Global business travel costs are forecast to moderate following the dramatic rises in recent years with “modest” increases in 2025.
The projection came in a global business travel forecast issued by travel management firm CWT and the Global Business Travel Association (GBTA).
The report suggests that while costs will continue to rise, the pace of these increases will be notably slower through 2024 and into 2025.
This reflects a stabilisation in market conditions and a more balanced growth trajectory, it said.
CWT president Patrick Andersen said: “While the past few years have seen significant volatility in travel costs, our latest data suggests a period of relative stability is on the horizon.
“Businesses can expect to navigate a more predictable pricing environment through 2024 and 2025, allowing for better budget planning and cost management.
“However, price regularity is fragile. The focus on geopolitical factors, inflationary pressures and ESG concerns remains critical.”
GBTA chief executive Suzanne Neufang added: “The research shows that while a more stable period for travel costs is likely, businesses should remain vigilant to evolving pricing dynamics influenced by global trends.
“The next few years will require a strategic approach that balances cost management with sustainability, innovation, and responsiveness to market changes.”
The forecast indicates global average airline ticket prices will increase 1.9% to $701 his year and to $705 in 2025.
The rate in Europe, Middle East and Africa (EMEA) is projected to increase to $797 in 2024 and $808 in 2025, reflecting moderate growth amidst inflationary pressures.
The global average daily room rate (ADR) rose 3.9% in 2023 to $158, after a 30% hike in 2022.
“Occupancy levels recovered to pre-pandemic levels in some markets,” the study said. “However, there is still a lack of new hotel supply.
“These factors will continue to support elevated prices, with the global ADR forecast to +2.5% to $162 in 2024 and a further +1.9% to $165 in 2025.
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