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.