Business flights and hotel rates are projected to rise in 2008 along with energy costs and business travel demand, according to a new American Express survey.
International airfares are expected to increase between 7% and 10% as air carrier investments to improve premium travel services by increasing cabin space and business and first-class capacity are passed on to travellers.
Domestic flight fares are projected to rise between 2% and 5%.
The survey estimates that, with little supply growth in upper-range hotel rooms, hotel rates will rise between 6% and 8%. Mid-range hotel room rates are expected to increase between 5% and 7%.
Corporate discount opportunities could also be decreased.
The report added that the industry's move to dynamic pricing, which adjusts prices to reflect local market demand, will add to the unpredictability of hotel costs.