SINGAPORE, 6 August 2026: Following a year marked by energy-market disruption and rising operational costs, global business travel prices are expected to remain elevated through the remainder of 2026 before beginning to moderate in 2027, with variations expected across regions.
Pricing pressures are expected to ease gradually next year. Still, travel costs are unlikely to return to prior levels, as many of the forces driving higher prices have become long-term features of the industry rather than short-term disruptions.
This is according to the new 2027 Global Business Travel Forecast, released last week by the Global Business Travel Association (GBTA) and ALTOUR. The report examines the economic forces reshaping the cost of business travel globally, including energy prices, labour costs, aircraft supply constraints, currency fluctuations and other factors.
“Business travel remains a powerful indicator of business confidence. Companies continue to invest in face-to-face connections, customer relationships and growth despite higher costs and greater complexity,” said GBTA CEO Suzanne Neufang. “Business travel may need to weather more uncertainty through this year. In this environment, a well-managed travel program is essential. Realising travel’s full value will depend on managed programs backed by strategic foresight, data and decision-making.”
The forecast identifies energy prices and labour costs as the two most significant forces shaping business travel pricing. The 2026 closure of the Strait of Hormuz triggered the largest oil supply disruption on record, driving sharp increases in crude oil and jet fuel prices and affecting airline operating costs worldwide. Although fuel prices have retreated from peak levels, labour costs continue to rise across airlines, hotels, ground transportation, and event and meeting providers due to multi-year agreements, wage inflation, and ongoing workforce shortages.
Airfares face pricing pressure
Air travel remains the most volatile category in the forecast, reflecting continued exposure to fuel costs, aircraft shortages, labour expenses and premium-cabin constraints.
On average, global airfare is forecast to reach USD756, up 4.7% from 2025. Economy fares are projected to rise 8.7% in 2026 to USD536.
Premium fares (e.g. premium economy, business class and first class) are expected to increase 9.5% to USD4,488, reflecting ongoing pressure on long-haul and premium travel markets.
In 2027, airfare increases are expected to slow to 1.5% for overall fares, 1.1% for economy fares, and 2.2% for premium fares.
North America and EMEA are expected to experience some of the strongest average airfare increases in 2026, driven by capacity constraints, higher operating costs and ongoing aircraft delivery delays.
In contrast, Latin America is seeing capacity grow alongside demand, helping moderate airfare increases relative to other regions.
Global hotel growth masks widening regional gap
Global hotel average daily rates (ADR) are expected to increase 3.7% in 2026 to USD168, followed by a more moderate 1.8% increase in 2027 to USD171.
Ground transportation Stabilises
Car rental, the largest component of managed ground transportation, saw rates decline in 2025. Average rates are forecast to increase by 3.6% in 2026 to USD46.50 per day, then drop by 0.9% in 2027 to USD46.10 per day.
Among global regions, APAC rates in 2026 are expected to be the highest at USD57.70 per day, up 4.0%. Fleet availability and vehicle supply are stabilising, helping moderate pricing pressure across most regions.
Event budgets rise despite cost pressures
Meetings and events budgets are expected to increase through 2026 and 2027. While negotiated group hotel rates remain relatively stable, food and beverage, production and labour costs continue to put pressure on program budgets.
Cost per attendee per day is forecast to increase approximately 3.0% to USD263 in 2026 and 1.5% to USD267 in 2027.
Food and beverage and production expenses remain the primary drivers of meeting cost inflation.
While travel cost growth is expected to moderate in 2027, prices are unlikely to return to 2025 levels. Structural factors, including aircraft delivery delays, sustainable aviation fuel (SAF) requirements, labour shortages, and geopolitical uncertainty, are expected to lead to a costlier travel environment.
The forecast also highlights significant regional and category differences, underscoring the need for more targeted travel planning. Rather than relying on global averages, travel buyers should evaluate costs by region, market and category, as pricing drivers vary considerably around the world.
Access the full report here for more detailed information, including regional breakdowns and category-specific analysis.
(Source: GBTA)
