The price of air travel is set to rise by as much as nine per cent in 2009 for European businesses, according to the Amex Global Business Travel Report.
The figure, though, is not nearly as bad for UK companies, for whom airfares are predicted to rise by only two per cent due to reduced competition and capacity.
Taking into account airfares, car rental and hotel stays, the average domestic trip for European companies is forecast to increase by two per cent to around 1,020 euros, while the figure for international trips is a rise of 4.8 per cent.
Joakim Johansson, vice president advisory services, American Express Business Travel EMEA, explained: “With costs rising, business leaders are recognising the need to balance travel and entertainment spending with the role travel plays as an essential revenue-generating function. In a difficult economic environment, successful travel and entertainment management strategies will be based upon the total cost of a business trip, which takes into consideration costs such as parking fees, airline fees, meals and other related expenses.
“Travel budgets will also need to be viewed as an investment in business growth. Effective measurement of the return on that investment will supplement the savings achieved by controlling travel expenses through comprehensive travel policies and increased policy compliance by business travellers.”
