business travel

American Express Business Travel Announces 2010 Global Business Travel Forecast-- Increases Expected in Airfares, Notably in Business Class; Hotel Rates Likelyto Decline Globally with Asia Pacific as the Exception ---- Companies Changing Mindset in "New Normal" of Business Travel; Telepresence Supporting New ROI of Business Travel Behavior --NEW YORK & MEXICO CITY & LONDON--(Business Wire)--According to the American Express Global Business Travel Forecast releasedtoday, pent up trip demand coupled with supply base changes are likely to causerates to slightly increase in most travel categories by the end of 2010.Business class airfares in particular are expected to increase in line withreduced capacity and on-going business demand for international travel. TheForecast was produced by expert insights, the newly created research practice ofAmerican Express Business Travel’s Global Advisory Services.Utilizing telepresence and teleconference technologies, the 2010 Forecast waspresented during a virtual press event connecting people face-to-face from NewYork, NY, Brighton, UK and Mexico City, MX, demonstrating the virtual meetingoptions to be available through American Express Business Travel`s virtualmeetings eXpert solution. The existence of these travel alternatives and changesin business policies underscores the new emphasis on measuring the return oninvestment in business connections and shifted focus on getting more trips outof the same budget."As the world begins to show signs of emerging from the recession, businessesare adapting to a fundamental shift in thinking focused on proving the value oftravel and every employee connection," said Hervé Sedky, vice president andgeneral manager, American Express Business Travel. "Heading into 2010, companieswill need to consider the impact of these changes in mindset, particularly asprojected rate increases in key travel categories gain momentum."Global Business Travel ForecastA prolonged period of weak demand in the travel industry depressed prices acrosstravel categories in 2009, most notably in hotel, which as an industry can notreduce capacity as well as airlines and car rental companies. Following thisweakened demand in 2009, American Express Business Travel expects a pent up needfor travel and meetings to be unleashed in 2010. Fuel prices, along withsustained signs of a restarting economy, could also generate slight up-ticks intravel category prices worldwide, particularly in Asia Pacific.Global - 2010 ForecastRegion Airfares HotelRatesDomestic/Short-Haul International/ Long-Haul Mid-Range Upper-Range(Economy Class) (Business Class)North America 2% to 7% 1% to 6% (-4%) to (-1%) (-6)% to (-3%)Europe 0% to 2% 5% to 7% (-2%) to 2.5% (-2.5%) to 2%Latin America (-3)% to 2% (-1)% to 2% (-2)% to 2% (-6)% to 0%Asia-Pacific 3% to 8% 1% to 6% 1% to 6% 1% to 6%Global 0% to 5% 1% to 6% (-3%) to 2% (-4%) to 1%"Considering airfare, hotel, and ground transportation, we expect the averagedomestic business trip to increase 1.2 percent, or $13 USD, to a total ofapproximately $1,080 USD," continued Sedky. "An increase of 2.4 percent, orapproximately $67 USD, is expected for international business trips to bring theaverage cost to $2,818. However, as unbundled and ancillary fees continue to addto the cost of trips, businesses should expect to add up to an estimated 15% tothe total trip cost for air, hotel, and ground transport elements alone."Regional HighlightsNorth America - Air/Hotel/Car Forecast and TrendsOverall, business travel growth is predicted to be up one percent for the U.S.and 15 percent for Canada in 2010. Route and capacity reductions made in theregion in an effort to equalize the decrease in demand in 2009 are expected toforce prices up in North America in 2010, higher than most other regions.Hotel rates are expected to remain on the decline in North America as a whole ashoteliers fight to attract both business and consumer travelers back. Car rentalrates will likely increase slightly as the cost of vehicles is expected to risefollowing decreases in capacity in 2009 and car manufacturing consolidationdriving up the cost of replacing relatively old fleets.North America - 2010 ForecastRegion Airfares Hotel Rates