Short- and long-haul travel for top European business destinations is set to rise, according to Egencia, the business travel arm of travel website Expedia.
Egencia’s 2010 Corporate Travel Forecast and Hotel Negotiability Index has forecast that companies will reinvest in meetings and conferences next year.
Industries expected to up their spend on corporate travel include the pharmaceutical and financial sectors and European business destinations, including London, Brussels, Berlin, Paris and Madrid, are predicted to benefit from the increased demand.
On the down-side, however, lower air capacity will result in fewer travelers, the report has predicted, while corporate contracts signed in 2009 for 2010 hotel stays are at reduced rates.
Hotel operator Rezidor last week warned that the difficult business climate is likely to continue in the short-term after it posted losses of €6m (£5.35m) for the third quarter of 2009.
The company said that while leisure travel in Europe was up in July and August, business travel demand continued to be weak and revpar decline in September was almost the same level as before the summer.
Hotel insolvencies soar >>
By Janet Harmer
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