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It is always expected that prices will rise with the cost of doing business. However, the forecasted price rises for 2007 will be around 4.5% higher than the current prices for airfares, hotel rooms and car rental in the domestic market, and 4.6% higher for an international trip.
While the average family will simply change their holiday destination to somewhere a bit closer or put the trip off all together and put their holiday money towards working on their home, the price increases will severely affect corporate clients of the hotel, airline and hire vehicle industries.
Corporate travellers will have to keep a close eye on their business trip spending as business trips are all part of the cost of doing business and while companies can’t do away with their meetings and functions, they have to keep an eye on the luxuries they are booking for the management and staff.
With this price increase, and only the essential travellers making the most of the airline, hotel and hire cars, there will be less of a chance for corporate clients to secure their corporate discounts, especially in the hotel industry which is facing the largest price rise.
The prices of car hire are expected to rise only around 4-6% in North America, because of the slight reduction in supply coupled with the increase of fleet costs. International car hire costs will remain much more competitive, as around 40% of US car rental companies are affected by the fleet costs.
While rising costs are all part of business, fortunately they will be seen most dramatically in the US and the busier business centres. For more information about the prices of car and limo hire in your area, contact Legends Limos now.
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