Twin Cities Transportation Costs vs. Europe for 2016


While we are most concerned about the Twin Cities, we can look to Europe to discover trends. European travelers shouldn’t worry about air transportation costs these days. The prices on airline tickets in Europe will not change significantly the next year. It is expected that airline ticket prices will remain to be stable in 2016. However, premium cabin travel costs in Europe are predicted to have an increase the next year.

Of course, air prices may change in different parts of Europe. It is worth saying that the demand for travel is constantly increasing and a lot of new routes have been added among airlines in the United Kingdom. However, the data of the American Express Global Business Travel Forecast 2016 show that the air prices will probably remain to be stable in the country.

Special attention should be drawn to the fact that Low Cost Carriers (LCCs) have vastly spread across the Nordic countries. Thus, people can benefit from new means of transportation that is more efficient and affordable. Obviously, low cost carriers will have a huge impact on transportation costs throughout Europe. That’s why air prices are expected not to increase in the Nordic countries significantly the next year.

The prices on ground transportation services may Continue reading “Twin Cities Transportation Costs vs. Europe for 2016”

Predictions about Transportation Costs in Minneapolis for 2016


For a great number of business travelers in North America, it is interesting to know what challenges tourism industry in their country will have the next year. The most important question that most travelers are concerned about is whether transportation costs will increase, decrease or be the same in 2016? Thus, it is the right time to clarify the situation and start making predictions now. Here, we are going to tell what travelers in North America should expect the next year.

In fact, the American Express Global Business Travel has already made its predictions about transportation costs in North America for the next year. The data of the latest forecast show that transportation costs in North America will increase in 2016. However, the increase in transportation costs is expected to be minimal.

Talking about the United States, it is necessary to note that the country has demonstrated steady growth this year. The demand for travel and transportation services has increased as well. Another important fact is that a lot of companies offer short-haul flights in the country these days. So, due to high level competition the prices on airplane tickets in the U.S. will hardly have a significant increase in 2016. However, the same can’t be said about long-haul flights to Asia and Latin America. The prices on this type of flights will probably change the next year.

If we analyze the predictions about transportation costs in Canada for 2016 we will see that the prices on short and long-haul flights are likely to decrease the next year. However, the decrease in prices is not going to be significant. Such situation can be explained by the fact that oil prices are constantly decreasing and airline industry remain to be highly competitive in Canada.

Now, let’s talk about ground transportation costs in Minneapolis. The prices on ground transportation services are going to increase in many countries of North America the next year, according to the American Express Global Business Travel Forecast 2016. Small sized businesses which operate in ground transportation industry are going to show the huge increase in prices the next year. So, we can come to the point that ground transportation is going to become more expensive in North America the next year.

Local limousine company, Star Transportation, has debuted a new shuttle service from Minneapolis MSP airport to Rochester. Shuttle services can be designed to be a high end shuttle for travelers coming into airports MSP or Rochester. Even with transportation costs rising in the coming year, it is a good illustration that the volume of travelers can overcome higher costs. We can expect to see new services by transportation companies in the near future.

Profits of Airline Companies Will Grow by 10% in 2016


Another year is now coming to an end. Will any important changes happen in the global tourism industry the next year? Will airline transport costs increase or decrease in 2016? Obviously, a lot of travelers want to find the answers to these interesting questions. Let’s analyze the situation with airline transport costs now and try to make predictions for the next year.

As it is expected, airline companies will increase their profits by approximately 10% the next year. How can this situation be explained? In fact, there are two main factors which are expected to have a huge impact on the profits of companies which operate in airline transport industry. It is important to say that fuel prices have been decreasing for a long period of time. So, most likely they will continue to drop the next year. On the other hand, the demand for travel is growing globally. The data of recent analysis from International Air Transport Association (IATA) show that the number of airline passengers has grown to 3.6 billion in 2015 and is likely to grow to 3.8 billion in 2016. So, it’s likely that airline companies will not decrease ticket prices significantly in the near future. Airline companies will increase their profits by about 10% the next year, according to the data provided by IATA.

The data show that airline industry delivered a net profit of $17.3 billion in 2014. However, the situation has vastly changed since the moment oil prices began to decrease. As it has been estimated, the profits of airline industry will reach $33 billion and $36.3 billion in 2015 and 2016 respectively. IATA Director General, Tony Tyler, has recently commented the situation and made some kind of prediction for 2016. He notes that airline companies will deliver 8.3% this year and 8.6% the next year. About $750 billion will be spent on air transport the next year.

Without a doubt, this piece of news is very important to investors who are going to put their money in airline industry in the future. Airline industry will remain to be a wonderful investment opportunity the next year.

Transportation Costs are Likely to Increase in 2016

Today, the economies of many countries in the world are growing, the gas prices are decreasing and there is huge demand for services provided by travel agencies. The data of numerous analysis shows that transportation costs are expected to continue rising in different parts of the world the next year. In this article, we are going to make predictions about air and ground transportation costs for 2016.

Most likely that air and ground transportation costs will modestly grow the next year, according to the data provided by The American Express Global Business Travel Forecast 2016. Now, let’s make the deep analysis of the situation and try to realize why this is going to happen.

Without a doubt, the transportation industry depends on fuel costs so much. So, we can conclude that if fuel costs are constantly decreasing then transportation costs have to lower as well. Nevertheless, this doesn’t happen at present. Why? In fact, this situation can be explained in numerous ways. As the saying goes “Supply creates its own demand.” Therefore, when we analyze the transportation markets we will see that both air and ground transportation services are highly demanded in different regions of the world these days. Moreover, the demand is growing year after year. As a result, the prices on transportation services are increasing as well.

Obviously, the global economy has a huge impact on transportation and travel industries. Today’s data show that the global economy grows slowly. That’s why we can predict that the global demand for travel will grow slowly as well. Today, the economy of the United States shows fast development. If the situation with the US economy goes on the demand for travel and transportation services will probably grow in this country the next year. So, we can predict that transportation costs in the United States will increase either.

The level of competition is considered to be another important factor that has an influence on transportation rates. So, the higher level of competition in transportation industry is – the lower transportation rates are. As we can see, travel and transportation industries are highly competitive in developed countries at the moment. This will certainly have an impact on transportation costs.

It goes without saying that the travel industry is changing rapidly these days. So, how do transportation costs will react to these changes? The Vice President of American Express Global Business Travel, Caroline Strachan, has recently expressed her opinion on the current changes in the global tourism industry. As she has said, the new era in the global travel industry (it is also known as digital era) has already begun. So, those companies which operate in travel industry have a lot of challenges today.

For example, mobile booking channels have become a trend in the travel industry. Today, people can easily book airline tickets, sightseeing tours and hotels from their mobile devices. It is worth saying that this trend is especially popular business travelers. However, the number of travelers who prefer to take advantage of mobile booking systems is constantly growing. Obviously, in order to survive in the tourism industry travel agencies have to adapt their businesses to these new changes and innovations as soon as possible.

We can easily make a conclusion that the global tourism industry will continue to evolve the next year. Of course, it is still unknown how these changes will influence transportation costs in the nearest future. However, Caroline Strachan has made some predictions for the next year. She says that most likely that global travel prices will increase moderately in 2016. Time will tell!