Car RentalDomestic/ International/ Mid-Range Upper-RangeShort-Haul Long-Haul(Economy (Business Class)Class)United States 2% to 7% 3% to 8% (-4)% to (-1)% (-6)% to (-3)% (-1% to 2%)Canada 2% to 6% 0% to 5% (-3)% to (-1)% (-4)% to (-2)% (-1% to 2%)North America 2% to 7% 1% to 6% (-4%) to (-1%) (-6%) to (-3%) (-1%) to 2%Europe - Air/Hotel/Car Forecast and TrendsAs companies looked for ways to curb travel costs, many companies in Europetraded down from traditional airlines to low cost carriers in 2009. Overallairlines in Europe saw declines in volume and while demand is expected to growin 2010, fares are expected to decline in the first half of the year as airlinescompete for market-share.While hotel rate changes will likely vary by country, overall, it is expectedthat rates will only increase modestly at best in Europe in 2010. Opposite thetrend in the U.S. to unbundle services however, European hotels are givingtravelers additional amenities as a means to attract their business and loyaltyand retain price levels.Europe - 2010 ForecastRegion Airfares Hotel Rates Car RentalDomestic/ International/ Mid-Range Upper-RangeShort-Haul Long-Haul(Economy Class) (Business Class)France 0% to 2% 4% to 6% 0% to 3% 0% to 3% (-4%) to 0%Germany 0% to 2% 6% to 8% (-0.5%) to 3% (-0.5%) to 3% (-4%) to 0%Sweden 1% to 3% 7% to 9% (-1%) to 4% (-2%) to 2% (-4%) to 0%UK 0% to 2% 5% to 7% (-3%) to 4% (-4%) to 2.5% (-4%) to 0%Europe 0% to 2% 5% to 7% (-2%) to 2.5% (-2.5%) to 2% (-4%) to 0%Latin America - Air/Hotel Forecast and TrendsIn Latin America there has been upward pressure on rates as some carriersproactively reduced the number and size of aircrafts servicing some routes andconsolidated others. Increases that may have been possible through thesemeasures are challenged, though, as capacity at alternative, less expensiveairports increased, online travel agencies entered the market, and businesstravelers increased usage of car rental or bus. This will likely continue tohave an impact in 2010, with projected airfare changes ranging from negativethree percent up to two percent. Hotel rates are expected to continue todecline, similar to North America, should hotels have a more difficult timemanaging capacity.Latin America - 2010 ForecastRegion Airfares Hotel RatesDomestic/Short-Haul International/Long-Haul Mid-Range Upper-Range(Economy Class) (Business Class)Argentina 3% to 8% (0%) to 2% (-4%) to (-2%) (-7%) to (-2%)Brazil (-3%) to 1% (-1%) to 2% 0% to 2% (-2%) to 0%Chile (-1%) to 3% (-1%) to 3% (-3%) to (-1%) (-4%) to (-1%)Mexico (-3%) to 0% (-2%) to 1% 0% to 2% (-6%) to 0%Latin America (-3%) to 2% (-1%) to 2% (-2%) to 2% (-6%) to 0%Asia Pacific - Air/Hotel Forecast and TrendsAfter a seven percent reduction in business travel in 2009 in the Asia Pacificregion, growth for the major countries serviced by American Express in theregion is expected to be six percent in 2010 overall as much of the regionescapes the protracted recession in North American and Europe.Asia-Pacific - 2010 ForecastRegion Airfares Hotel RatesDomestic/ International/ Mid-Range Upper-RangeShort-Haul Long-Haul(Economy Class) (BusinessClass)Australia 1% to 6% 2% to 7% 1% to 6% 0% to 5%China 3% to 8% 2% to 7% 1% to 6% 1% to 6%Hong Kong 2% to 7% 2% to 7% 0% to 5% 0% to 5%India 3% to 8% 1% to 6% 1% to 6% 1% to 6%Japan 3% to 8% 2% to 7% 1% to 6% 1% to 6%Singapore 3% to 8% 1% to 6% 1% to 6% (-1%) to 4%Asia Pacific 3% to 8% 1% to 6% 1% to 6% 1% to 6%"The 2010 Forecast clearly underscores that the complexity of managing businesstravel and understanding the underlying dynamics of the industry and supply baseonly becomes more challenging as economic conditions change and businessopportunity is global," said Christa Degnan Manning, director, eXpert insightsresearch for American Express Business Travel Global Advisory Services. "Overthe next year we will be monitoring the market closely with pricing benchmarksidentifying cost-savings best practices, and supplying on-going market analysisto support companies in paying the optimal price for travel based on marketconditions and desired business outcomes. A return on investment approach intravel is more important now than ever before as the economic situation changes worldwide."Adoption of Strategic