The continued availability of cheap airplane tickets and discount hotel rooms as well as a slowly improving economy contributed to global business traveling spending increasing over 6 percent to a total of a little over $62 billion in the second quarter.
Experts now estimate that business travel will rise almost 7 percent in 2011. This estimate is based on the assumption that U.S. economic recovery will continue and fend off a double-dip recession in spite of increasing oil prices, slowing global growth, and uncertain consumer confidence.
Growing demand is expected to enable hotels and airlines to increase prices. Even though the worlds economic revival is going through a soft patch, business travel spending levels indicate that the recovery will continue.
Companies will be looking to their travel departments to help offset increasing costs and keep their employees traveling.
Business travelers will experience higher prices for the rest of the year compared to 2010, but the rate of increase is forecast to be more moderate than seen earlier this year. Higher airline tickets and hotel rates are expected to drive total business travel costs up by about 5 percent in 2011.
International travel spending is increasing much more rapidly than domestic travel expenditures. Total spending on trips overseas is forecast at almost $32 billion in 20011, an increase of a little over 9 percent vs. last year. www.cheapfares.com