Finance News & Insights

2011 T&E estimates: Good reason to rethink your travel plans

If your firm has big plans for travel next year, you’ll want to leave a lot of extra room in your budget for T&E expenses.

The 2011 business travel cost predictions are in — and they ain’t pretty. According to recent study by American Express, employers can expect a significant spike in T&E costs next year.

With costs on the rise in virtually every major category, you’ll want to let A/P know what they’ll see on road warrior’s expense reports next year.

Here’s what to expect when it comes to domestic travel and lodging:

  • An increase of 2% to 6% for economy class flights
  • An increase of 3% to 7% for business class
  • A 1% to 5% jump in mid-range hotel costs, and
  • A 2% to 6% spike for nicer hotels.

It’s worth noting that rates for car rental are expected to go down around 2%. But watch out for increased cancellation charges and other fees.

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