Business travel will drive rate increases for travel industry

Online marketers may want to pay more attention to the business traveler in 2008. According to the recent Global Business Travel Forecast from American Express, business travel needs will surpass the supply, driving rate increases in all sectors.

by Kristina Knight

The forecast estimates that the largest increase will be seen in hotel rates. That sector is expected to see double-digit rate increases after the new year across the United States, Asia and European destinations.

"In 2008, we expect a domestic trip inclusive of airfare, car rental and hotel stay will increase 6%, or $63, bringing the average trip cost to a total of approximately $1,110," said Mike Streit, vice-president and global leader for American Express Business Travel Advisory Services. "For an international trip, the increase is expected to be nearly 7%, or approximately $205, bringing the cost of an average trip to $3,171."

The cost of car rentals and airfare or trainfare will also increase, albeit at a slower rate, in the US.

Still, travel will not slow in the business sector, and more users will continue moving online to book their travel plans. According to the report 51% of business travelers will book trips online for simple trips. More in-depth or multi-city trips are still being booked through travel agencies.