Air fares are expected to increase while hotel prices will fall in the first half of next year, according to The Business Travel Magazine.
Although demand for travel is expected to grow throughout 2010, air fares are expected to increase while hotel rates continue to fall during the first six months of next year.
Fares are predicted to increase by 3 - 5% on 2009 prices. The increase will be gradual throughout the first part of next year, however as business travellers return to the sky with the expected improvement in the economy demand will be up - in addition to the increase that we have seen this year in fees and surcharges.
Whilst hotels are trying to maintain the same level of price for the first part of next year, we will see daily rates in European hotels remain relatively stable while US daily rates are set to fall by as much as 3%.
If you have a corporate hotel programme in place early next year is the time to negotiate when rates should be in your favour with hotels willing to go the extra mile.