Price of business travel set to rise
26 January 2009 11:11
A weakening British pound and more aggressive hotel pricing by suppliers is set to increase the cost of business travel in 2008, a leading travel management company has said.
Hogg Robinson Group (HRG) has warned that despite talk of an economic slowdown, global corporate relationships will continue to make business travel a necessity.
Margaret Bowler, global hotel relations director for HRG, told travelmole.com that the weaker sterling would contribute to higher costs.
"The benefit felt by the strong British pound, which has substantially benefited UK corporates throughout 2007, is unlikely to continue to such an extent throughout 2008," she commented.
Ms Bowler suggested that hotels would be less willing to offer deep discounts on their room rates.
"Hotels are indicating that even if occupancy levels dip slightly in the short-term they are looking to protect average room rates through aggressive yield management," she told the travel website.
Experts say that rising costs of travel underscore the need for businesses to have appropriate travel insurance arrangements in place.