2010 Business Travel Forecast Good News: Decline In Hotel Prices

Yes!  Hotel prices are predicted to decline by 2%-3% in 2010.

You thought there was only good news didn’t you.  Sorry.

Here’s the bad news:  airlines will be able to raise ticket prices by 2% to 8% in 2010.  And, even though hotel costs should go down, the overall cost of a domestic business trip is forecasted to increase by 1.2% in 2010.  Bummer.

Says who?  American Express Business Travel, that’s who.

American Express Business Travel recently released it’s annual Global Business Travel Forecast.  They have an excellent pulse on business travel costs due to their position as one of the world’s largest travel agencies.

Some other nuggets of information from the AMEX forecast:

  • There’s a pent-up demand for face-to-face business meetings, but any improvement in the amount of 2010 business travel is expected to be small.
  • Companies are expected to start to loosen purse strings for events and conferences.  But, those events must show a positive ROI.
  • Businesses are investing in alternatives to travel because of the recession.

“People are looking at video conferencing, they’re looking at social media — different ways for people to connect with each other and be productive,” said Frank Schnur, vice president for American Express Global Advisory Services.  Still, he said, “It’s critical for people to get back on the road, and we see that pent-up demand with our clients.”

Does your business plan to increase or decrease travel in 2010?  Please comment!

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