Business travel gets pricier in 2006
Business travel costs increased in 2006 after several years of flat or declining prices, according to a survey by American Express.
The financial firm's Business Travel Monitor showed an increase in prices for airline, hotel and car rental rates, largely due to strong demand and increased operating costs.
The most dramatic increases were seen in international airfares, and certain hotel categories, the report found.
US domestic airfares rose $15 to an average of $216 in 2006, ending four years of declines, the report said.
Meanwhile the average international airfare rose to $1,707, up 5.8 percent for the year and 12.8 percent over the past two years.
American Express said the increases came even as companies tried to better manage costs.
"In line with our predictions, capacity constraints, strong demand and high fuel costs prompted transient travel prices to climb in 2006," said Mike Streit, vice-president of American Express Business Travel Advisory Services.
"These employee change management efforts helped to soften the expense impact and keep executives on the road."
Airfares to Asia showed strong increases. Fares paid to this area increased 11 percent, the highest average increase in any region.
Costs for international hotel bookings were up 8.5 percent, or $18 from the previous year at $230.
Car rental costs are also on the way up: The average daily rate increased to $69 last year from $66 in 2005, reflecting higher auto prices.
AFP
(China Daily 03/28/2007 page16)
