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Business Travel Expenses Rise in 2008

American Express Business Travel recently announced its forecast for pricing in 2008. This forecast could be bad news, especially for those who did not factor adequate increases into next year’s marketing budget. According to American Express, all costs associated with travel—air, hotel, and car rentals—will continue to increase, and in some areas substantially.

These increases will directly impact the bottom line of your meetings.

According to their findings…

US air fares will spike by 1% to 5% and international airfares up to 7%. On the hotel side, on average, sleeping room rates will jump 4-7% in mid-range hotels, 5 to 9% in upper-range, and 10-14% in major US markets. International markets will also increase. Asia alone is expected to see increases of up to 22%.

There is no need to despair though—you don’t have to lower the quality of your meeting to keep costs down. However, it does mean that it is more important than ever to review your current policies and systems to limit the overall financial impact on your meetings. Actions that can be taken to minimize this impact include leveraging your spending and streamlining your processes. For instance, if you compile a historical data report identifying all travel and meeting spend annually and share this data with hotels and vendors, you will be able to negotiate more favorable terms and add-ons saving money.

If you are interested in learning more, either post a comment or contact us. We’ve got proven strategies to help you make the most of your meetings and your budget.