A new report on business travel and events has suggested that after years of sharp price increases, costs are expected to stabilise over the next two years. According to the 2025 Global Business Travel Forecast, published by travel specialist CWT and the Global Business Travel Association (GBTA), the rate of price rises will slow significantly, offering companies greater predictability in planning budgets.
While costs for airfares, hotels, car rentals, and meetings will still increase, the pace is expected to be far more moderate through 2024 and 2025. This follows the volatile trends seen in recent years, when the global pandemic and supply chain disruptions drove travel prices upwards.
CWT’s President and Chief Executive Officer, Patrick Andersen, said the report signals a more stable pricing environment. “Businesses can expect a more predictable landscape for budgeting through 2024 and 2025, though ongoing geopolitical and inflationary pressures could still disrupt this regularity,” he warned.
Suzanne Neufang, GBTA’s CEO, echoed the sentiment of stability but urged caution. “The research points to a likely slowdown in travel cost increases, but businesses must remain mindful of evolving global trends. A strategic approach will be necessary to balance cost control with sustainability and innovation.”
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GLOBAL YEAR-OVER-YEAR BUSINESS TRAVEL & EVENTS PRICE CHANGES ($USD) |
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(actual) 2023 |
(forecasted) 2024 |
(forecasted) 2025 |
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Air – Average Ticket Price |
-1.6% $688 |
+1.9% $701 |
+0.6% $705 |
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Hotel – Average Daily Rate |
+3.9% $158 |
+2.5% $162 |
+1.9% $165 |
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Car – Daily Rental Rate |
+3.0% $44.30 |
+2.5% $45.40 |
+2.4% $46.50 |
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Meetings & Events – Average |
– 3.1% $155 |
+4.5% $162 |
+4.3% $169 |
Air travel stabilisation
Air travel prices are set to see a modest rise of 1.9% in 2024, with the global average ticket price (ATP) forecast to reach $701 (£565). This represents a slowdown from the previous years, where ATP fluctuated dramatically across regions. In 2023, airfares saw a slight drop globally, down 1.6% to $688 (£554), though regions such as North America experienced a notable 4.3% increase to $777 (£626).
The forecasted increases for 2025 are even smaller, with prices expected to rise just 0.6%, reaching $705 (£569). Europe, Middle East and Africa (EMEA) will continue to see relatively higher fares compared to Asia-Pacific (APAC), where prices are still recovering after significant post-pandemic dips.
Hotel rates rise
Hotel prices also show signs of moderation. The average daily room rate (ADR) rose by 3.9% in 2023 to $158 (£128), following a significant 30% rise in 2022. In the coming years, ADR growth is expected to slow, with rates forecast to rise by 2.5% in 2024 and 1.9% in 2025. However, Latin America will see more pronounced increases due to ongoing inflationary pressures in the region.
Meetings and events rebound
Meetings and events are expected to become more expensive as organisations return to in-person gatherings. The average daily cost per attendee fell by 3.1% in 2023 to $155 (£125), but this is forecast to rise by 4.5% in 2024 to $162 (£130) and again by 4.3% to $169 (£136) in 2025. Companies are advised to consolidate their travel and event spending to better negotiate prices.
Strategic planning urged
To help businesses anticipate how these price changes could impact their budgets, CWT has launched a Forecast Calculator, allowing companies to evaluate cost projections based on their travel needs.
A special supplement to the report, set to be released in the coming weeks, will explore how technological, demographic, and geopolitical factors could reshape business travel up to 2040.