BUSINESS-class fares in Europe are set to increase by an average of 6%, while hotel rates and car-hire fares will both increase by 7% during 2000, according to statistics compiled by Rosenbluth International.
Rosenbluth’s director of supplier relations, Bill Hemmings blamed the air fare increases on decreased competition between carriers, a more cautious approach to capacity increases and the reluctance of carriers to sign up Pan-European deals.
In the car-rental arena, major agencies are looking to increase margins rather than market share and are facing increased fees and taxes in most major markets which are being passed on to customers. He said that despite hotel-rate increases for business travellers, demand for accommodation across Europe will remain strong.