The high cost of fuel will hit corporate business travel's pocket book in more ways than one, according to Runzheimer International, a Wisconsin-based management consulting firm specializing in travel management information. Runzheimer's business travel cost forecast predicts overall travel costs will increase 12% in 2006. From car rentals to airfares to the price of a meal, Runzheimer expects the increased price of fuel to contribute to a swell in travel costs.

On the airfare front, the increase in the already high cost of jet fuel post-Hurricane Katrina is projected to put increased pressure on the already-stressed airline industry. According to the Air Transport Association, jet fuel prices increased an average 36 cents during the last week in August, from $1.91 a gallon on August 23 to $2.27 a gallon. Not coincidentally, some major carriers raised their nationwide fares $10 to $30 per roundtrip ticket last week.

Because food is often delivered by truck on a daily basis, the price of a meal is often more sensitive to fuel pricing than lodging or car rental prices. Runzheimer projects that these and other factors will cause meal costs to increase 11% during the next year.

Rental car pricing has been and is expected to continue rising during the next year. Contributing factors include increasing fleet costs and gas pricing that continues to set record high levels in the U.S. Often used as a travel mode alternative, car rental will likely not be advantageous in the upcoming year.

Runzheimer expects travel managers to place increased emphasis on supplier negotiations and look to other innovative techniques to counter rising travel prices such using non-standard services in lodging and transportation, like purchasing company-owned "dormitories."

"In addition to supplier negotiations, travel managers will likely take a closer look at their travel policies," says Phyllis Schumann, travel management consultant with Runzheimer International, "travel managers are realizing that in order for guidelines or caps for individual components to be effective, they must be geographically-specific. Just as we have seen gas prices fluctuate differently in different locations, so do travel prices."