Business travel costs around the world are expected to see a big surge in 2008 with air fares pushed up by rising fuel prices and hotels rates squeezed by growing demands, a survey shows today.
The American Express Global Business Travel Forecast said hotel rates are especially pressured in major cities around the world because new construction has failed to keep pace with demand.
Some regions are facing unusually high demands including cities in India where hotel rates are likely to rise as much as 40%; the 2008 Summer Olympics is expected to be a factor in pushing up lodging costs in China, the report added.
For US companies surveyed, the average cost of a domestic trip is expected to rise 6% and 6.9% for an international trip.
The report said that said some relief in air-travel costs may come from the US-European Union 'open skies' agreement that will increase flights, but that this may not be enough to lower transatlantic fares overall.
Globally, the report said air fares would rise one to 4% for travel within a particular country or region and 5-8% for international flights.
Hotel prices globally were expected to rise 11 to 14%, with some locations such as New York, London and cities in India seeing bigger hikes.
