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Global Travel Rates Expected to Rise 2.6% in 2015…And We Are Here to Help

The economy is rising and people are traveling more, for business and for fun. In turn, travel rates are going up…by a projected 2.6% in 2015 to be exact. Learn a little about expected travel costs and how a travel management company could help you to minimize the impact that the increase has on you.

Airfare

Expected increase: 2.5%
Due to rising demand, decreased capacity on flights, airline profits and other recent consolidations, worldwide airfare is expected in increase by 2.5% in 2015. Additional fees such as checked bags, onboard amenities, etc. could add as much as 5% on top of the base fare increases.
Why use a travel manager to book airfare?
As a travel management company, we have connections with various airlines and work to get you the best possible deals at prices you often cannot get booking as an individual. We monitor the space and know exactly when to purchase in order to secure the best rates. We can also manage last minute cancellations with ease ensuring that you don’t let unused tickets go to waste. Finally, we manage airline points and miles to ensure those don’t go unused either.

Rental car rates

Expected increase: 0%
Car rental rates are expected to remain flat in 2015 because the industry continues to have an abundance of supply and strong competition.
Why use a travel manager to book a rental car? Again, our connections really help us out in this space. We can usually secure rates that you can’t get when booking by yourself. When working on a corporate travel account, we consolidate to one or a couple vendors in order to maximize the savings and rewards.

Hotel rates

Expected increase: 2.8%
Hotel demand is outpacing the expansion of room supply which will cause rates to increase by approximately 2.8% in 2015. This puts hotels in a very strong negotiating position. Prices in the U.S. alone are expected to grow 4.5% with the largest increases being in San Francisco and Houston.
Why use a travel manager to book a hotel?
Since hotels are in such a strong position to negotiate with demand being so high, we can do the negotiating for you so you aren’t stuck paying a higher bill when you don’t have to. When working with a business account, we build relationships with preferred hotels in areas that your employees frequently travel to. We can sometimes negotiate that complimentary services (fitness centers, breakfast, parking, etc.) are worked into your contract.

Meeting & event rates

Expected increase: 3%
Meeting and event rates are projected to increase 3% in 2015 and group size is also expected to rise.
Why use a travel manager to book
meeting and event group travel? Why not?! We help with all of the heavy lifting so you can focus on what really matters, the meeting or event content.

Sources: Business Travel News, The Transnational, Global Business Travel Association (GBTA)

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