Executive Travel : Rental Car Fees Might Rise 10%-15%

A 10% to 15% increase in car rental costs is expected to push 1995 business travel costs up 2%, according to a study by Runzheimer International.

The increase would still be below the 2.7% inflation rate that is projected for next year, the study found.

The expected jump in car rental costs won’t offset inventory costs, which have surged more than 60% over two years, the consulting firm’s travel division said.

“The auto companies are requiring the rental fleets to keep cars longer, both in terms of time and mileage,” said Rolfe Shellenberger, senior consultant in travel management.

Air fare costs for business travel are expected to decline 1.5% next year as competitive pressures hold back increases for short-haul travel, he said.

Lodging costs are expected to rise 3% next year as corporations try to keep costs down and high-priced hotels face competitive pressures of their own.

The cost of meals isn’t expected to change, despite the Internal Revenue Service’s move to reduce the tax deductibility of such meals.