Price jumps for hotels and airfares will force business travel costs beyond prearranged budgets, but firms are unlikely to cut down on their overseas trips as a result.
This is according to a new report from the US-based Global Business Travel Association (GBTA), which claims that an increasing demand for travel, accommodation and meeting venues will force airlines and hotels to be less generous when it comes to discounts.
In the US for example, rates for air travel are expected to climb by 4.6 per cent across business and economy class, while hotels could raise their prices by 3.7 per cent. These predictions more than surpassed a total budget rise of 2.9 per cent pencilled in by travel buyers.
However, seeing as travelling to foreign countries is so imperative for businesses, it’s thought firms will allow the cost of travel to outstrip their prearranged budgets later on this year.
Talking to travel-news.co.uk, GBTA vice president of research Joseph Bates said travel buyers will be forced to balance higher costs in order to get company representatives around the globe.
He added: “Strategic travel management programs will play a key role for companies dealing with a tougher negotiating environment and focused on getting the most out of their travel spending.”
According to other readings from the report, shared by successfulmeetings.com, global travel pros are far more confident about the state of the economy than their chances of securing a good deal.
A total of 37 per cent said the economy is better than it was last year, 48 per cent say it’s stayed the same, while just 15 per cent believe it’s worse.