Corporate Travel Management
Corporate Travel Buyers Bracing for Price Hikes
by Michael J. ShapiroFebruary 20, 2013
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Travel buyers expect domestic airfares to rise by 4.6 percent and international fares to shoot up by 8.3 percent in the coming year, according to research conducted by the Global Business Travel Association. The GBTA Foundation's report, 2013 Industry Pulse: Business Travel Buyers' Sentiment, surveyed 297 U.S.-based travel buyers in October 2012. The average projected business-travel ticket prices for 2013 are $492 for domestic economy and $1,318 for international economy. Premium fares, meanwhile, are expected to jump by 7.6 percent for both domestic and international routes. Similarly, buyers expect hotel rates to rise — by 3.7 percent domestically (to an average of $161) and by 8.0 percent internationally (to $297). "Travel prices will be rising across the board, with international price growth especially robust as companies look abroad for opportunities," noted Joseph Bates, GBTA vice president of research. The expected price increases will present significant challenges to travel buyers, who expect only a 2.9 percent increase in their budgets.