Business travel prices are set to remain high through the end of 2026, with only modest relief expected in 2027.
That is the key finding from the new 2027 Global Business Travel Forecast, released by the Global Business Travel Association and ALTOUR on 28 July 2026.
The report tracks airfare, hotels, ground transport, meetings and events. It also examines the forces reshaping travel budgets, from energy prices and labour costs to aircraft shortages, delayed deliveries and currency movements.
For corporate travel buyers, the message is clear. Cost growth may slow next year, but prices are unlikely to fall back to 2025 levels.
Relief is coming. A full reset is not.
Energy and labour keep costs elevated
Energy and labour remain the two biggest cost drivers across global business travel.
The near closure of the Strait of Hormuz in 2026 sharply reduced oil and gas shipments through the vital Gulf waterway. That pushed crude oil and jet fuel prices higher, lifting airline operating costs worldwide.
The International Energy Agency described the event as the largest oil-supply disruption in history. It said flows through the strait fell from about 20 million barrels a day before the conflict to an average of 2.7 million barrels a day across March, April and May 2026.
The shock was especially serious for aviation. The Middle East was the world’s largest source of internationally traded aviation fuel in 2025.
Refiners in the United States, Europe and West Africa increased production in response. Their additional output helped ease concerns over jet-fuel supply shortfalls.
Even so, the market remains exposed to geopolitical risk and tight supply.
Fuel is only part of the problem.
Labour costs continue to rise across airlines, hotels, car-rental businesses and event suppliers. Wage inflation, staff shortages and multi-year employment agreements are keeping pressure on operating costs even as fuel prices ease from their peaks.
GBTA chief executive Suzanne Neufang said, “Business travel remains a powerful indicator of business confidence.”
The forecast supports that view. Companies are still investing in face-to-face meetings, customer relationships and growth, despite higher costs and more complex conditions.
Airfares face the greatest pressure
Air travel remains the most volatile category in the forecast.
The global average airfare is expected to reach US$756 in 2026, up 4.7 per cent from 2025.
Economy fares are forecast to rise 8.7 per cent to US$536. Premium fares, including premium economy, business class and first class, are expected to increase 9.5 per cent to US$4,488.
That rise will be hard to ignore for companies that frequently travel long-haul.
Premium capacity remains tight. Aircraft deliveries are delayed. Fuel and labour costs remain high. Demand for business class has also stayed firm.
In plain terms, the front of the aircraft is still taking a large bite from the corporate budget.
The outlook should improve in 2027.
Overall airfare growth is forecast to slow to 1.5 per cent. Economy fares are expected to rise 1.1 per cent, while premium fares should increase 2.2 per cent.
North America and EMEA are expected to record some of the strongest average airfare increases in 2026. Capacity constraints, higher operating costs and aircraft delivery delays remain the main drivers.
Latin America offers a different picture. Capacity is growing alongside demand, which should help limit fare increases compared with other regions.
Hotel rates rise at different speeds
The global average daily hotel rate is forecast to rise by 3.7 per cent to US$168 in 2026.
It is then expected to increase by a more moderate 1.8 per cent to US$171 in 2027.
Strong demand is supporting hotel rates, but a record global construction pipeline is adding supply. That should help contain overall price growth.
The regional picture varies sharply.
Latin America is forecast to record the strongest hotel-rate growth in 2026 at 9.5 per cent, as demand continues to outpace new development.
Asia-Pacific follows at 5 per cent, supported by a strong recovery in key markets. North America is forecast to rise by 3.2 per cent, while EMEA is expected to remain the most stable region at 0.6 per cent due to softer demand.
For Australian travel buyers, the Asia-Pacific figure deserves close attention.
Regional hotel rates are rising faster than the global average. Asia-Pacific is also expected to record the world’s highest average daily car-rental rate in 2026.
A global benchmark may therefore understate the true cost of a travel program heavily focused on Asian markets.
Ground transport starts to stabilise
Car rental, the largest part of managed ground transport, is beginning to show more stability.
Average daily rates are forecast to rise 3.6 per cent to US$46.50 in 2026, before falling 0.9 per cent to US$46.10 in 2027.
Asia-Pacific is expected to remain the most expensive region, with an average daily car-rental rate of US$57.70 in 2026, up 4 per cent.
Fleet availability and vehicle supply are improving across many markets. That should help ease some pricing pressure.
For finance teams, however, small daily increases can still add up to high annual costs when spread across thousands of trips.
It is the sort of “minor” expense that, as finance teams soon discover, can acquire a postcode of its own.
Meetings keep getting more expensive
Meetings and events budgets are also expected to rise through 2026 and 2027.
The average cost per attendee per day is forecast to increase by about 3 per cent to US$263 in 2026. It should then rise another 1.5 per cent to US$267 in 2027.
Negotiated group hotel rates remain relatively stable. Food and beverage, production and labour costs are the main sources of inflation.
That creates a familiar challenge for corporate planners.
Companies still value face-to-face meetings, but every part of the program now costs more. Catering, technicians, staging, transport and venue support can all push budgets higher.
Cutting meetings may save money in the short term. It can also weaken sales, staff engagement and customer relationships if handled poorly.
Better planning will matter more than ever
ALTOUR chief commercial officer Michael Boult said the priority was “turning volatility into a more manageable and predictable planning discipline.”
That means stronger forecasting, better supplier agreements, tighter travel policies and more visibility across spending categories and markets.
Travel managers should also review advance-purchase rules, unused-ticket recovery, preferred-supplier deals and traveller compliance.
The forecast makes another important point. Global averages are useful, but they are not enough.
Airfare, hotel and transport costs vary widely by region. Buyers should study the markets they actually use, the cabins their people actually book and the dates on which they actually travel.
A global average may look tidy in a board paper. It will not negotiate a better room rate in São Paulo or find an extra business-class seat to London.
Sustainable aviation fuel requirements, labour shortages, delayed aircraft deliveries and geopolitical uncertainty are also becoming long-term features of the market.
These pressures will not disappear simply because inflation slows.
The best response is not to stop travelling. It is to travel with more purpose, stronger data and fewer surprises.
Relief ahead, but no return to old prices
The GBTA forecast offers cautious optimism rather than celebration.
Cost growth should ease in 2027, but corporate travel will remain more expensive than it was in 2025.
Demand remains resilient. Face-to-face business still matters. Companies continue to invest in travel because it supports sales, relationships and growth.
The challenge is to protect that value while managing a higher and less predictable cost base.
For travel buyers, 2027 may bring some breathing room.
The bill, however, has learned to travel first class.
Complete regional breakdowns and category-specific analysis are available in the GBTA 2027 Global Business Travel Forecast.
Energy-market and Strait of Hormuz figures were checked against the International Energy Agency’s analysis.
By: Jill Walsh – © 2026.
Read Time: 6 minutes.
Author Bio:
Jill Walsh has always kept a pen close and a suitcase closer. She started out on media releases, then learned the trade properly by escorting press trips around the world, discovering which stories travel well and which need a sharper edit.
Before long, she wasn’t just promoting destinations; she was representing them, translating civic ambition and local pride into words people actually wanted to read. These days, semi-retired and happily so, Jill has traded departure boards for deadlines, joining old friend and colleague Stephen at Global Travel Media on a casual basis.
Her patch is the business end of wanderlust: balance sheets, route maps, tender wins and the numbers that quietly decide where travellers go. She writes with dry humour, clean prose and an old-school respect for facts a steady voice when the market starts shouting.
