Business Travel Costs

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

Affiliate Program

» Articles » News » Business Travel Costs

Credit Federal

Personal loan and credit card resource serving millions of good and bad credit U.S. consumers.

View all news by Credit Federal...

Business Travel Costs

By Credit Federal | Published 12/14/2005

BUSINESS TRAVEL COSTS CONTINUE STEADY CLIMB IN THIRD QUARTER

According to the Business Travel Monitor by American Express Business Travel, the world's largest travel management company, average airfares for U.S. domestic and international routes rose in the third quarter compared to the second quarter of 2005. Notably, on a year-over-year quarterly period, the Average Fare Paid on international routes has increased more than ten percent. For that same year-over-year quarterly period, international hotel rates continued to climb, while domestic hotel and car rental rates have leveled off.

"With increased demand for global travel, continued oil pricing pressures, reduced supplier capacity, particularly for air and hotel inventory, business travel costs continue their steady climb," said Andy McGraw, Senior Vice President and General Manager of American Express Business Travel North America. "Looking to 2006, expense containment and strategic travel program management, from an investment and policy compliance standpoint, will be critical for corporate travel buyers and managers alike."

Domestic Average Fare Paid Increases Slightly
According to the Business Travel Monitor, which tracks 329 domestic city pairs, the U.S. domestic Average Fare Paid for business travel during the third quarter of 2005 increased one percent to $219 one-way, up from $217 one-way for the same period in 2004, and also up one percent from the $218 one-way fare posted in the second quarter of 2005.

Though increasing through the nine month period ending September 31, 2005, the annual Average Fare Paid has steadily declined since year-end 2000, as follows:

2000 -- $259
2001 -- $259
2002 -- $243
2003 -- $243
2004 -- $225
Q1 2005 -- $202
Q2 2005 -- $218
Q3 2005 -- $219
The Average Fare Paid reflects the price paid by American Express Business Travel clients and includes a variety of fare types actually booked by business travelers including first class, unrestricted and discount air fares. The American Express Business Travel's Average Fare Paid continues to be lower than published business airfares.

International Travel Rates Climb
Notably, across the Business Travel Monitor's 160 international city pairs, for the third quarter of 2005 the international Average Fare Paid grew ten percent to $1,633, with First Class and Business Class international airfares also increasing five percent to $5,782 and $3,882 respectively, as compared to the third quarter of 2004.

Comparing the third quarter of 2005 to the second quarter of 2005, the average, one-way Business Class international fare increased one percent to $3,882, and the average one-way First Class international fare also increased one percent to $5,782. For the same period, the average one-way Discount Economy international fare saw a three percent increase to $1,081.

International Hotel Rates Jump, Domestic Rates Increase Slightly
Based on the Monitor's findings, average booked hotel rates increased for both international and domestic hotels in the third quarter of 2005 when compared to the same period in 2004. The international booked rate rose to $217 from $204, while the U.S. domestic booked rate rose one dollar ($131) versus $130 last year.

Booked hotel rates, both international and domestic, represent the total spending of all American Express Business Travel clients divided by the total number of room nights confirmed.

Car Rental Costs Change Little
The Monitor also noted that the average daily cost for car rentals paid for with the American Express? Corporate Card, which includes all charges incurred (mileage, gas, tax and insurance), grew by one percent to $66 in the third quarter of 2005 when compared to the same period in 2004.

During the same time, the average cost per rental increased by two percent to $195 from $192, while the average length of rental in days (2.9 days) remained relatively level.

About the American Express Business Travel Monitor
eCLIPSE Advisors, the global travel procurement subsidiary of American Express, creates the American Express Business Travel Monitor, a benchmarking service that offers corporations a comprehensive collection of pricing data across major travel and entertainment (T&E) expenses, by accessing American Express' extensive global database of purchase information. The American Express Business Travel Monitor tracks a variety of travel expense categories, including published and purchased pricing for airfares, hotels and car rentals made from a United States point of sale.

About American Express Business Travel
American Express Business Travel, a division of the American Express Company, is dedicated to helping its customers realize the greatest possible value from their investment in travel through increased cost savings, outstanding customer service and greater spend control. For small businesses, medium-sized enterprises and multinational corporations, American Express Business Travel provides a combination of industry-leading booking technology, travel management consulting expertise, strategic sourcing and supplier negotiation support and customer service available around the world, around the clock, online and offline. American Express operates the world's largest travel agency network, recording nearly $20 billion in worldwide travel sales in 2004.

American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, business services and international banking.

Share this Financial Article with a Friend - click here

Webmasters: Free Financial Content for Your Website!

