American Express is predicting that a pent up need for travel and meetings will be unleashed in early 2010 following weakened demand in 2009.
In its latest Global Business Travel Forecast, it said the surge is likely to cause rates to slightly increase in most travel categories by the end of next year.
Business class airfares in particular are expected to rise in line with reduced capacity and on-going business demand for international travel.
In Europe, demand is expected to grow in 2010 and fares are expected to decline in the first half of the year as airlines compete for market share.
Hotel rate changes are predicted to vary by country, but overall it is expected that rates will only increase modestly at best in Europe in 2010.
The report said while hotels in the US are unbundling services, European hotels are giving travellers additional amenities to attract their business and retain price levels.
The Forecast was produced by eXpert insights, the newly created research practice of American Express Business Travel’s Global Advisory Services.
By Bev Fearis
