NBTA: Biz Travel Costs Forecast To Increase

The National Business Travel Association today released its 2003 business travel costs forecast, predicting costs will increase an average of 5 percent next year, with airfares, hotel rates and corporate car rental rates all expected to rise.

As airlines face a 10 percent decline in passenger traffic this year, business airfares are expected to make the largest jump of the key segments, increasing by 7 percent, according to NBTA. However, American Express' Trends and Forecasts Preview predicted airfares will increase by only 3 percent or 4 percent during the next year.

NBTA also predicted that rates will increase by 2 percent in the hotel market, an industry that was hurt this year by reduced occupancy rates. Last month Business Travel News reported that buyers expect room rates to remain flat or decrease next year.

After rebounding from low demand at the end of 2001, car rental firms this year faced the same grave economic conditions as did hotels and airlines. The association predicted a 2 percent increase in car rental rates, which largely have remained flat this year in line with demand.