BUSINESS TRAVEL DEMAND WILL OUTPACE CAPACITY IN 2008 AND DRIVE RATE INCREASES ACROSS AIR, HOTEL, CAR RENTAL AND MEETINGS
U.S. Rates Expected to Increase at a Slower Pace While Demand-Heavy Markets Incline Sharply; Hotel Rates Rise Globally
NEW YORK, October 23, 2007 -- The American Express annual Global Business Travel Forecast released today reports that demand for business travel services will again outweigh supply in 2008, driving continued increases in rates across air, hotel, car rental and corporate meetings and events. While worldwide airfares are expected to continue their climb, hotel rates are projected to experience high double-digit increases in demand-heavy markets across the U.S., Europe and Asia.
"Travel managers and procurement professionals can expect another capacity-restricted, challenging year and a continued push to keep travel and entertainment budgets in check. However, opportunities still exist to further control costs without curtailing business travel," said Mike Streit, Vice President and Global Leader for American Express Business Travel Advisory Services. "Heading into 2008, successful T&E management strategies will focus not just on controlling travel expenses, but also on identifying additional areas to control costs and save, such as entertainment and related services including corporate meetings and events."
Click here to view the full Global Business Travel Forecast press release.
Forecast Methodology
Projections were based on a combination of statistical forecasting, in-depth research of supplier markets, regional economic trends, interviews with American Express industry analysts, and analyses of reports generated within and outside American Express. Smith Travel Research was also utilized for hotel research into specific markets and trends.
The forecasts and projections provided in the report are based on information gathered from a number of different internal and external sources and no representation or warranty is made as 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
American Express Business Travel, a division of the American Express Company, is dedicated to helping its clients realize the greatest possible value from their investment in travel through increased cost savings, outstanding customer service and greater spend control. For small businesses, medium-sized enterprises and multinational corporations, American Express Business Travel provides a combination of industry leading booking technology, travel management consulting expertise, strategic sourcing and supplier negotiation support and customer service available online and offline, around the world.
American Express operates one of the world's largest travel agency networks with over 2,200 travel service locations in over 140 countries and territories worldwide. The Company processed US$21.8 billion in global travel sales in 2006.
American Express Company (www.americanexpress.com) is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travellers Cheques, travel, business services and international banking.
Contacts:
Tracy Paurowski
212.640.8409
Tracy.J.Paurowski@aexp.com