Crystal Ball for 2011

December 10 2010 by Chris McGinnis

iStock_000013236582XSmall.jpgIt's that time of year again...when folks like me do their best to gaze into the future and predict what may or may not happen in the travel world for 2011. Here are 10 of my best guesses:

  • Business travel prices will continue to rise, but not enough to dampen renewed demand.
  • Due to continued overcapacity, hotel rates should remain about the same or slightly up, on average, over the next year. Hotel rates in New York will rise, but a steady supply of new hotels opening in the City should keep rate inflation to acceptable levels, especially among mid-tier properties.
  • More upscale hotel chains will join their midscale counterparts like Best Western to offer free in-room Wi-Fi. We'll also see hoteliers pay more attention to bandwidth issues on their existing systems. What good is free Wi-Fi if it doesn't work?
  • Airfares will continue to rise sharply, especially for flights between cities where only one or two legacy carriers operate.
  • Hotel chains will offer more loyalty program promotions designed to get travelers to increase the duration of their stays. (Such as "buy two nights, get the third free.")
  • In-flight phone calling, now available on several non-U.S. carriers, will become more prevalent and might even be considered by an airline stateside. High per-call rates and peer pressure should keep abuse in check.
  • In terms of travel deals, there will be a wider gap between peak season and off-season prices. Those with flexibility to travel outside the peak travel dates will continue to find good deals. Those who must travel during peak periods will face sticker shock.
  • Due to recent changes in security screening, the airport hassle factor will return, and more business travelers and families will consider driving instead of flying. The "five hour rule" might change to the "six hour rule."
  • There will be a lot more focus on business travelers' smart phones, which will soon be used to open hotel room doors and will be accepted as payment instead of credit cards.
  • More business travelers will attend trade shows and conventions this year due to pent-up demand. Many companies banned non-essential travel over the last two years and business travelers are eager to once again get out of the office and re-establish face-to-face contact with customers and colleagues.

Categories : Road Warriors

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