Global business travel prices are forecast to remain high through the remainder of 2026 before beginning to moderate in 2027, according to the new 2027 Global Business Travel Forecast, from the Global Business Travel Association and ALTOUR. Despite easing price pressure next year, travel costs are unlikely to return to prior levels, as some issues forcing prices higher have become long-term factors
The impact of the Iran war energy shock and labor costs will remain significant forces behind business travel pricing through the year. Although fuel prices have dropped from their peak, labor costs continue to rise across airlines, hotels, ground transportation and events and meeting providers, thanks to multi-year agreements, wage inflation and ongoing workforce shortages
On average, global airfare is forecast to reach $756 this year, a 4.7 percent increase over 2025. Economy fares are projected to rise 8.7 percent in 2026, while premium economy, business class and first class will see an increase of 9.5 percent, as the result of pressure on long-haul and premium travel markets. In 2027, airfare increases are expected to moderate, with an average overall increase of 1.5 percent
Regionally, capacity constraints, higher operating costs and ongoing aircraft delivery delays will drive higher fares in North America and EMEA. In contrast, in Latin America capacity growth is on pace with demand, keeping airfare increases in line relative to other regions
Global hotel average daily rates are predicted to jump 3.7 percent in 2026 to $168, with a more moderate increase of 1.8 percent in 2027 to $171. In the face of strong demand, the growth in ADR is being offset by a record global hotel construction pipeline
Regionally, Latin America will post the strongest hotel pricing growth in 2026 as demand outpaces new hotel development, followed by APAC and NORAM. The growth in the EMEA hotel market remains the most stable, driven by softer demand
“Companies continue to invest in face-to-face connections, customer relationships and growth despite higher costs and greater complexity,” notes Suzanne Neufang, CEO of GBTA. “Business travel may need to weather more uncertainty through this year. In this environment, a well-managed travel program is essential. Realizing travel’s full value will depend on managed programs backed by strategic foresight, data and decision-making.”
