Combination of pricing pressure on travel suppliers and demand
As airlines and hotels translate their rising expenses into pushing up prices for their own services, particularly as the current financial turmoil continues to bite, business travellers are likely to be the ones having to pay the difference. This is one of the findings of a new industry survey just released by American Express. In its “Global Business Travel Forecast”, the global card issuer predicts that a combination of demand and pricing pressure on travel suppliers will inevitably raise rates in 2012.
Airfares have already been rising. Hotel prices are also due to rise, although more slowly. Price increases will vary depending on location. Rates will rise slightly in Europe, the Middle East and Africa, though there may be decreases in Spain and Greece due to the financial turmoil. Business travel will get more expensive in Latin America and Asia.
[pictured: SAS Lounge, CPH; courtesy SAS Group]