Business is back—back to paying pre-recession levels for airfares, with hotel rates moving toward those price points as well, according to the latest American Express Global Business Travel Monitor report, released yesterday.

Trends in business travel often foretell what’s in store for leisure vacationers, now more so than ever, as road warriors are looking for the best bargains as well, as companies have cut down on a lot of the perks and extra expenses that used to be covered or reimbursed.


Highlights from the Q1 2011 Business Travel Monitor:

  • Average domestic airfares increased 10 percent in Q1 2011 vs. Q1 2010 to $247, surpassing the pre-recession average in Q1 2008, which was $233
  • Average international airfares increased 8 percent in Q1 2011 vs. Q1 2010 to $1,866
  • Average domestic hotel rates increased 3 percent in Q1 2011 vs. Q1 2010 to $150
  • Average international hotel rates increased 4 percent in Q1 2011 vs. Q1 2010 to $238

“Airfare increases have been expected given the rise in the cost of oil and the return in demand in business travel,” said Christa Degnan Manning, director of eXpert insights research, at American Express Global Business Travel. “On top of this, airlines are continuing to form alliances and joint ventures. As prices continue to increase and capacity levels remain tight, companies need to ensure they are following the market, reviewing travel spend and ensuring they are using suppliers and implementing policies that facilitate optimal cost savings opportunities.”

The U.S. cities with the highest hotel rate increases from Q1 2010 to Q1 2011 include:

  • San Francisco: up 16 percent from $178 to $206
  • Seattle: up 9 percent from $139 to $152
  • Austin: up 8 percent from $148 to $161
  • Omaha: up 8 percent from $134 to $145
  • New York: up 8 percent from $270 to $290

For more information, visit www.americanexpress/businesstravel.

Photo: Courtesy of Amex Business Travel

Related posts:
Business Travel Trends from the Amex/CFO Research Survey
7 Reasons Business Travel is Changing Before Your Eyes

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