As companies begin to set travel budgets for 2009, buyers expect the cost of airfares to rise dramatically, though a softening hotel market and competitive rental car rates could help offset the severity of overall expense increases.
Many corporations and travel management companies said they still were in the midst of finalizing travel budgets for next year, and the early read is mixed—with increased, decreased and flattened budgets plotted proportionally, according to a Topaz International survey of 157 travel buyers, fielded for
Business Travel News. According to the Topaz poll results, 34 percent of respondents said their companies plan to take more trips next year, while 29 percent expect the same and 36 percent are predicting a decrease in volumes.
However, even companies planning fewer trips next year are accounting for growing travel costs—with 42 percent planning for budget increases.
BTN's 2009 Budget Planner has all the details. Click on the headlines below to read the full story.Corporate Buyers To Face Whopping 2009 Airfare HikesAverage airfares this year have done nothing but rise, and the industry consensus is that the trajectory will continue through the fall, winter and throughout 2009—leaving companies, even those expecting to take fewer business trips next year, to budget more for each air trip they will take.
Waning Seller's Market To Soften Increases In 2009 Hotel RatesFollowing several years of stiff rate increases and a tough negotiating climate, travel buyers this year should absorb much more moderate increases in average daily hotel rates. Most buyers facing travel budget cuts, however, will have to enact them through demand management, as hoteliers are unlikely to give up ground on the pricing gains they've accrued in the now-waning seller's market.
Competition To Keep Car Rental, Chauffeured Transportation Rate Hikes ModestCompetition in the rental car industry could work in buyers' favor, but some consultants still anticipate costs to increase moderately.