According to researchers with American Express Business Travel, corporate travel costs could possibly rise by double digits in 2011.
Now that the economy has begun to strengthen, worries about corporate bottom lines are also receding. Hotel rates and airfares are the key items that are expected to jump in the coming year. The National Business Travel Association (NBTA) concurs, indicating that with the improved economy, that pricing power will swing back to the hotels and airlines.
So what’s the lesson for corporate housing owners and professionals? Be prudent and cautious when raising rates. Yes, we could and all should find a way to capitalize on the economic upswing. But one of the lessons of the past couple of years has got to be learning to exercise a cautious, yet optimistic approach.
Let’s be a little more creative, prudent and before we decide it’s time to follow the pack and hike prices for our accommodations, take a look at what we need and want to achieve and adjust our rates accordingly.