Global business travel and events prices appear to be moderating following the dramatic increases seen in recent years. The 2025 Global Business Travel Forecast, recently published by CWT, the business travel and meetings specialist, and the Global Business Travel Association (GBTA), the world’s largest business travel trade organization, reveals 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, according to the report, which uses anonymised data generated by CWT and GBTA, with publicly available industry information, and econometric and statistical modelling developed by the Avrio Institute.
“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,” said Patrick Andersen, CWT’s president & chief executive officer.
Suzanne Neufang, CEO of GBTA, 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. At GBTA, our goal is to empower travel buyers and suppliers with the knowledge they need to adapt their strategies effectively in this shifting landscape.”
Air
In 2023, the global average ticket price (ATP) was US$688, representing a slight decline of -1.6% from the previous year.
Europe, Middle East, and Africa (EMEA) recorded an ATP of $785 last year, the highest of any region. North America (NORAM) was the region that saw the steepest growth rate, with the ATP climbing +4.3% to US$777. Conversely, the ATP in Asia-Pacific (APAC) slumped -7% in 2023 to $488, following a meteoric post-pandemic rise the year before.
Demand for flights remains strong globally. A record 5 billion air passengers are expected in 2024, according to IATA, surpassing the 4.5 billion peak in 2019. Meanwhile, supply chain constraints such as aircraft production issues and delays, as well as a focus on profitability, will also keep prices high.
The forecast indicates global ATP will increase to US$701 (+1.9%) in 2024 and US$705 (+0.6%) in 2025. NORAM is expected to record the sharpest increase globally this year with the ATP reaching US$804 (+3.5%), followed by US$808 (+0.5%) in 2025. The ATP in Latin America (LATAM) is forecast to climb to US$673 (+2.6%) in 2024, and US$684 (+1.6%) in 2025.
In EMEA, the ATP is projected to increase to US$797 (+1.5%) in 2024 and US$808 (+1.4%) in 2025, reflecting moderate growth amidst inflationary pressures. For Asia-Pacific (APAC), the ATP is expected to rise to US$677 (+2.3%) in 2024, and to US$688 (+1.6%) in 2025 as the region continues to ramp up intra-regional travel.
Hotel
The global average daily room rate (ADR) rose +3.9% in 2023 to $158, after a +30% rise in 2022. LATAM saw the biggest pricing gains in 2023, with the ADR increasing +10.7% to US$93. APAC was not far behind, recording an ADR increase of +7.4% to US$131.
Occupancy levels recovered to pre-pandemic levels in some markets, while the benefits from group business travel for meetings and events. 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 US$162 in 2024 and a further +1.9% to US$165 in 2025.
ADRs in LATAM are projected to climb to US$102 (+9.7%) in 2024 and US$110 (+7.8%) in 2025, owing to various factors including healthy domestic and intraregional travel demand and broader inflation trends in the region. The ADR growth in APAC is expected to cool, reaching US$136 (+3.8%) this year and US$139 (+2.2%) next year. Smaller increases are anticipated in EMEA and NORAM as leisure demand softens.
Ground transportation
Car rental companies are offering greater versatility, including airport and railway transfers, as well as one-way intercity transfers. Meanwhile, the cost of buying and operating cars is easing, and fleet concerns have stabilised, so suppliers are keeping rates in check, to stimulate demand.
Global car rental prices rose +3% to US$44.30 per day in 2023. LATAM saw the most pronounced increase, with prices shooting up +14.2% to an average of US$35.30 per day. NORAM and EMEA saw more modest increases, with prices rising to US$55.60 per day (+1.3%) and US$48.80 per day (+2.5%), respectively.
Looking ahead, global price growth in 2024 will likely be tempered, slowing to +2.5%, with an average daily rate of $45.40. A similar growth rate of +2.4% is predicted for global rates in 2025, with prices rising to US$46.50. LATAM is forecast to continue seeing sharp price gains of +11% in 2024 and +7.9% in 2025. On the flip side, APAC car rental rates are trending downwards, with prices expected to drop significantly by -6.8% in 2024, followed by a further -3.4% reduction in 2025.
Meetings and events
The meetings and events sector has rebounded strongly post-pandemic, with heightened demand for in-person engagements. In 2023, the average daily cost per attendee fell to US$155, down from US$160 in 2022, representing a -3.1% decline. This decrease can be attributed to a shift in the types of meetings being held. Many organisations opted for smaller, more business-focused meetings, often without costly incentive components, to manage budgets more effectively. This focus on cost control, including selecting more affordable venues and destinations, helped offset rising accommodation and F&B prices.
Looking forward, the average daily cost per attendee is projected to increase to US$162 in 2024, a +4.5% rise from 2023, and to approximately US$169 in 2025, an additional +4.3% increase. This upward trend reflects the sector’s continued recovery and growing appetite for larger and more complex in-person events. As organisations anticipate rising costs, they are advised to plan with a 12-month horizon and consolidate travel and meetings spending to enhance negotiating leverage.
Helping companies assess the impact on their business travel spend
To help businesses better understand how these price changes might impact their travel budgets, CWT has created a Forecast Calculator based on data from the report. The tool allows organisations to visualise and quantify how predicted price fluctuations across airfares, hotel rates, ground transportation, and meeting costs might influence their travel programmes. Leveraging forecast projections, the Forecast Calculator provides a personalised assessment of travel spend, tailored to each organisation’s unique travel patterns and objectives. [Source CWT and Global Business Travel Association (GBTA)]
