As the travel market rebounds, costs are rising for the business traveler on almost every front. The airlines are getting a handle on the capacity issues and fuel costs and are increasing their ticket prices, and hotel and rental cars are following suit on higher demand. While good for the industry, the business traveler will be feeling the pinch in the pocketbook.

A recent report from consultant American Express Business Travel projects annual increases in 2006 of up to 8% for airfares and car-rental rates. High-end hotel rooms will increase by up to 5%, the report says. Meanwhile, general inflation is expected to be up just 2.3%, according to the latest consensus of the National Association for Business Economics.

Caleb Tiller, a spokesman for the National Business Travel Association, which represents corporate travel managers, says his members are adjusting to the new world of expensive travel. “They’re adjusting budgets accordingly and looking for ways to contain costs,” Tiller says.

The article in USA Today goes on to break down the cost increases in each segment of the marketplace. It is a good read if you are a frequent business traveler.