Corporate travel buyers should expect a 6 percent to 8 percent overall increase in published travel costs, according to the National Business Travel Association's 2008 U.S. Business Travel Overview & Cost Forecast report released today.
The report, which primarily uses survey results from 215 NBTA member buyers, shows expectations for published airfare increases in 2008 of between 6 percent and 10 percent. The survey found that 73 percent of respondents expect airfares to increase between 5 percent and 10 percent, and 10 percent of buyers expect prices to be flat.
NBTA's study forecasts published hotel rate increases of 5 percent to 7 percent and the same increase for published domestic car rental rates—however, nearly half of respondents anticipate 1 percent to 5 percent increases in corporate car rental rates next year, and an average corporate base rate of $42.
In addition, NBTA derived food costs associated with T&E using BTN's Corporate Travel Index from 2004 to 2007
(BTN, Feb. 19). NBTA projected such costs to rise 7 percent to 9 percent from last year's average of $74.06 per day.
In the face of the price increases, buyers plan to tighten their policies. According to the survey, 8 percent are reducing nonessential travel and a similar amount plan to do so in 2008. Additionally, 16 percent of respondents will restrict business class travel, a jump from 7 percent in 2007.
Other policy-related findings include a doubling in the number of respondents who plan to request bids for new travel management company contracts to 16 percent. More than 77 percent of respondents have implemented an online booking tool. Among them, there is a 36 percent increase in mandating their use.