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Benefits October 31, 2002
Business Travel Expenses Going For A Ride
October 31, 2002 (PLANSPONSOR.com) - Two recent
reports reveal business trips will be costing more next
year.
Reported by Eric Hazard
Overall business travel is expected to increase 5% next year. Business airfare will increase 7%; hotel and car rental will be up 2%, according to the National Business Travel Association.
American Express expects the same, projecting airfares to be up 4% and car-rental, meal and telecommunications to rise 3%. However, the report expects a 1% decrease in hotel rates.
Travel costs in 2003 have some uncertainty about them, making projections difficult:
- New airline rules making it more difficult for corporations to use non-refundable tickets.
- The reduction of “waivers and favors”, in the past used to help big corporate customers bend fare rules.
- Impending military action in Iraq, which could interrupt business travel similar to what was seen during the Persian Gulf War.