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Business travel fares and rates approaching pre-recession levels: Amex

17-Dec-2010 11:08 AM

American Express Business Travel released (16-Dec-2010) data from the 3Q2010 Business Travel Monitor (BTM) North America, showing price increases are holding steady as business travel continues to rebound. Notably, data from the BTM reveals pricing power is shifting into the hands of suppliers as international and domestic airfares and domestic hotel rates increased in year-on-year in 3Q2010. With airlines exerting greater control over prices, business fares have increased by an average of 6% year-on-year for North American domestic airfare paid and a 8% for average international airfare paid. Highlights include:

  • Average domestic airfare paid:
    • 3Q2007: USD231
    • 3Q2008: USD253
    • 3Q2009: USD215
    • 3Q2010: USD228
  • Average international airfare paid:
    • 3Q2007: USD1,853
    • 3Q2008: USD2,010
    • 3Q2009: USD1,638
    • 3Q2010: USD1,781. [more]

American Express Business Travel: “During the past quarter we’ve witnessed a distinct shift from a buyers’ market to a suppliers’ market leading to higher prices across several travel categories including airfare and hotel rates. Airlines have been especially successful in constraining capacity and increasing fares to create more sustainable financial stability. This should prompt companies to revise travel cost-control tactics, identify new opportunities for travel return on investment, and ultimately change traveler behavior in response to the new increased price environment,” Christa Degnan Manning, Director, eXpert insights research, Global Advisory Services. Source: American Express Business Travel, 16-Dec-2010.