The global business travel industry is poised to stabilize following years of volatile price hikes, with modest growth predicted through 2024 and 2025. According to CWT’s newly released 2025 Global Business Travel Forecast, a leading business travel and meetings management specialist, and the Global Business Travel Association (GBTA), the world’s largest business travel trade organization, businesses can expect a more predictable pricing environment over the next two years.

This outlook signals a significant shift from the dramatic cost increases experienced in recent years, driven by post-pandemic recovery and supply chain constraints. The forecast report highlights that while prices will continue to rise, they will do so at a slower, more manageable pace, offering much-needed stability to corporate travel budgets.

Key Insights from the 2025 Forecast

Drawing on comprehensive data from CWT and GBTA, alongside economic modelling from the Avrio Institute, the report offers a detailed look at global business travel pricing trends across airfares, hotels, car rentals, and meetings. Here are the critical findings:

• Air Travel: The global average ticket price (ATP) for business travel is set to rise modestly in 2024 by 1.9% to $701, followed by a further 0.6% increase to $705 in 2025.
• Hotel Stays: The average daily room rate (ADR) for hotel stays is forecasted to grow by 2.5% to $162 in 2024 and another 1.9% to $165 in 2025.
• Car Rentals: The daily rental rate is expected to grow slower, with a 2.5% increase to $45.40 in 2024 and a 2.4% rise to $46.50 in 2025.
• Meetings & Events: The cost per attendee per day for meetings is projected to jump by 4.5% in 2024 to $162 and by 4.3% in 2025 to $169.

Patrick Andersen, President & CEO of CWT, noted the significance of these findings, stating, “Businesses can expect a more predictable pricing environment through 2024 and 2025, allowing for better budget planning and cost management. However, this regularity is fragile, with inflationary pressures, geopolitical factors, and sustainability concerns still influencing the market.”

Slower Price Hikes in Air Travel and Hotels Offer Stability

One of the standout findings in the report is the relatively slow increase in airfares. Global air travel is expected to remain in high demand, with the International Air Transport Association (IATA) predicting a record 5 billion passengers in 2024, surpassing the 4.5 billion peak of 2019. Despite this demand, supply chain issues and airline profitability focus will keep ticket prices elevated but stable.

The ATP in North America is forecast to see the sharpest rise, reaching $804 in 2024 (+3.5%) and $808 in 2025 (+0.5%). Latin America (LATAM) and Europe, Middle East, and Africa (EMEA) will also see modest price hikes, while Asia-Pacific (APAC), recovering from a steep drop in 2023, will see ticket prices rise by 2.3% to $677 in 2024 and by 1.6% to $688 in 2025.

Hotel prices, which rose significantly in 2022 due to pent-up demand, are also stabilizing. The global ADR grew by 3.9% in 2023 to $158 and will continue its slow rise. However, some regions like Latin America will experience higher increases due to inflation and solid domestic travel demand, with ADRs expected to grow by 9.7% in 2024 and 7.8% in 2025.

Meetings & Events Industry Sees a Steady Rebound

Post-pandemic, the meetings and events industry has seen a resurgence as businesses resume in-person gatherings. However, many organizations have shifted their approach, opting for smaller, more business-focused meetings without costly budget management incentives. This has led to a temporary decline in costs, with the average daily cost per attendee falling to $155 in 2023.

Nevertheless, with the appetite for more significant, complex events growing, the sector is expected to see a 4.5% increase in per-attendee costs in 2024, followed by a 4.3% rise in 2025. “Businesses should plan with a 12-month horizon, consolidating travel and meetings spend to strengthen negotiating leverage,” the report advises.

Car Rentals: A Competitive Market Keeps Costs in Check

The car rental industry has also undergone significant changes post-pandemic, with companies now offering greater flexibility, including airport and railway transfers. While prices rose by 3% globally in 2023, future price hikes are expected to remain moderate, with a 2.5% increase in 2024 and a 2.4% rise in 2025. LATAM will see the sharpest increases, while APAC is forecasted to experience price drops, with rental costs declining by 6.8% in 2024 and 3.4% in 2025.

Strategic Approaches to Business Travel in 2025

Despite the stabilization in travel costs, businesses are urged to stay vigilant. Geopolitical volatility, sustainability pressures, and inflation continue to impact pricing dynamics worldwide. GBTA’s CEO, Suzanne Neufang, emphasized that the next few years will require a “strategic approach that balances cost management with sustainability, innovation, and responsiveness to market changes.”

To aid businesses in adapting to these changes, CWT has developed a Forecast Calculator that allows organizations to predict how price fluctuations might affect their travel programs. This tool provides tailored assessments, helping companies navigate the evolving business travel landscape.

Looking to the Future: Three Scenarios for Business Travel

To mark the 10th edition of the Global Business Travel Forecast, CWT and GBTA will release a supplementary report envisioning three potential scenarios for business travel between now and 2040—Base, Boom, and Bust. These scenarios will explore how megatrends, including technological advancements, demographic shifts, and sustainability pressures, will shape the future of business travel.

In each scenario, businesses are encouraged to remain agile and innovative, adapting their strategies to harness emerging opportunities and mitigate risks in the ever-changing corporate travel landscape.

 

 

 

Written by: Soo James

 

 

 

 

 

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