Travel prices to rise in 2008

Demand for business travel services is set to increase in 2008, meaning travellers face higher air, hotel, car rental and other corporate travel fares.

The annual American Express global business travel forecast predicts hotel rates will rise by an average of between 11% and 14% across the US, Europe and Asia, while air fares for short-term flights will increase by between 1% and 4%, and 5% to 8% for long-haul voyages.

“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 Mike Streit, vice president and global leader for American Express Business Travel Advisory Services.

“Successful travel and entertainment management strategies will focus not just on controlling travel expenses, but also on identifying additional areas to control costs and save, such as entertainment and related services including corporate meetings and events.”