Upcoming Trends in Business Travel Expenses
The global economy constantly affects the world of corporate travel. New trends and challenges will be occurring in every sector of business travel in 2019. Therefore, it’s wise best to be informed on what’s happening with the airlines, hotels, and on the ground.
Business travelers should expect to see a spike in flight and hotel prices in 2019. According to the Global Travel Association forecast, flight prices are expected to rise 2.6 % and hotel prices 3.7 %. These trends are based on the global economy and key markets, as well as new technology. Knowing these trends extensively will help business travel agencies assist you in booking your trip.
Upcoming Price Increases
Flight prices are expected to spike due to increasing fuel and oil prices:
- Prices in North America will only rise about 1.8 percent.
- Parts of Latin America are expected to decrease around 2 percent. However, Chile is expected to experience a 7.5 percent spike.
- Countries in Asia may see a 3.2 percent increase, especially since Chinese travel and tourism has become a hot commodity.
Hotel prices are expected to increase mainly because the demand has also increased:
- Hotel prices are projected to spike around 2.1 overall percent in North America. This includes a 5 percent increase in Canada and a 2.7 percent in the United States.
- However, Latin America will see a 1.3 percent decrease in hotel prices, especially in Brazil, Venezuela, and Argentina. Rates will fluctuate overseas as well.
- Parts of Western Europe will see as high as a 5.6 percent increase in hotel prices while decreasing in parts of Eastern Europe, Africa, and Middle Asia.
New Ways of Ground Transportation
The price of ground transportation and rental cars will not spike as much as flights and hotel prices but some countries like Canada, France, Italy, and Germany could see up to a 4 percent increase by 2019. Some travelers prefer hailing ride-sharing vehicles or even using electric cars versus fuel-operated ones to save some money. However, some business travelers prefer to be in control of where they are driving and business travel services can hook you up with the best rates and help you book the rest of your itinerary.
New Technology Apps
Many hotels are now offering their customers apps to help with online booking. In addition, ride-hailing apps have become trendy, instead of worrying about renting a car once you land at the airport. Yet, these new apps are not for everyone. Many business travelers prefer to use experienced corporate travel agents instead, who can provide you with the best worldwide deals to hotels, airfare, and rental cars.
If all of these new trends seem overwhelming and expensive to you, consider implementing travel expense policy guidelines so that everyone understands the guidelines and feels like part of the process. If you need further assistance, contact a company that specializes in corporate expense management solutions. They can teach how to help your business make productive choices and analyze employee spending on business trips.
