In a separate study, the American Express (Amex) Global Business Travel Forecast for 2005 also indicated a "continued steady revival of the global business travel industry". Although the pace varies significantly by region and country, published air and hotel prices are expected to rise incrementally next year as business travel demand recovers, outpacing the growth of supply in several markets.

Despite this, Amex, like Airclaims, said increased competition, particularly in the airline sector in several regional markets, was likely to dampen any significant increases in business travel costs.

For 2005, Amex forecasts global economy/shorthaul fares will rise by zero to three per cent, and international business fares by two to five per cent. On the hotel side, room rates for both mid-range and upper-range properties will increase by one to three pre cent.

Specifically for Asia-Pacific, shorthaul economy air fares are expected to increase by three to four per cent, international business class air fares by four to five per cent and hotel rates are expected to increase by at least two per cent.

Low-cost carriers will continue to impact the airline industry in 2005 and the price increases forecasted for legacy carriers are likely to be tempered by intense competition, particularly from these carriers as they challenge the major hub-and-spoke airlines.

Amex expects negotiations environment for hotels to be slightly more challenging. Director, global consulting services, Mr Matthew Davies, said: "Now more than ever, companies need to consider the effect of foreign exchange rate changes when analysing their global spend. Air trends are affecting global occupancies around the world. Increased fare competition, rising passenger traffic and a more stable business environment are likely to drive up hotel occupancies. It is clear that the outlook for 2005 bodes well for the hotel suppliers, and it is likely that published rates will rise globally."

In the Asia-Pacific region, hotel rates will grow considerably, especially in comparison to other regions of the world. Economic growth rates particularly in India and China are driving occupancies. Supply will be limited for the short-term due to the lengthy building process. The fastest-growing economies and those most severely affected by the shocks of the past few years will be under the heaviest pricing pressure in 2005.