Business travel is expected to rise next year, according to NBC News. The information comes from several industry forecasts that also project an increase in hotel rates and steady or declining airfares.
A 7.2 percent rise in business travel spending is projected for next year, according to a study by the Global Business Travel Association. Spending would then reach $288.8 billion. The projection is based on an improving economy, steady profits and increases in business investments.
The study was sponsored by Visa and was based on surveys of over 250 business travel professionals. According to the study, the increase in spending will be the result of price increases and real growth.
"North American airfares are expected to decline in 2014 as a result of heightened competition from low-cost carriers, challenging unemployment levels and corporate travel policies becoming more stringent in regard to business-class travel," the American Express Global Business travel Forecast 2014, released on Wednesday, read. "However, pending consolidation among major U.S. airlines may offset these expected declines."
The projected forecast follows this year, when the volume of business travel fell.
The Best Western Small Business Travel survey, another forecast that was released in October, found that 89 percent of 400 U.S. small business owners that had travel needs, planned at least as many or more trips during this fall than last year.
According to the American Express report, competition will contribute to the price of airline tickets in Europe, the Middle East and Africa.
"In response to more competition from a strengthening rail industry, which is expected to improve its business-class options, larger airlines are expected to follow the model of low-cost carriers," the report read.
Even though hotel prices are expected to rise, that rise will be market dependent as there are markets, such as Las Vegas, where prices may drop by as much as two percent, according to a spokeswoman for American Express.
This article is copyrighted by Travelers Today, the travel news leader
