Business Class Airfare, Hotel Prices Expected to Increase in 2016

Business travelers can expect to pay more in 2016, as demand for business travel expected to increase.

Those traveling for business can expect to pay more when they travel in the next year, fueled by a strengthening economy and increased demand for business travel. American Express Global Business Travel is calling for an overall increase in travel expenses in 2016, published in their annual forecast.

According to the analysis, travelers can expect to pay more for business class fares in most regions of the world. Short-haul business class is expected to rise up to over two percent, while long-haul business class rates could rise nearly three percent. Business class fares across the Asia-Pacific could also raise by three percent, while fares in Europe, the Middle East, and Africa could rise up to five percent.

In addition to the projected price hikes for airfare, hotel fares are set to increase as well. In North America, hotel prices are expected to increase by six percent, while all other regions around the world are expected to increase by between three and four percent.

Although travelers are expected to pay more for airfare and hotels, other shared sources are expected to grow for business travel. Ride-sharing services and mobile booking are projected to increase, creating more competitive options for business flyers and travel managers.

“In addition to handling tasks such as measurement and compliance, new factors such as the sharing economy and mobile booking channels are becoming increasingly popular for business travelers,” Caroline Strachan, vice president for consulting at American Express Global Business Travel said in the report. “In order to thrive in this digital era, travel managers need to be aware of and dynamically adapt to these forces across a variety of geographies.”

The analysis was completed through research from a number of travel authorities, including the Center for Asia Pacific Aviation and Smith Travel Research. The annual report considers over 1,800 predictions which include airfare, hotel rates and car rates around the world.

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