Domestic airfares for American Express Business Travel clients edged higher during the third quarter, while international airfares grew by double-digit percentages. The company today also said international hotel rates were higher even as domestic hotel and car rental rates moderated, based on data from its most recent Business Travel Monitor.
Citing increased global travel, reduced air and hotel inventory, and high oil prices, Amex Business Travel North America senior vice president and general manager Andy McGraw said, "Looking to 2006, expense containment and strategic travel program management, from an investment and policy compliance standpoint, will be critical for corporate travel buyers and managers alike."
According to Amex data, the average fare paid for business travel—first class, unrestricted and discounted airfares across 329 domestic city pairs—rose during the third quarter to $219, up 1 percent both year over year and from the previous quarter
(BTN, Sept. 19). Though it remained below previous years' levels, average fare paid has continued to increase throughout 2005.
International fares rose more quickly. The average fare paid across 160 international city pairs jumped 10 percent year over year to $1,633. Premium-class fares rose 5 percent. Compared with this year's second quarter, average international fares were up between 1 percent and 3 percent.
American Express also said average booked hotel rates increased over last year. Domestic rates gained $1 to $131, while international rates grew from $204 to $217. All-inclusive daily car rental charges rose 1 percent to $66.