With the economy on the up, 2011 will see increasing demands leading to higher air fares and hotel rates. Daily hotel rates are forecasted to increase 6.4-7.4% in 2011 by CWT, while airline association IATA predicts $9.1 billion in profits for the industry.

Hotel rates are also heading higher. Carlson Wagonlit Travel’s 2011 Forecast, for Company travel. issued in the US in July, predicted that average daily rates in US hotels would increase by between 6.4 and 7.4%, admittedly from a low base. In key business cities, such as Moscow, London and New York, where occupancy has remained stubbornly high despite the recession, expect double-digit rises in rates.

Try to leverage your spend if you’re a large company by looking at previously negotiated deals. For SMEs, CWT programme managers are on hand to advise on airline deals.