American Express Global Business Travel reveals these trendsfrom its eXpert insights Business Travel Monitor (BTM), its long-term price trending index for domestic and international trips originating in North America

Pricing Snapshot – Q2 2011 Business Travel Pricing Trends:

Average domestic one-way airfares increased to US$260 in Q2 2011

•  8% increase from US$240 in Q2 2010

•  5% increase over the previous quarter, US$247 Q1 2011.

 Average international one-way airfares increased to US$1,970 in Q2 2011

•  9% increase from US$1,810 in Q2 2010

•  6% increase over the previous quarter, US$1,866 Q1 2011.

Average domestic hotel rates increased to US$156 in Q2 2011

•  3% increase from US$151 in Q2 2010

•  4% increase over the previous quarter, $150 Q1 2011.

Average international hotel rates increased to US$258 in Q2 2011

•  11% increase from US$232 in Q2 2010

•  8% increase over the previous quarter, US$238 Q1 2011.

Trending Insights – Airfares

Tickets for both domestic and international flights have been consistently higher for companies throughout 2011 compared to each respective month in 2010. Having passed the pre-recession pricing levels last quarter, airfares have continued to rise. The year-to-date average fare increase has slowed the last two months, however, suggesting that fares may be stabilising.

“With the on-going supplier consolidation and alliance activity around the world and more businesses looking to aggressively channel volume with fewer suppliers, airlines have a more complete view of supply and demand than ever before and have used this information to determine pricing very effectively this year,” said Christa Degnan manning, director, eXpert insights research, Advisory Services, American Express Global Business Travel.

While rate increases have slowed, it’s highly unlikely average airfares for businesses will decrease in the near future, she noted.

Trending Insights – Hotels

Recovery in the hospitality industry continues with many companies paying more for their travellers to book accommodations.

“As hotel new development pipeline slowed with the uncertainty in the economy, hoteliers have benefited from more favorable demand to supply ratios by and large in 2011,” said Manning.

Many hoteliers have also renewed their focus on the business traveller as this more lucrative sector of travel has picked up.

“As hotel market pricing is always about location, location, location, the recovery for certain areas has been particularly strong driving hotel rates in recently popular destinations up much more rapidly. Travel buyers will need to rely heavily on volume and the ability to deliver market share to secure competitive rates in these regions, while meeting planners will want to evaluate multiple destinations to avoid the biggest price increases in cost per attendee per day next year,” she added.

                                                      U.S. Cities with Highest Hotel Rate Increases in Q2 2011 vs. Q2 2010