Business flight costs to soar

10 November 2009

10 November 2009 | Allie Anderson

The cost of flying to some of the world's top destinations is to rise next year.

Travel to North American cities will lead the trend, with average air prices set to increase 5-10 per cent compared with 2009, according to corporate travel firm Egencia's 2010 Corporate Travel Forecast and Hotel Negotiability Index.

Flights to top destinations in Europe and Asia-Pacific will rise less steeply, with an average increase of just over 2 per cent.

Egencia's study evaluates international trends and researches supplier markets across 40 cities worldwide. It found the cost of travel will be influenced by better demand for business travel amid economic recovery, as well as industry mergers and inflation.

The largest European rise will be in trips to Barcelona, where prices are predicted to increase 7 per cent. Fares to Berlin, Brussels and Paris will level off, while the cost of travelling to London will increase just 1 per cent.

In North America, the largest increase is predicted in travel to San Diego, with fares to Boston and Vancouver increasing the least. However, the cost of travelling to Atlanta looks set to fall 1 per cent - the only worldwide destination where prices are expected to fall.

Egencia president Rob Greyber said: "Overall, we expect to see some year-over-year recovery of business travel in 2010 as economies stabilise around the world. The resulting demand coupled with suppliers maintaining capacity discipline is expected to push air prices higher to many destinations."


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