Travel Costs Predicted to Increase

The National Business Travel Association’s 2002 Business Travel Cost Forecast predicts that business travel costs will increase 3 percent this year:

• Business airfares will increase by 3 percent. The slowing economy and terrorist attacks caused businesses to trim travel spending last year. Business travelers are the airline’s highest-paying customers, and the slowdown had a huge effect on the industry. Average business airfare is expected to be $1,102.

• Hotel rates will increase by 3 percent. Low occupancy rates probably will make hotel companies more flexible on rate negotiations during the first half of the year. The average corporate room rate will be $197.

• Corporate car rental rates will increase by 5 percent. The average corporate car rental rate will be $66.

• Business meal costs will increase by 3 percent. The average business dinner will cost $25 in 2002.