More companies are realising the importance of corporate travel towards achieving company growth, leaving no signs of business travel slowing over the next year.

With this in mind, experts are predicting another increase in airfares and hotel rates of between 4 and 6% in 2012.

Airline ticket prices will increase in the Asia Pacific region by 6%, with the highest airfare growth predicted for Jakarta (15%), Mumbai (13%) and Bangkok (11%). Airline ticket prices in Europe and North America are also expected to rise by 4%.

The average daily hotel rate is expected to rise by 7% in the Asia Pacific region, 5% in North America, and 2% in Europe.

Higher travel rates and airline fees will be the driving factors for an increase in corporate travel budgets in 2012, especially for North America and the Asia Pacific regions.

For Australia, hotel room rates are expected to rise by between 4.1% and 4.9% in the first half of 2012, and between 4.4% and 5.1% in the second half of 2012.

In light of the increase in travel expenses, most corporate business will continue travelling. Findings have shown that most companies estimate to have won 50% of prospects throughout the year, through face to face contact, compared to just 31% without in person meetings.

In an attempt to reduce the growing travel costs, most companies will look towards implementing stronger travel policies and strategic negotiations with suppliers throughout 2012.

To discuss your corporate travel policy, please contact your TravelEdge Account Manager.