The economic recovery in the US means business travel is now a suppliers', rather than a buyers' market, according to American Express.  Data from American Express's Business Travel Monitor North America reveals a year on year 8% rise in international airfares in the third quarter, prompting the travel management company to conclude that negotiating power is changing hands from buyer to supplier.

"During the past quarter we've witnessed a distinct shift from a buyers' market to a suppliers' market leading to higher prices across several travel categories including airfare and hotel rates," said Christa Degnan Manning, eXpert insights research director for Amex's Global Advisory Services.

The survey found average international fares of $1,781, compared with $1,638 in Q3 2009. However, the latest figure is far short of the same period in 2008, when pre-recession rates reached $2,010. Average domestic fares in the latest quarter reached $228, up 6% on last year's $215 but still short of 2008's $253.  (Editor's Note:  C I Travel's corporate travelers paid an average international fare of $1469 in 3^rd quarter 2010 and domestic fares averaged $222 for the same period.  Domestic fares were computed as one-way fares.)

The survey revealed a smaller recovery in the hotel sector. New York leads the way with a 10% increase year on year to an average $348 and other cities averaging 4-5%. Taken as whole, average domestic US rates were $148, up 3%. International rates fell $1 year on year to $238.  (Editor's Note: C I Travel's corporate travelers paid an average 3^rd quarter rate of $114 per domestic hotel night stay and a rate of $162 per night outside the U.S.) 

"As business travelers headed back on the road, hoteliers have been able to make marginal increases this year," said Manning. She warned that construction projects that had been put on hold during the recession might mean bigger increases next year as capacity tightens in some locations.

"Global Advisory Services has already seen an average increase of more than 7% in corporate rates worldwide this year for 2011 business travelers, she said.

"Much of it came by surprise," Sen. Robert Menendez, D-N.J., said, because many fees were not clearly disclosed to consumers. And, he said, the $4.3 billion reported Monday by the Transportation Department didn't represent all the fees airlines collected for such privileges as boarding early or selecting a seat.

Menendez's remarks follow a new fee announced Monday by Continental Airlines and a speech last week by former American Airlines CEO Robert Crandall in which he called for more transparency in all airline fees.

The new Continental fee lets consumers hold a reservation and lock in a price for up to a week before paying for a ticket.

At an airline symposium in Turkey Dec. 7, Crandall said the industry's objection to consumers' calls for clear disclosure of extra fees "courts unnecessary customer discontent" and "risks its good name and reputation."

A proposed Transportation Department rule would require U.S. and foreign airlines to "prominently disclose" on their websites all baggage-fee increases and a link to a list of optional fees. Airlines also would be required to include bag fees on electronic tickets.

The Transportation Department is reviewing public comments and expects to issue a final rule in the spring, says spokesman Bill Mosley.

Menendez, who is pushing similar disclosure in legislation, says families are "watching every last penny," and deserve "a full understanding not just how much it will cost to get to the airport, but how much it will cost to actually get to their destination."

The airlines are "winning big" with extra fees, says Kate Hanni, executive director of the consumer advocacy group FlyersRights.org.

They're eluding "disclosure of the full cost of air travel, keeping the public from making apples-to-apples comparisons among carriers," she says

Airlines pay taxes on tickets bought by passengers but avoid paying taxes on ancillary fees, Hanni says. Unlike airline tax money, she says, no money from fees goes into a federal aviation trust fund for safety projects and modernization of the air traffic control system.

Survey: Corp. Travel Budgets To Rise As Air Discounts Wane

Air travel budgets and volumes are poised to return to pre-recession peaks by the end of 2012, and airlines will maintain or even further pricing power and negotiating leverage in the meantime, according to a Morgan Stanley survey of 273 corporate travel buyers released on Friday. Though corporate travel demand is increasing, buyers continue to closely manage spend, largely maintaining premium-travel restrictions deployed during the downturn.

"Our survey suggests that airlines are competing less aggressively using corporate discounts," Morgan Stanley aviation analyst William Greene reported in a research note, which found percentage-off discounts are falling from 2008 peaks. Last year, the report noted, airlines began lowering many discounts from a range of 21 percent to 30 percent down to levels below 20 percent. "Importantly, our most recent survey suggests this trend continues," Morgan Stanley reported.

