Airfares, car rental and luxury hotels for business travel purposes will all become more expensive in 2006.
According to research from American Express Business Travel, business class airfares and car rental prices will both rise by eight per cent in 2006, while hotel accommodation will increase by five per cent.
Some analysts are attributing these rising costs to a resurgent demand for business travel, which had been dormant after the September 11 attacks, and higher fuel prices.
Director of sales and marketing at Smith Travel Research, Duane Vinson, told USA Today: “Most of the economic indicators are pretty good. With an improving economy, there’s going to be more business travel.”
Higher expenses for business travel could result in many companies looking for alternative methods of travel, like traveling by car or buying seats in coach instead of business class.