American Express Reports That Domestic Airfares Have Gone Down While Hotel Rooms, Car Rentals Have Increased
The Business Travel Monitor released by American Express Business Travel reports that the annual Average Fare Paid for U.S. domestic airfares dropped to a six-year low at the close of 2005. Conversely, domestic and international hotel, as well as international air, and car rental prices reached new six-year highs. This news was reported by an article in Hospitality Trends.
'Despite rising fuel costs, U.S. domestic airfares for business travel settled at a six-year low in 2005, due in part to the introduction of simplified fares and more low fare competition," said Andy McGraw, Senior Vice President and General Manager of American Express Business Travel North America. 'For 2006, however, the pricing trend lines indicate that corporate travel buyers will face a tough negotiating environment across the board - whether sourcing air, hotel or car-rental inventory. The hotel industry, in particular, is already proving to be a true seller's market.'
The article also reports that domestic air average fares paid Settled at a six-year low, though rates are rising. In the fourth quarter of 2005, the U.S. air domestic Average Fare Paid edged up three percent to $223 one-way compared to $215 one-way for the same period a year ago.
As for hotels, the article reports that Average Booked Rates increased for domestic hotels in the fourth quarter of 2005 when compared to the same period in 2004. The 2005 domestic Booked Rate increased six percent to $144 from $136 the previous year. Although the international Booked Rate decreased slightly from $217 in the third quarter of 2005 to $210 in the fourth quarter, it increased by one percent compared to the $207 rate in the fourth quarter of 2004.
The article also reported that car rental costs are increasing as volume remains strong. The Average Daily Cost per car rental grew by three percent to $67 in the fourth quarter of 2005 when compared to the same period in 2004.
