A new forecast predicts a possible decrease in 2009 airplane and hotel rates as global travel slows next year, putting pressure on both suppliers and buyers of travel services.
The annual Global Business Travel Forecast and Trends report from American Express Co. (AXP) anticipates the average domestic trip costing 2.8% more than in 2008, with the increase 4.3% for international travel.
Economy-class fares in 2009 are seen falling as much as 1% and rising up to 5% , with business-class fares seen rising 2% to 7%. Hotel prices are projected to range from down 1% to up 6% for mid-range properties and fall 2% to rise 5% for upper-range ones.
But despite the potential for falling fares at a time of slumping fuel costs, flying likely won’t cost less for passengers as airlines continue to pile on added fees, noted American Express Business Travel executive Herve Sedky.
Roughly flat hotel prices will come amid a likely decrease in occupancy rates and continued opening of new properties, giving travelers some added bargaining power.
The report also notes how companies have been looking to trim travel costs, from having more shorter events in more local cities to increased teleconferencing. That is having further pressure on travel-service providers.
A report by The Mole
