Companies have been told to anticipate a slight rise in business travel costs over the next year.
Analysts at American Express are predicting increases in air, hotel and ground transport costs in 2014, although these rates are only expected to lift by single digits.
Cited by conference-news.co.uk, the company’s annual Global Business Travel Forecast says air fares and accommodation could even end up falling in some countries, with the UK better positioned than most to score discounts.
Short-haul business class fares have been tipped to rise by no more than two per cent and there’s potential for a fall of one per cent. Long-haul fares are expected to remain static or rise by three per cent, with short-haul economy seats set to either freeze or rise by two per cent.
Amex’s director of Global Business Consulting, Sebastien Marchon told buyingbusinesstravel.com the UK’s finance sector was underpinning demand and helping it bypass the challenges that some European nations are seeing.
However, due to the possibility of a rise in rates, UK companies may look closer to home when deciding where their representatives should be deployed.
Amex added that despite global economic growth, the improved financial outlook would not impact the demand for business travel.