Amex forecasts a strong year for business travel

 Tuesday, February 6, 2018 

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business-travellersDemand for business travel is rising internationally.

 

It is a trend that is expected to continue well into the new year as per the Global Business Travel Forecast 2018 that was published by American Express Global Business Travel.

 

The Amex predicts that corporate travel is likely to witness a strong economy worldwide and increasing corporate confidence that would fuel steady growth in business travel in the next 12 months particularly in Asia and Europe.

 

The report also mentioned that increasing demand for business travel services would be matched by greater capacity.

 

But then it should not limit cost increase for travellers as per the report.

 

Amex also expects airfares to increase based on higher demand though it was tempered by overcapacity in some regions, competition from low-cost carriers and low fuel prices.

 

Small to moderate hotel price rises are expected and higher rental-car prices, though competition is expected to be quite strong especially from ride-sharing services like Lyft and Uber.

 

Demand for global travel to the United States is predicted to decline as a consequence of the US trade policy changes that Amex said is forcing US airlines to shift resources to domestic routes and has minimized demand for hotel rooms by international travellers that lead to overcapacity in some major cities.

 

In Europe, the ‘Brexit’ withdrawal of Great Britain from the European Union might dampen the travel demand though Amex is expecting significant increases in hotel rates in Europe outside of the UK and Spain.

 

Eventually, booming economies in the region of the Asia-Pacific are predicted to drive a surge in travel there.

 

 

 

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