Traveling by plane is annoying enough now with all the security measures, the carry-on liquids ban, overcrowded planes and long waiting times. But it is also becoming more and more expensive especially for business travelers
Some airfares are more expensive because of the decreased capacity of flights. The main reason for more expensive prices is, however, the higher cost of the jet fuel. According to BCD Travel, airlines have imposed fuel surcharges from $10 to $98 per one way ticket. The International Air Transport Association (IATA) claims that these fuel surcharges cover only half of the increased fuel bill. Fuel cost is 150% up since 2003. The jet fuel now accounts for 26% of airline operating costs, and it is even more than the cost of the personnel.
The cost will be transferred to the passengers. Especially to business travelers as leisure travelers can be more flexible with their arrangements. A leisure traveler may just decide not to travel by plane or to have a vacation somewhere else. The cost for the for the business travelers is having some limits: it must stop before the business people decide to conduct business by phone, email, or videoconference.
Hotel fares are also going to rise this year from 5% up to 18% depending on location and type of hotel. The rental cars rates are also growing. It is because of the higher price of gas but mainly because of the taxes. The prices are supposed to grow by some 4% to 6% in 2007.