T&E expense forecasts for 2012. How does it look?
So what is the prognosis for business travel in 2012? Here is the long story short:
1) Companies are expecting more business travel
2) Increased pricing from suppliers across the board
Sounds like more of good news with a little bit of bad news. Companies are looking to grow their businesses and therefore expect more travel. Increased supplier pricing is expected to put a small dent. Companies can expect to see their corporate travel budgets rise.
Here is the numerical breakdown of % price increase in a few key areas:
* North America Short Haul (Economy): 2 – 5%
* North America Long Haul (Economy): 0.5 – 3.5%
* North America Short Haul (Business): 5 – 7%
* North America Long Haul (Business): 3 – 5%
* North America Mid-Range: 2.5 – 6.5%
* North America Upper-Range: 1.5 – 5.5%
* North America Base Rates: (-1)% – 0%
* North America Rate Per Day: 2 – 3%
For detailed information, see the reference article .
We have been traveling even more in spite of the bad economy. While rates are going up, the justification is easy for us due to more business. I’d love to see a study on how struggling companies cope with increased travel. Seems like it would become a catch-22 very quickly…..
@Karl – your company is in an enviable position. In our next few entries, we will be looking at how struggling companies efficiently manage increasing travel.
Thanks for your comment.