With discounts falling, buyers expect corporate negotiated airfares to grow next year by mid-single-digit percentages. The airlines' pricing power is attributed not only to growing demand, but also to the "enhanced market power" that has resulted from legacy carrier consolidation and the growing dominance of antitrust-immune joint ventures on international routes, Morgan Stanley reported.

Of the respondents, 81 percent expect corporate air bookings to grow next year. Of those, about two-thirds said growth would exceed 5 percent. "This is consistent with anecdotes we've heard suggesting that while corporate spending on non-critical business travel remained tight in 2010, it may begin to relax incrementally as economic conditions continue to improve gradually in 2011," Morgan Stanley noted.

According to the survey, 60 percent of respondents expect their corporate travel budgets to surpass pre-recession peaks by the end of 2012, though 15 percent indicated "their corporate travel trends are permanently impaired." Greene reported that a stronger-than-expected economic recovery could propel budgets to peak levels even sooner than the end of 2012.

"Even if economic trends do surprise corporate travel managers to the upside, companies are unlikely to relax premium travel policies at this point in the cycle," Morgan Stanley noted, as more than 70 percent of the respondents expect to maintain their "existing, conservative" premium-travel policies, with fewer than 10 percent expecting to loosen them.

Traveling Abroad in 2011 - Read This Before You Go

If a Chinese person tells you that you look fat, don't be offended -- it's a compliment. This is just one of the important things to know if doing business overseas is on your list of New Year's resolutions.

"It's important to be aware that most Chinese people are very direct," said Syndi Seid, an expert on international customs and founder of AdvancedEtiquette.com in San Francisco. "They will often ask you personal questions about your salary or family."

Being prepared to deal with the complexities of other cultures before going global is critical to your success. The good news is that there are tremendous resources available to help you get started, and here's why:

"Seventy percent of the world's purchasing power and ninety percent of the population is located outside of the U.S," said Karen Zens, deputy assistant secretary for international trade at the International Trade Administration.

Here are 12 things to consider before booking a flight:

1. Similar to the U.S., every country has different regions. Language, customs and cuisine vary, so become acquainted with the particular region you plan to visit. In addition to reading books and magazines about the country, try to meet as many people as you can from that country before you go. One great way to learn about life abroad is to host visitors from that country. Ask friends and business contacts to make introductions or contact your local chamber of commerce.

2. Read current books, magazines and online information about your target country. Follow news reports to up to date on social and political issues. Set Google Alerts to monitor what's going on. You don't want to be traveling overseas during unstable times.

3. Contact the U.S. Department of Commerce. The department has commercial experts based in 126 countries. Their job is to provide business owners information and make introductions. Best of all, most of their services are free.

4. Learn how to pronounce names correctly and memorize a few key phrases in the native language. Making an effort to learn the local language makes a positive impression. Hire an interpreter for business meetings. Brief them about your business and products before the meeting. Explain what you hope to accomplish so they can prepare for the meeting.

5. If you don't have an international mobile phone, rent a local phone. (You can rent a mobile phone at most major airports). It's much easier to set up meetings if you have a local number. Texting is usually cheaper than making calls abroad. Use Skype to keep in touch with friends and family back home.

6. Be willing to try the local cuisine. As long as you are not allergic or the food served violates a religious or dietary restriction, try it. Not eating may offend your host, according to Seid.

7. Be patient. The biggest mistake Americans make is not having the patience to build solid relationships. "No one likes to be treated, nor thought of as just a dollar sign," said Seid. "Build at least two mentor-type relationships with new and trusted friends in the country who are willing to be on call whenever you need advice or direction."

8. Don't forget to carry your hotel residence card at all times. "Never leave the hotel without a card that can help a taxi driver know how to get you back home safely."

"Always dress up because you can always dress down," advises etiquette expert, Syndi Seid. Many business dinners abroad are formal, so men should pack a white shirt, tie and tuxedo. Women should bring a full length evening dress or dressy pants suit. Dress conservatively and professionally for business meetings: a suit or jacket and tie for men and business attire for women.

