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NBTA survey forecasts 2008 travel cost hike

October 22, 2007 |

Corporate travel buyers should expect a 6 percent to 8 percent overall increase in published travel costs, according to the National Business Travel Association's 2008 U.S. Business Travel Overview & Cost Forecast report.

The report, which primarily uses survey results from 215 NBTA member buyers, shows expectations for published airfare increases in 2008 of between 6 percent and 10 percent. The survey found that 73 percent of respondents expect airfares to increase between 5 percent and 10 percent, and 10 percent of buyers expect prices to be flat.

NBTA’s study forecasts published hotel rate increases of 5 percent to 7 percent and the same increase for published domestic car rental rates—however, nearly half of respondents anticipate 1 percent to 5 percent increases in corporate car rental rates next year, and an average corporate base rate of $42.

In the face of the price increases, buyers plan to tighten their policies. According to the survey, 8 percent are reducing nonessential travel and a similar amount plan to do so in 2008. Additionally, 16 percent of respondents will restrict business class travel, a jump from 7 percent in 2007.

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