Rates in most travel categories will rise slightly by the end of
next year because of pent-up trip demand and supply changes, with
particular improvement in business-class airfares, American Express
Co. (AXP) said Wednesday as it released its latest travel
forecast.
This year, weak demand for travel has pushed prices lower,
particularly in hotels, which can't cut capacity as easily as air
carriers or car-rental companies. But 2010 will see demand rebound
as an accumulated need to travel and go to meetings spills over,
according to the credit-card company's Global Business Travel
Forecast.
AmEx doesn't expect airfares to decrease anywhere in the world
next year except perhaps Latin America. Globally, it predicts as
much as a 5% fare increase for domestic flights and a 6% increase
for international.
Including airfare, hotels and ground transport, the average cost
of a domestic business trip will rise 1.2% to $1,080 and an
international trip will cost $2,818, 2.4% more, the forecast
said.
American Express said companies will have more formal oversight
of their meeting planning and spending and will loosen purse
strings on events and conferences. However, it expects that value
will be a prime focus in booking trips. In August, AmEx said
corporations were still reining in travel spending and frequency
last quarter, according to purchase information at its
business-travel division.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com