Air, hotel and car rental rates are all set to rise in 2007, according to American Express Business Travel.
Air fares in the UK are expected to rise between 1 and 3%, while hotel prices are set to see an increase of between 3% and 6% due to significant demand from business travellers.
Although airfares will increase globally by 3 to 5% for economy travel and by 3 to 7% for business class fares the report does suggest that low-cost carriers will help keep prices down.
American Express Business Travel advisory service vice-president and global leader Mike Streit said: “Keeping executives on the road while holding budgets in check will be a challenge for organisations in 2007.”
The number of online booking facilities also look set to be increase significantly, a trend already underway in North America according to the survey.
“We anticipate that more organisations will ramp up their procurement focus, implement new technology tools at the point of booking, update and strengthen their travel policies and focus on traveller behaviour to ensure that negotiated savings are fully realised,” said Streit.