Global business travel and events prices appear to be moderating following the dramatic increases seen in recent years, says the 2025 Global Business Travel Forecast, published by CWT, the business travel and meetings specialist and the Global Business Travel Association (GBTA), the world’s largest business travel trade organisation.

According to a press statement by GBTA, the report reveals that while costs will continue to rise, the pace of these increases will be notably slower through 2024 and into 2025.

Patrick Andersen

According to the report analysis, this reflects a stabilisation in market conditions and a more balanced growth trajectory. 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,” says Patrick Andersen, President & Chief Executive Officer, CWT. 

“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,” Anderson adds.

Suzanne Neufang

“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,” says Suzanne Neufang, CEO, GBTA.

According to the report, in 2023 the global average ticket price (ATP) was USD 688, representing a slight decline of 1.6 pc from the previous year. The report says that Europe, Middle East, and Africa (EMEA) recorded an ATP of USD 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 pc to USD 777. Conversely, the ATP in Asia-Pacific (APAC) slumped 7 pc in 2023 to USD 488, following a meteoric post-pandemic rise the year before.

The statement adds that 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 USD 701 by 1.9 pc in 2024 and USD 705 at 0.6 pc in 2025. 

NORAM is expected to record the sharpest increase globally this year with the ATP reaching USD 804 by 3.5 pc, followed by USD 808 by 0.5 pc in 2025. 

The ATP in Latin America (LATAM) is forecast to climb to USD 673 by 2.6 pc in 2024, and USD 684 by 1.6 pc in 2025. In EMEA, the ATP is projected to increase to USD 797 by 1.5 pc in 2024 and USD 808 by 1.4 pc in 2025, reflecting moderate growth amidst inflationary pressures. 

For Asia-Pacific (APAC), the ATP is expected to rise by 2.3 pc to USD 677 in 2024, and by 1.6 pc to USD 688 in 2025 as the region continues to ramp up intra-regional travel. 

In terms of accommodation, the global average daily room rate (ADR) rose by 3.9 pc in 2023 to USD 158, after a 30 pc rise in 2022. LATAM saw the biggest pricing gains in 2023, with the ADR increasing 10.7 pc to USD 93. APAC was not far behind, recording an ADR increase of 7.4 pc to USD 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 pc to USD 162 in 2024 and a further 1.9 pc to USD 165 in 2025.

The statement adds that ADRs in LATAM are projected to climb by 9.7 pc to USD 102 in 2024 and 7.8 pc to USD 110 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 by 3.8 pc to USD 136 this year and by 2.2 pc to USD 139 next year. Smaller increases are anticipated in EMEA and NORAM as leisure demand softens.

According to the report, 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 stabilized, so suppliers are keeping rates in check, to stimulate demand.

Global car rental prices rose by 3 pc to USD 44.30 per day in 2023. LATAM saw the most pronounced increase, with prices shooting up by 14.2 pc to an average of USD 35.30 per day. 

NORAM and EMEA saw more modest increases, with prices rising to USD 55.60 per day at 1.3 pc and USD 48.80 per day at 2.5 pc, respectively. Looking ahead, the report predicts a global price growth in 2024 will likely be tempered, slowing to 2.5 pc, with an average daily rate of USD 45.40. 

A similar growth rate of 2.4 pc is predicted for global rates in 2025, with prices rising to USD 46.50. LATAM is forecast to continue seeing sharp price gains of 11 pc in 2024 and 7.9 pc in 2025. On the flipside, APAC car rental rates are trending downwards, with prices expected to drop significantly by 6.8 pc in 2024, followed by a further 3.4 pc reduction in 2025.

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 USD 155, down from USD 160 in 2022, representing a 3.1 pc decline. This decrease can be attributed to a shift in 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 food and beverage prices. Looking forward, the average daily cost per attendee is projected to increase to USD 162 in 2024, a 4.5 pc rise from 2023, and to approximately USD 169 in 2025, an additional 4.3 pc increase. The report adds that 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 spend to enhance negotiating leverage.