A recent article in Successful Meeting shared a positive outlook. In encouraging news for 2011, American Express Business Travel released good news in its annual Global Business Travel Forecast. According to the results of the forecast, companies will hold an increased number of meetings next year and overall will spend more money on them. However, it is predicted that companies will spend less per-meeting as meeting sizes decrease and sourcing efficiencies increase.
American Express also predicts that planners will hold more local and regional meetings and will include more virtual alternatives to face-to-face gatherings.
Another projection lies in business travel prices. We can expect that airfare and hotel rates will rise up to as much as 10% in the next year, in key global markets. They specifically forecast domestic economy class airfares will rise 2% to 6% while hotel rates will rise 1%. "Throughout 2010, companies have lifted travel restrictions brought on by red bottom line fears and this is expected to continue into 2011 as firms look more toward growing the top line," said Christa Degnan Manning, director of eXpert insights and research, American Express Business Travel. "Yet pricing power will swing back to air and hotel suppliers for the first time in two years in 2011 as more competition for limited seats on planes and increased occupancy levels at hotels are expected."
With the increased demand and constrained capacity, airfare and hotel rates are expected to reach pre-recession levels next year, according to American Express.
For more information, including complete forecast data, visit www.businesstravelconnexion.com.
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