Business travellers can expect to pay considerably more for hotel rooms and airfares next year as demand pushes up prices, predicts American Express Business Travel.
The UK is forecast to lead the rises in Europe. UK hotel prices are set to rise by 2%-4% in the mid-market and by 3-5% at the top end.
“Yesterday’s good rate may well be unobtainable tomorrow – leading to unpredictable hotel costs and, occasionally, an inability to obtain a suitable room,” said Matthew Davis, director of global consulting at American Express.
“Unless a company locks in a negotiated rate with ‘last room availability’, prices will likely rise in proportion to occupancy levels in a given city.”
Growing occupancy levels could see London prices soar by as much as 10%-15%, he added.
However, the report expects to see the steepest rise in hotel prices among top-tier properties in the Japan, Australasia and Asia-Pacific region, where costs are predicted to soar by 8%-9%.
The UK is also likely to see the biggest hike in air fares. Short-haul prices are expected to rise by 3%-5% and long-haul costs by 5%-7%.
By Angela Frewin
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