As we head into the 4th quarter, businesses are often working on their budgets for the new calendar year.  Our BCD partner has teamed up with Advito to create their 2009 Industry Forecast, which provides insight into what airfares, car rental and hotel rates are projected to be for the upcoming year.
 
The backdrop to the 2009 predictions is a slowing world economy, somewhat higher than predicted inflation rates, a volatile but slowly recovering U.S. dollar and a crude oil price fluctuating from US$110 to US$130 per barrel. The Forecast assumes that no major geopolitical incident or other adverse shock having a severe impact on corporate travel will occur.
 
The Forecast predicts that net airfares will rise by 6% to 8% but total cost of air travel will increase more, hotel rate increases will slow to 4% to 8%, car rental rates in the U.S. will increase by up to 4%, and Europe will notice a rail "renaissance" and meetings & groups will experience similar price increases. 
 
One area to particularly watch is the unbundling and additional fees from the airlines.  In a sample calculation the average U.S. domestic airfare is $465 which grows to $776 with additional fees including fuel surcharges, change fees, curbside check-in, checked baggage fees, preferred seat request, snacks, beverages and a pillow/blanket package.

Click here to read the full forecast and see the outlook for business travel for 2009.

Have you ever wondered what the average per diem cost is for a hotel room; car rental and three meals are for a typical U.S. business traveler?  According to the International Corporate Travel Index based on research for Advito Consulting and published in the Business Travel News, it was $310.81 in 2007. The breakdown is 48.6% for hotel, 23.8% for food and 27.6% for car rentals.  With New York City topping the list at an average of $569.89 and Akron ranked 100th at $219.78 there is a wide range depending on where your traveler visits.  
 
Click here for a full listing of the hotel costs, food costs and per diems in 100 international and 100 U.S. cities.

Are you looking to increase sales, boost morale, build customer loyalty or create new markets?  Studies show that incentive travel programs can do just that and they have a perceived higher value to the participant than a cash incentive.  With many people opting not to take a personal vacation this year, an incentive trip, which allows them to win this award, has taken on a new meaning.
 
We recognize that with the vast variety of destinations and accommodations available, it may be difficult to narrow down the choices for your next incentive trip program.  Our meetings and incentive department draws on experience and expertise to recommend destinations, resorts and ships that will inspire your participants to work hard, meet their goals, and ultimately win a coveted spot in your company's group of winners. 

We take great pride in our logistical expertise, destination knowledge, creative event planning and on-site service.   Contact us today to learn more at travel@travelexperts.com.