As the year 2009 draws to close and various global economies slowly emerge from the recession, business travel is expected to pick up somewhat in 2010 as the pent up demand for meetings and face to face contact which was severely curbed during the previous year is unleashed. Business travel which had grown at a blistering pace since 1998 slowed down significantly during the last two years as most companies tried to grapple with the global recessionary trends which resulted in a fundamental change in how they managed their travel budgets so as that they shifted their focus to getting more trips out of the same travel budget and also learned to effectively measure the return on investment in business connections.
Data released by The International Air Transport Association in September 2009 indicates that worldwide premium cabin traffic has declined over the previous year by nearly 14%. Companies in the U.S. and around the world, during the peak of recession had resorted to various measures to reduce business class usage from lengthening the amount of flying time required before allowing an employee to fly business class to restricting access to business class cabins for only high-ranking executives and even dropping business class travel on certain domestic routes. However not one company had eliminated the often considered essential and necessary business class travel completely instead they had attempted to adjust their business class policy to stretch their travel dollars further.
A recent survey estimates that business travel growth for the world’s largest business travel market, the U.S. which is still dealing with 10% unemployment will be up by one percent in 2010. Moreover airline route and capacity reductions which were carried out in 2009 to meet depressed demand levels will actually push prices of business class air fares up in 2010 as the economy recovers and the demand for business travel gradually inches up. Studies further indicate that air fares will increase by up to 5 percent globally for economy class while business class long-haul fares are expected to increase by 1 percent to 6 percent. Similarly in North America, ticket prices are expected to rise between 2 percent and 7 percent for economy class travel and by 1 percent to 6 percent for travel in business class.
The depressed demand levels during the recession of 2009 had resulted in lower prices throughout the business travel industry most notably in the hotel sector which unlike the airline sector could not reduce capacity in response to lower demand levels. These low hotel rates are expected to continue all throughout 2010 as various hotel properties fight to gain back the meetings, conventions and incentive travel business that they lost during the recession. Analysts predict room rates will fall by 1% to 6% in North American hotels while upscale properties are expected to offer deeper price cuts as they try to win back both corporate and leisure travelers. Car rentals rates however are expected to rise slightly due to rise in prices resulting from the decrease in capacity in 2009 and the resultant rise in cost of replacing old fleets.
These business travel forecasts for the year 2010 seem to emphasize the fact that managing business travel is a complex affair which requires companies to fully understand the rapidly changing dynamics of the industry and supply base and respond to its trends accordingly. This calls for the use of a preferred travel management company which can help to effectively control not only travel costs but to also negotiate the best business travel deals with suppliers for a company looking to maximize its return from its business travel investment.
The New York City based travel management company, Fare Buzz is one such company which constantly has a finger on the pulse of the business travel industry and can easily offer ‘best buy’ strategies for its clients due to the exclusive relationship that is has with several domestic and international airlines as well as more than 100,000 worldwide hotel properties. Clients aver that by partnering with Fare Buzz they have managed to achieve savings of nearly 70% as compared to booking with regular channels.
Fare Buzz is a leading supplier of cheap business class flights and through its contracts with over sixty domestic and international airlines it is able to procure cheap business class air fares to nearly every global destination. It is worth mentioning that these cheap business class tickets come with all the perks that are normally associated with regular business class tickets like mileage accrual and pre-assigned seats. Moreover even if business class fares rise in 2010 as predicted, you need not worry about curtailing or reducing those essential ‘good for business’ business travel trips for if you decide to partner with Fare Buzz, you are guaranteed to receive the most competitive business class fares for all your business travel needs. So rather than reworking your business class policy why don't you call the Fare Buzz business travel hotline at 1-800-847-1963 and discover for yourself the many amazing business travel deals that it has to offer?.