Not only may Finance be processing more expense reports in the new year, those totals will also probably be higher.
That’s because you’re looking at a one-two punch that will likely raise your company’s business travel expenses:
- After years of grounding much business travel, many of your peers are planning to devote more dollars again, and
- The suppliers continue to hold all the power, meaning they’ll be increasing prices on everything from airline tickets to hotel stays.
That’s the word from a variety of business travel forecasts released in the past few weeks.
So just how much of an increase will you see? Take a look at what industry insiders are predicting for 2012.
Totals up in every T&E category
Put Accounts Payable on alert: They’re going to see higher totals in just about every column. That’s according to American Express’s Global Business Travel Forecast for 2012. AMEX broke down the ranges of increases you can expect.
It’s worth passing these predictions to A/P as well as all travel-approving supervisors so they know what’s in line and what’s out of bounds.
When employees take to the skies, here are the increases for 2012 over this year:
- North America Short Haul (Economy): 2 – 5%
- North America Long Haul (Economy): 0.5 – 3.5%
- North America Short Haul (Business): 5 – 7%, and
- North America Long Haul (Business): 3 – 5%.
The hotel picture isn’t much rosier either, increase-wise:
- North America Mid-Range: 2.5 – 6.5%, and
- North America Upper-Range: 1.5 – 5.5%.
Note: If employees head to major metropolitan areas for business, expect to see totals on the high side of these ranges. That’s where the biggest increases are predicted.
Even getting behind the wheel will cost your company more. Rental car rates are expected to increase as well:
- North America Base Rates: (-1)% – 0%, and
- North America Rate Per Day: 2 – 3%.
Budgets going up accordingly
Maybe because suppliers plan to jack up rates across the board or maybe because companies are looking to grow their businesses again – or perhaps both – biz travel budgets will be going up right along with biz travel costs in the new year.
Nearly two-thirds (63%) of your peers say their corporate travel budgets will go up in 2012.
What will your company be doing with regard to business travel in 2012? Cutting back? Loosening the purse strings? Share it here.