Meetings ManagementThe Forecast reports companies will have more formal oversight of their meetingplanning and meetings spending in 2010. In addition, companies are expected toloosen purse-strings on events and conferences, with potential in-roads made bytravel category managers adopting strategic meetings management programs. Thestrategic alliance, Maxvantage, between American Express Business Travel andMaritz Travel, was created this year to help assist companies with the adoptionprocess and to get them on track for a successful SMMP through centralizedsourcing, meeting planning, data analysis and business insight."Tapping into Maxvantage can give companies a leg up in adopting a successfulSMMP by providing direct access to capabilities and best practices that willdrive savings while not sacrificing quality," said Hervé Sedky, vice presidentand general manager of Global Advisory Services, American Express BusinessTravel. "Looking at the larger picture, this also enhances a company`s level of transparency, control and insight across the entire category of meetings, whichis something everyone in the business travel industry is being called upon to do right now."The Global Business Travel Forecast 2010 is available for purchase for $495 per individual user for existing American Express clients and $995 per individualuser for non-clients. It is also included in the annual subscription to eXpert insights research series. The introductory pricing for access to eXpert insights more than 35 managed travel industry advisory publications and benchmarks are offered at $1,500 per subscriber through the end of 2009. To obtain a copy ofthe Forecast or subscribe to eXpert insights, please emailadvisoryservices@ or visit .Forecast MethodologyThe 2010 Forecast is based on a number of primary data sources, including the American Express Business Travel Monitor, the American Express contracted rates database, aggregate transaction reports, Smith Travel Research (STR) Global Hotel Reviews, and for the first time this year, NBTA-IHS Global Insights business travel market sizing research. Projections were based on a combinationof these primary sources and interviews with American Express category and regional experts. NBTA-IHS Global Insights and STR data is used with permission.Although the forecasts and projections provided in the report are based on information gathered from internal and external sources that American Express Business Travel believes to be reliable, no representation or warranty is madeas to the accuracy of the forecasts or projections made herein. In addition,actual changes in business travel costs could vary significantly from forecasted data, particularly as a result of unforeseen future political, economic and/or environmental events.All ranges represent forecasted year-over-year increases.About American Express Business TravelAmerican Express Business Travel (/businesstravel), a division of American Express Company, is committed to helping its clients maximize the greatest return on their travel investment through increased cost savings, world-class customer service and greater spending control. With clients ranging from small businesses to multinational corporations, American Express Business Travel provides a combination of industry-leading technology, travel management consulting, strategic sourcing and supplier negotiation support,alongside global customer service available online and offline. The Company also provides a dynamic online community () harnessing the collective intelligence of those in the business travel industry offering avariety of perspectives, best practices, current research and industry news.American Express operates one of the world`s largest travel agency networks with locations in over 140 countries worldwide. Total travel sales volume in 2008 was $29.1 billion, including proprietary volume, volume processed through joint ventures, and American Express branded volume processed through its partner network.American Express Company () is a leading global payments, network and travel company founded in 1850.For American ExpressTracy Paurowski, 212-640-8409tracy.j.paurowski@orKristine Nalbone, 212-446-1897knalbone@Copyright Business Wire 2009。