Business travelers can expect more perks when flying in 1998

(CNN) -- Millions of Americans will again take to the skyways and highways in 1998 for what promises to be another record-breaking year in the travel industry. But what's good for the industry isn't always good for the traveler.

The number of trips Americans take by air is on the rise -- from 600 million in 1996 to a projected 1 billion in 2000, according to Travel & Leisure magazine associate editor Laura Begley. But airfares are also going up by 5 to 6 percent in 1998, along with the cost of a car rental and a hotel room. Restaurant costs are also expected to move up 2 to 3 percent.

Experts say leisure travelers will absorb the higher costs, but businesses are expected to streamline.

"Companies are looking at the cost of travel and saying, 'We have to get much better control over these expenditures,'" said Eric Altschul of American Express. "So that's going to drive travel managers to develop new strategies...."

One cost-saving measure sure to become popular is automated expense reports. More travelers will record expenditures over the computer, saving both time and money.

Managing rising costs could become a major headache, but CNN business travel consultant Chris McGinnis said that the travel industry will pay more attention to the business travelers in the year to come.

"We're going to see a lot more attention paid to the business traveler," he said, "the one that's really paying the freight on all these flights. Those that are paying the higher fares are going to get preferential treatment."

McGinnis predicted business-class seating will be roomier as newly built planes show up on airport runways. And standard business class seating will be more functional -- with in-flight connections for laptops and individual movie screens where you control the play button.

"You'll also be able to get better Internet connections when you're on the plane," McGinnis said. "You may not even have to have your laptop anymore to be able to read your email from the plane."

Websites like the Internet Travel Network make it easier to forego traditional travel agencies

The courtship between the Internet and the travel industry will continue to evolve next year. Analysts say online bookings will bring in profits near the billion dollar mark, reshaping the way travelers plan their itineraries.

"(Travelers are) looking for the empowerment to book their own travel, to have all the options available to them, to be able to find the best services that best meet their criteria," said Bruce Yoxsimer, vice president of the Internet Travel Network (ITN), which services more than 2.5 million registered users and powers CNN Interactive TravelGuide's Reservation Desk.

Internet bookings will increase in 1998, inevitably endangering the traditional role of the travel agent. Airlines will also expand their Web sites in 1998 to help ease impending labor and new equipment costs. That is good news for travelers: Dealing directly with airlines cuts out fees that some travel agents charge.

But travel agents won't become obsolete. They could, for example, take on the role of travel consultant for those travelers seeking deals on the Internet.

"Travel agencies themselves will change in terms of the way they do business, the kind of services they offer, and the value that they provide," said ITN's vice president of production, Daniel Whaley.

"For more complex reservations when we're talking about a three- or four-day sales junket around the country, you do need a travel agent," said McGinnis. "There's going to be a need for a travel agent."

England remains the number one destination for American tourists, but Asia could see a larger piece of the tourism pie

Travel agents could come in handy for international travel. England remains the top stop for Americans, but more exotic destinations such as India are becoming increasingly popular.

"There's also a lot of interest in Asia," said Begley of Travel & Leisure. "People are going to Cambodia, they're going to Vietnam."

In the United States, New York, Chicago and San Francisco hotels are already filling up fast for next year.

"Heritage tourism" will be a growing trend in the months ahead, as many families frequent historic sites across the South and eastern seaboard. Destinations like Williamsburg, Virginia and Tuskegee, Alabama, are sure to be on the list.

Baby boomers -- the 50+ market -- will make up a significant portion of the travelers, Begley said. "(But) one thing that we find interesting is that Generation X travelers are also traveling to a greater degree."

It all spells another banner year for travel in 1998.

CNN Correspondent Stephanie Oswald contributed to this report.

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