Just in time for budget time! New business travel forecasts have been released that can help you determine how much more you’ll pay when road warriors take to the skies and roads next year on the company dime.
Plus, it’ll help Accounts Payable know what it should be looking for on expense reports they process.
The 2015 Global Travel Price Outlook was just released by Carlson Wagonlit Travel and The Global Business Travel Association.
The upshot: Expect to open your wallet wider across the board. Business travel costs are predicted to increase in most major categories.
By just how much? Take a look at the specifics of the data, so as you set your company’s spending levels for 2015, you’ll know you’re working within reasonable expectations.
Plus, we’ve included a few based on biz travel pricing trends to help you offset some of these increases.
Airfares: Up 2.2%
Little surprise here, it will cost your company more when travelers fly the friendly skies in 2015.
Airfares are expected to rise by an average of 2.2% next year.
But you might not see it right away. Airfares are expected to rise gradually throughout the year. So let A/P know that air charges in the early months of 2015 might look very similar to the way they did this year.
Cash-conserving tip: Steer employees towards the lower-cost carriers. Insiders say they’re trying to hold rates steady next year. So your Spirits and jet Blues may be a better option (or at least worth checking out before folks book).
Hotels: Up 2.6%
Unfortunately, the category that eats up the most budget dollars will be the one with the greatest price increases in the coming year.
Due to stronger demand, you should factor in an average increase of 2.6% for lodging expenses in 2015.
This news makes now a great time to go over strategies with employees on how to keep hotel costs down. Think about having A/P distribute a list of helpful hints for the best hotel bargains. Hint: If they include a few tips to make their hotel stays easier, they’ll likely return the favor with greater compliance. (A great source for such tips: http://www.independenttraveler.com/travel-tips/hotel-and-b-and-b/33-ways-to-sleep-better-at-a-hotel)
And if you already have arrangements with preferred suppliers you might want to approach them ASAP on how you can keep a lid on increases for next year.
Ground transportation: Flat
The one bright spot is, of course, the place where companies tend to spend the least. You likely won’t see any change in rates for car rentals, taxis, etc. The reason: An abundance in supply.
So let A/P know the numbers should look very close to last year’s in this expense report column.
The only exception? If you have employees who travel to Latin America on the business. There’s a 2% increase forecast there due to a spike in demand.