American Express Business Travel Expects Rise in Number of Meetings Held in 2010
September 30, 2009
By Andrea Doyle
Following weakened demand this year, American Express Business Travel expects a pent up need for travel and meetings to be unleashed in 2010. This increased demand will likely cause rates to slightly increase in most travel categories by the end of 2010, according to the American Express Global Business Travel Forecast released today.
The Forecast also reports companies will have more formal oversight of their meeting planning and meetings spending in 2010. In addition, companies are expected to loosen purse strings on events and conferences, with potential in-roads made by travel category managers adopting strategic meetings management programs.
The Forecast was produced by eXpert insights, the newly created research practice of American Express Business Travel's Global Advisory Services.
Utilizing telepresence and teleconference technologies, the 2010 Forecast was presented during a virtual press event connecting people face-to-face from New York, NY; Brighton, UK; and Mexico City, MX, demonstrating the virtual meeting options to be available through American Express Business Travel's virtual meetings eXpert solution.
"Considering airfare, hotel, and ground transportation, we expect the average domestic business trip to increase 1.2 percent, or $13 USD, to a total of approximately $1,080 USD," says Hervé Sedky, vice president and general manager, American Express Business Travel. "An increase of 2.4 percent, or approximately $67 USD, is expected for international business trips to bring the average cost to $2,818.
However, as unbundled and ancillary fees continue to add to the cost of trips, businesses should expect to add up to an estimated 15 percent to the total trip cost for air, hotel, and ground transport elements alone."
Overall, business travel growth is predicted to be up one percent for the U.S. and 15 percent for Canada in 2010. Route and capacity reductions made in the region in an effort to equalize the decrease in demand in 2009 are expected to force prices up in North America in 2010, higher than most other regions.
Hotel rates are expected to remain on the decline in North America as a whole as hoteliers fight to attract both business and consumer travelers back. Car rental rates will likely increase slightly as the cost of vehicles is expected to rise following decreases in capacity in 2009 and car manufacturing consolidation driving up the cost of replacing relatively old fleets.
The Global Business Travel Forecast 2010 is available for purchase for $495 per individual user for existing American Express clients and $995 per individual user for non-clients. It is also included in the annual subscription to eXpert insights research series. The introductory pricing for access to eXpert insights more than 35 managed travel industry advisory publications and benchmarks are offered at $1,500 per subscriber through the end of 2009. To obtain a copy of the Forecast or subscribe to eXpert insights, please e-mail advisoryservices@aexp.com or visit www.businesstravelconneXion.com.
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