American Express Business Travel has released its 2006 Global Business Travel Forecast.

Published air and hotel prices worldwide are expected to rise considerably next year as business travel demand recovers in step with the global economy. Regions of strong business travel demand include Europe, North America and Japan, Asia-Pacific and Australia, with significant traffic in the transpacific and transatlantic markets.

American Express 2006 Survey

This survey found that executives expect higher spending in 2006 but also see greater scrutiny of T&E and purchasing costs.

The poll of more than 250 companies found that nearly 30 percent reported that their burning issue this year will be employee compliance.

Many are confident about their ability to control expenditures, but have stepped up their watch over employees and one in five report corporate disciplinary actions against employees who have strayed from procurement or T&E policy.

Nearly 75 percent of companies surveyed are scrutinizing purchasing processes and approvals more carefully. Sixty-three percent are reviewing T&E costs more closely.

There are concerns about possible hikes in telecommunication, international travel and meetings costs.

One reason executives are intensifying their watch over employee expenditures is the Sarbanes-Oxley Act of 2002, governing financial reporting. Another reason is well-publicized reports of expenditure abuse.