a continued push to keep travel and entertainment budgets in check,” said American Express Business Travel vice president Mike Streit.
Streit said some relief in air travel costs may come from the US-European Union “open skies” agreement that will increase flights, but that this may not be enough to lower transatlantic fares overall.
Globally, the report said air fares would rise one to four per cent for travel within a particular country or region and five to eight per cent for international flights.
Hotel prices globally were expected to rise 11 to 14 per cent, with some locations such as New York, London and cities in India seeing bigger hikes.
A Report by The Mole from AFP
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