According to the 2010 American Express Business Travel forecast released today, airfares will go up around the globe next year as airlines pare their schedules and demand revives, but average hotel rates should fall in most regions.
American Express Business Travel said overall ticket prices will increase by up to 5 percent globally for economy class short-haul flights. Business class long-haul fares are projected to increase by 1 to 6 percent. In North America, ticket prices are expected to rise between 2 and 7 percent in economy class and 1 to 6 percent in business class.
But while most passengers will be paying more for airfare, the forecast said hotels will be forced to cut rates further as they try to draw more customers back. In North America, mid-range rates are expected to fall by 1 to 4 percent. Upper-range hotel prices in North America are projected to decline by 3 to 6 percent.
The 2010 Forecast is based on a number of sources, including the American Express Business Travel Monitor, the American Express contracted rates database, transaction reports, Smith Travel Research Global Hotel Reviews and NBTA-IHS Global Insights business travel market sizing research.
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