If you’re planning business trips, check out the most recent Global Business Travel Forecast.
That forecast, released by American Express, is designed to help executives determine their travel budgets. This year’s version looks at 2014 predictions for airfare, hotel and ground transportation costs.
The good news is the U.S.-Canada border fees of several budget airlines may fall. Ticket prices may also decrease because low-cost carriers are going to introduce more economy versus business seats, and they’ll also take on more passengers for international flights.
Read: Gifts for travellers
The forecast finds more short-haul routes to major U.S. destinations may be offered in 2014 since some economy airlines are planning to add new flight paths, while also expanding their fleets.
Even better, an increase in low-cost options may force larger airlines to cut ticket prices.
Unfortunately, ground transportation and hotel expenses are expected to rise, says the forecast. Prices are anticipated to climb between 1% and 1.5% in the ground transportation sector due to rising maintenance costs.
In the hotel sector, room prices may jump by as much as 6.4% (for both mid-range and upper-range hotels) due to local trends in major cities such as Toronto, Montreal and Calgary.
- Demand is high in Toronto’s hotel market. The sector has grown 3.4% year-over-year and will continue to expand in 2014.
- Though airfare prices are expected to drop, any declines may be offset by pending consolidation among major U.S. airlines.
- Predicted hotel rates in North America are expected to climb between 3% and 6% in 2014. However, secondary travel locations have become saturated with supply and prices will be more competitive in those regions.