Companies expect to pay more for Airfares and Hotel rooms next year

"Companies are attuned to the importance of travel and boosting their budgets in the face of higher rates so they can keep their people on the road. Critically, travel buyers recognize that as rates climb, the best defense is a good offense. Buyers are working to identify savings and protect their budgets through strong travel policies and strategic negotiations with suppliers heading into 2012." said Jim McMullan, GBTA president and CEO.

Highlights from the GBTA Annual Industry Pulse Report include:

• With the exception of domestic car rentals, buyers expect average airfares and hotel rates in North America to rise between 3% and 5% in 2012. Buyers expect average rates/fares to rise between 4% and 6% in Asia Pacific.

• Buyers expect domestic airfares to increase the most in 2012:

o North America – 5% projected increase to average fare of $487

o APAC – 5.3% projected increase to average fare of $412

• Buyers also expect fares to rise in other airfare categories:
• International economy – N.A: 4.4% to $1,193; APAC: 5.1% to $1,146
• International business class – N.A.: 3.9% to $4,929; APAC: 4.6% to $3,535

• Projected increases for domestic hotels (N.A: 4.1% to $165; APAC: 4.9% to $181) and international hotels (N.A: 3.3% to $262; APAC: 4.4% to $618) are not far behind.

Ready or not, prices are going to soar, however can the economy keep up?