US purchasers find air fares on the rise

17 April 2008
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18 April 2008 | Jake Kanter

The cost of air travel to US buyers grew by 8 per cent in 2007 compared with a year before.

According to a report by American Express Business Travel, the average international air fare jumped from $1,707 (£855) in 2006 to $1,836 (£920) in 2007. This was the biggest price increase since the study began in 1999, and was blamed on rising fuel costs.

The study also found the price of US hotel accommodation was ballooning. The average night in a hotel went from $230 (£115) in 2006 to $266 (£133) in 2007. The high demand for accommodation and increased renovation and operating costs were cited as causes.

Car rental costs increased by an average of $3 (£1.50), reaching $72 (£36) in 2007. The survey said a slowdown in the economy meant rental firms could negotiate better deals with manufacturers for new vehicles.

Hervé Sedky, vice-president and general manager, global advisery services at American Express Business Travel, said travel buyers must be alert to constantly changing prices if they are to make savings.


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