Yes! Hotel prices are forecasted to drop by 2%-3% in 2010.
You thought there was only good news in the 2010 forecast didn’t you. Sorry.
Here’s the bad news: airlines will be able to raise ticket prices by 2% to 8% in 2010. And, even though hotel costs should go down, the overall cost of a domestic trip is forecasted to increase by 1.2% in 2010. Bummer.
Airlines have been able to lower supply by reducing or eliminating flights leading to the predicted rise in ticket prices. Hotels, on the other hand, have a fixed supply leading to lower room rates as competition for the fewer number of travelers heats up.
Says who? American Express Business Travel, that’s who.
American Express Business Travel recently released it’s annual Global Business Travel Forecast. AMEX has an excellent pulse on travel costs due to their position as one of the world’s largest travel agencies.
Do you plan to increase or decrease your travel in 2010 and why? Please comment!
AMEX 2010 Global Business Travel Forecast
