Forecast: Travel prices set to rise in 2012

NEW YORK?? Higher demand and a reduced number of available seats will lead to higher airline ticket prices next year, even in a slow-growing economy, according to the American Express Global Business Travel Forecast released Wednesday.

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But prices won't jump as much as they did between 2010 and 2011, the forecast said. Business class airfares are expected to rise the most next year.

American Express predicts prices for shorter North American flights in coach will increase by about 2 to 5 percent, while prices for longer economy flights will rise by 0.5 to 3.5 percent. In business class, rates will rise between 5 and 7 percent on shorter trips and between 3 and 5 percent for longer ones.

These increases should stick even if some Americans opt to stay home amid fears of another recession, as airlines target travelers that are willing to pay more, the forecast said.

American Express also predicts that hotel prices will be up in the low single-digits in 2012, much the same as this year.

But consumers might get a break when renting a car. Car rental rates in North America are expected to remain flat as the industry remains competitive and hold a high number of excess cars.

The 2012 Global Forecast is based on a number of data sources, including data from the American Express Business Travel Monitor, the American Express contracted rates database, transaction reports and other data sources including Smith Travel Research Global Hotel Reviews and Global Business Travel Association research on travel spending.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Source: http://www.msnbc.msn.com/id/45046250/ns/travel-news/

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