Experts Forecast U.S. Travel Industry to Recover in 2011

Experts forecast that the U.S. travel industry will recover in 2011. However, one drawback of the recovery would be higher airfare and hotel rates, according to AHN.

One indicator contributing to the anticipated rise in the travel industry is this year's lifting of travel restrictions by companies as their finances improve. Experts expect the trend to continue next year.

As a result, airlines are reimposing stricter contract terms and requirement, while corporate discounts are shrinking.

Industry insiders warned of a 2 to 6 percent hike in domestic air fare and 3 to 7 percent increase in international air fare.

More Americans are traveling this year according to a yearly Zagat survey released Monday. The survey found that more than 8,000 frequent fliers reported they averaged 17.4 air trips this year, up from 16.3 in 2009.

To meet the growing demand for seats, airlines have added capacity. Delta Airlines announced in October that it hiked its fourth-quarter capacity from 3 to 5 percent for domestic routes and 10 to 12 percent for international trips.

Another survey found that 24 percent of respondents intend to make more business trips in 2011 and another 56 percent to equal next year the number of trips they took this year. But 50 percent said they are now required to secure preapproval for their business trips and 25 percent opt to stay at lower cost hotels.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Another Ridiculous “Used Fleet Vehicle” Scandal

While media reports concentrate on the sting and the “outrage,” where’s the empirical evidence that fleet vehicles are less mechanically sound than vehicles sold from private owners?

Will IoT Herald a New Era in Fleet Efficiency?

With the ELD rule finally in effect, small fleet operators need to hunt for new efficiencies. In transportation logistics, Internet of Things (IoT) systems could have similar lasting impacts as telematics.

Will Cars Become Transportation Appliances?

The cars are still the stars, but this year’s L.A. Auto Show revealed an auto industry at a crossroads.

Job Finder: Access Top Talent. Fill Key Positions.

>