Airfares, accommodation, and car rental prices are expected to rise by as much as 10% as the global economy gradually improves after the GFC.

According to American Express Business Travel who recently released its forecasts, domestic and international airfares are expected to rise 5-10% in 2011.

They also predict mid and high range hotel rates to climb up to 7%, with Australia being affected more than the rest of the Asia Pacific region.

“Pricing power will swing back to air and hotel suppliers for the first time in two years in 2011 as more competition for limited seats on planes and increased occupancy levels at hotels are expected,” Robert Tedesco, vice president of global business partnerships and advisory services for AmEx BT told Travel Today.

TPDD's Executive Officer, Doug Ryan, said there were many factors in play that affected the international market, including the ever-present Aussie dollar, and the UK's recent hike in departure tax to over AUD$200.

"Out of Europe flights are looking pretty good (at the moment). Opening up Singapore will help the international market and NZ has reacted well where we've spent big bucks.He said the foreseeable future domestically looks promising.

"I don't think the domestic market will be affected (by the price hike). A 10% increase on a $119 flight won't make much difference," he said.

Mr Ryan said regional marketing will also play an important role in the near future.

"We're having negotiations with online last minute sites. TV, radio, and competitions to win a holiday provide a driver. People register on the site and they're added to a database to enable us to sell the region," he said.