Despite a series of fragile economies, costs are expected to rise mostly as a result of classic supply and demand: More businesses are likely to send employees on the road while air carriers, in particular, keep availability restricted.
Report highlights:
Europe, Middle East and Africa airfare and hotels
Increases are expected to be modest on airfares, but long-haul business will see the biggest leap as "European business people go abroad to Asia and Latin America to capitalize on growth opportunities in emerging markets." Hotel rates are likely to see moderate increases also, but countries in economic turmoil, such as Spain and Greece, could be better values.
Latin American airfare and hotels
Strong Latin American economies and increasing consolidation among airlines likely will boost costs — between 3 and 6 percent for economy seats and 5 to 9 percent in business class.
Hotels will be impacted similarly, with "moderate" increases among mid- and upper-tier locations. Business hubs will be particularly affected.
Asia-Pacific
This region is the jewel of business travel at the moment and a "relative bright spot in an otherwise uncertain economic picture." Asia is "expected to lead in business travel demand." Airfare is expected to increase significantly, with leaps as high as 10 percent on long-haul business routes.
More travelers also will mean higher hotel rates. But some cities, such as Shanghai, have enough capacity to offer cheaper rates than elsewhere in the region.
November 01, 2011 - Tribune Newspapers excerpt
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