| The National Business
Travel Association (NBTA) released its 2003 business
travel costs forecast for 2003, predicting overall costs will increase
by an
average of 5 percent next year. Domestic business airfares are expected
to
make the jump by between 5-6 percent, with international fares increasing
by
approximately 6-7 percent.
Of the key market costs
forecasted in the study, hotel room rates are the
only costs expected to remain flat, or slightly increase over the
next year.
Corporate car rental rates are being estimated to increase by approximately
2-3 percent. Meals and telecommunications are expected to increase
at about
the same 2-3 percent.
Over the past few years,
companies have tightened their travel programs and
reduced overall travel spend. In addition, barring further economic
downturn, business travel demand is likely to improve, creating
upward
pressure on pricing. For companies who have negotiated/contracted
rates
with the airlines, expect to see the average airfares increase slightly
due
to new restrictions that the airlines have put in place on applying
discounts to lower priced classes of service.
GTM is committed to assisting
our corporate clients in obtaining the lowest
airfares available by reviewing system costs, providing creative
airfare
options, offering alternate airports and/or carriers, and searching
the
internet with every reservation request. In addition, GTM is currently
developing a hotel internet search product that will scan the internet
for
lower hotel rates based upon the clients request.
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