Travel costs to fall in 2009
The cost of travel in 2009 will fall as flight and hotel rates are set to reduce, it has been predicted.
Suppliers are expected to succumb to the pressure of the travel slowdown which has resulted from the global economic crisis, according to the American Express annual Global Business travel Forecast and Trends report.
A decrease in air travel demand will see increased competition between airlines which should lower prices.
And the slowing down of business traffic to financial services areas such as London and Frankfurt is likely to reduce hotel demand which should mitigate 2009 increases.
Global advisory services vice president and general manager for American Express Business travel Herve Sedky said: "Based on forecasted economic conditions for 2009 and the substantial increase in fares already experienced in 2008, it is possible that airfares in 2009 may decrease."
Falling air and hotel prices are likely to make it easier for UK holidaymakers a quarter of whom according to an American Express survey, have ditched their travel insurance policies to cut overall costs.