American Express Global Business Travel has released first quarter figures on business travel pricing from its Business Travel Monitor showing the average prices business travelers are paying are higher when compared with 2011.
Among the Business Travel Monitor highlights from the first quarter, prices across all categories of service for trips originating in North America to domestic and international destinations increased compared to the first quarter of 2011, as companies continue to invest in travel and suppliers effectively manage capacity.
Average domestic airfares increased 6 percent in the first quarter of 2012 compared with 2011; average international airfares increased 4 percent; average domestic hotel rates increased 5 percent while average international hotel rates increased 1 percent in the first quarter.
“Prices rose in the first quarter as companies put travelers on the road to jumpstart 2012 business goals while supply remained relatively tight,” said Christa Degnan Manning, director, EXPERT INSIGHTS Research, American Express Global Business Travel. “To optimize travel budgets in this environment, companies should look at how they are encouraging compliance with corporate travel policies with positive motivators, instead of punishments for non-compliance."