9. Be careful to address someone by their proper title. It's best to use Mr. or Ms. "The global trend is to honor a person's gender, but not focus on a woman's marital status," said Seid.

10. During a toast, look directly at the person making the toast and take a sip. If the toast is in your honor, don't sip. Just smile and say "thank you." Immediately following the toast to you, make a toast to your host and everyone else. Always wait for your host to start eating before digging in.

11. Keep both hands on top of the table at all times during a meeting or meal. "It means you are not hiding weapons under the table or holding hands with the host's sweetheart," said Seid.

Other quick notes: pack extra prescription medicine and keep it in the original containers. Bring along a small medical kit, including plastic bandages for cuts and scrapes, medicine for treating diarrhea and indigestion, cold remedies and cough drops.

U.S. hotel rates continued to inch upward in October, a pattern that should continue for the rest of the year, according to Smith Travel Research data. U.S. average daily rate in October rose 1.2 percent compared with the prior year. Occupancy reached 61.3 percent, up 6.9 percent from October 2009, contributing to an 8.2 percent increase in revenue per available room. STR president Mark Lomanno attributed the "sluggish" room rate growth to "lower-rated group business that was booked months before there was a significant demand turnaround. We're hopeful that we will see steady, but probably slow, room rate growth for the remainder of the year." New York and Boston posted the highest rate increases, up 6.9 percent and 6 percent, respectively. Rates declined in a few markets, including Philadelphia (down 7.3 percent) and Nashville (down 5.1 percent). Occupancy increased across all major U.S. markets, including a 14.8 percent increase in New Orleans and a 13.2 percent increase in Dallas.

New Hotels Come on Line in Pittsburgh, Austin, Chicago and Miami

Hotel companies have this fantastic vision of 2011, filled with sugar plums and rapid nightly rate increases. I can't speak for the sugar plums--Does anyone even make sugar plums anymore?--but the rate increases seem iffy. Which might make the spate of new hotel openings this week seem like a bad idea. Still, they open 'em, we cover 'em. To wit: Hyatt has opened a 178-room Hyatt Place in Pittsburgh. It's across the Allegheny River from the downtown Golden Triangle and between Heinz Field (home of the Steelers) and PNC Park (home of the Pirates). ... Starwood has opened the 251-room W Austin in the Second Street downtown district. The hotel is connected to The Moody Theater, a new entertainment venue and the new home of the Austin City Limits television show. ... Carlson has opened an 81-room Country Inns & Suites in the city of Texarkana, Texas. ... There's also two notable conversions this week: Wyndham has slapped its name on Chicago's Hotel Blake, the 162-room property in the converted Morton Salt building. And Starwood has put the Sheraton name on the former Wyndham property located across NW 42nd Avenue from Miami International Airport. The 405-room hotel has recently undergone a $6 million upgrade.

More Than a Place to Sleep

You care about the quality of your hotel because it's not just the place you lay your head at night but a workspace, according to a new Deloitte survey of business travelers. Roughly two-thirds of respondents agreed that they often work in their room (68 percent) and that they expect a lot more from a hotel than just a clean room and comfortable bed (65 percent). Further, almost four out of five respondents felt that the high0seed internet (79 percent) and free parking (77 percent) were important amenities to them when staying a a hotel for business.  (Source: Deloitte press release).

Report: Scanners can't detect some hidden items
A new analysis by researchers at the University of California suggests that full-body scanners used to screen travelers at the nation's airports may not detect some hidden items. The report found that the scanners could not detect items placed outside the side of the body.

JFK, Houston, Detroit among the most beautiful airport terminals
Airlines often invest billions in terminals at their hub airports, betting that a more pleasant and efficient facility will translate into a competitive advantage with frequent fliers. So who's getting the most bang for the buck? TheStreet.com names its four most beautiful terminals in the U.S., including American Airlines' Terminal 8 and JetBlue's T5, both at JFK; United/Continental's Terminal E at Houston Bush Intercontinental; and Delta's 122-gate terminal at Detroit Metro.