The cost of business travel is expected to increase slightly next year, according to travel management company Egencia.
It suggested airfares to top destinations will rise only a little, if at all, but that hotel rates in Europe, North America and the Asia-Pacific are more likely to go up than down.
Car rental rates are expected to go up about 5% as car hire companies are not likely to grow their fleets in line with rising demand.
As corporate travel starts to creep back towards 2008 levels, companies will find it harder to negotiate lower rates, said Eugencia.
After a year of significant flexibility, Egencia’s Hotel Negotiability Index suggests that corporations will face a more challenging negotiating environment in 2011, said the report.
“Corporations are travelling again this year, though still below 2008 levels,” said Egencia president Rob Greyber.
“We expect the modest spending rebound to continue, but careful, policy-driven governance will still be a theme in 2011.”
Egencia UK managing director Jonny Shingles added: "Last year, travel reduction was a priority for many companies, with 59 percent of survey respondents acknowledging slight or significant reductions in travel in 2009, compared with 46 percent of respondents this year in Europe.
“Organisations have begun to reinvest in corporate travel but with a focus on strategies to maintain and control travel costs such as encouraging travellers to book in advance and rigorously enforcing policy.”
By Linsey McNeill
