Business travel set for reemergence in 2010

During the past year the business travel sector has been hit possibly the worse when compared with leisure travel, but it is expected to make somewhat of a recovery next year. World economies are starting to relax back into stabilisation and businesses will again see a need for air travel to important meetings. Many firms have been conducting meeting over the phone and only video calling like Skype, but this is not as great, with the all-important personal touch missing. Others have looked for cheaper options to get to their destinations and have foregone the luxury of Business Class travel and pegged back their spending to economy.

As the business market gets back off the ground again so will the leisure market and next year will see a slight rise in the cost of travel related items like car hire, hotel rooms and insurance. A lot of the cost for these has been lowered this year, to encourage people back into the spending market of travel. Some airlines have even removed premium seating in favour of economy seating in the past year, to maximize their profit potential. Another fall-out of the downturn in premium travel has been the emergence and strengthening of the ‘Premium Economy’ class. Many airlines are now offering a number of comforts for a fraction of Business Class prices, although the premium economy fares are still a lot higher than regular economy.

Hotels are another source of spending for the business and leisure travel sector which are expected to rise next year. Spending at hotels across Europe has dropped dramatically this year, but London has actually increased their revenue per room available, one of the only cities in Europe. Although their prices have dropped it has been offset quite well. The future is looking bright for 2010 and the return to travel for business users will help the sector establish itself once more.