Multiple ways to use our financial content:

1) You can use our RSS Feeds for automatic insertion and updates

2) You can simply link to this article

3) You can copy/paste the HTML code below (do not remove any links).

Business Travel Costs - by <a href=http://creditfederal.com>CreditFederal.com</a> BUSINESS TRAVEL COSTS CONTINUE STEADY CLIMB IN THIRD QUARTER According to the Business Travel Monitor by <a href="http://creditfederal.com/americanexpress-credit-card.html"> American Express</a> Business Travel, the world's largest travel management company, average airfares for U.S. domestic and international routes rose in the third quarter compared to the second quarter of 2005. Notably, on a year-over-year quarterly period, the Average Fare Paid on international routes has increased more than ten percent. For that same year-over-year quarterly period, international hotel rates continued to climb, while domestic hotel and car rental rates have leveled off. "With increased demand for global travel, continued oil pricing pressures, reduced supplier capacity, particularly for air and hotel inventory, <a href="http://creditfederal.com/small-business-credit-card.html"> business travel</a> costs continue their steady climb," said Andy McGraw, Senior Vice President and General Manager of American Express Business Travel North America. "Looking to 2006, expense containment and strategic travel program management, from an investment and policy compliance standpoint, will be critical for corporate travel buyers and managers alike." Domestic Average Fare Paid Increases Slightly According to the Business Travel Monitor, which tracks 329 domestic city pairs, the U.S. domestic Average Fare Paid for business travel during the third quarter of 2005 increased one percent to $219 one-way, up from $217 one-way for the same period in 2004, and also up one percent from the $218 one-way fare posted in the second quarter of 2005. Though increasing through the nine month period ending September 31, 2005, the annual Average Fare Paid has steadily declined since year-end 2000, as follows: 2000 -- $259 2001 -- $259 2002 -- $243 2003 -- $243 2004 -- $225 Q1 2005 -- $202 Q2 2005 -- $218 Q3 2005 -- $219 The Average Fare Paid reflects the price paid by American Express Business Travel clients and includes a variety of fare types actually booked by business travelers including first class, unrestricted and discount air fares. The American Express Business Travel's Average Fare Paid continues to be lower than published business airfares. International Travel Rates Climb Notably, across the Business Travel Monitor's 160 international city pairs, for the third quarter of 2005 the international Average Fare Paid grew ten percent to $1,633, with First Class and Business Class international airfares also increasing five percent to $5,782 and $3,882 respectively, as compared to the third quarter of 2004. Comparing the third quarter of 2005 to the second quarter of 2005, the average, one-way Business Class international fare increased one percent to $3,882, and the average one-way First Class international fare also increased one percent to $5,782. For the same period, the average one-way Discount Economy international fare saw a three percent increase to $1,081. International Hotel Rates Jump, Domestic Rates Increase Slightly Based on the Monitor's findings, average booked hotel rates increased for both international and domestic hotels in the third quarter of 2005 when compared to the same period in 2004. The international booked rate rose to $217 from $204, while the U.S. domestic booked rate rose one dollar ($131) versus $130 last year. Booked hotel rates, both international and domestic, represent the total spending of all American Express Business Travel clients divided by the total number of room nights confirmed. Car Rental Costs Change Little The Monitor also noted that the average daily cost for car rentals paid for with the American Express? Corporate Card, which includes all charges incurred (mileage, gas, tax and insurance), grew by one percent to $66 in the third quarter of 2005 when compared to the same period in 2004. During the same time, the average cost per rental increased by two percent to $195 from $192, while the average length of rental in days (2.9 days) remained relatively level. About the American Express Business Travel Monitor eCLIPSE Advisors, the global travel procurement subsidiary of American Express, creates the American Express Business Travel Monitor, a benchmarking service that offers corporations a comprehensive collection of pricing data across major travel and entertainment (T&E) expenses, by accessing American Express' extensive global database of purchase information. The American Express Business Travel Monitor tracks a variety of travel expense categories, including published and purchased pricing for airfares, hotels and car rentals made from a United States point of sale. About American Express Business Travel American Express Business Travel, a division of the American Express Company, is dedicated to helping its customers realize the greatest possible value from their investment in travel through increased cost savings, outstanding customer service and greater spend control. For small businesses, medium-sized enterprises and multinational corporations, American Express Business Travel provides a combination of industry-leading booking technology, travel management consulting expertise, strategic sourcing and supplier negotiation support and customer service available around the world, around the clock, online and offline. American Express operates the world's largest travel agency network, recording nearly $20 billion in worldwide travel sales in 2004. American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, business services and international banking. This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.