Following a year marked by unprecedented 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, but 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 by the Global Business Travel Association (GBTA) and travel management company Altour. The report examines the economic forces reshaping the cost of business travel globally, including energy prices, labor 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 Suzanne Neufang, CEO of GBTA. “Business travel may need to weather more uncertainty through this year. In this environment, a well-managed travel programme is essential. Realising travel’s full value will depend on managed programmes backed by strategic foresight, data and decision-making.”
“The most acute impacts of the early 2026 energy-related inflation were beginning to ease, but we are likely to see elevated fuel-related inflation for the remainder of the year and the operating environment for business travel is not returning to what it was before,” said Michael Boult, senior vice president and chief commercial officer of Altour.
“For organisations, the priority now is turning volatility into a more manageable and predictable planning discipline. That means using better forecasting, stronger supplier strategies, enforcing policies and gaining real-time visibility across categories and markets to keep business travel moving.”
Energy and labor remain the dominant cost drivers
The forecast identifies energy prices and labor 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 a sharp increase in crude oil and jet fuel prices and impacting airline operating costs worldwide.
Although fuel prices have retreated from peak levels, labor costs continue to rise across airlines, hotels, ground transportation and events and meeting providers through multi-year agreements, wage inflation, and ongoing workforce shortages.
Airfares face the greatest pricing pressure
Air travel remains the most volatile category in the forecast, reflecting continued exposure to fuel costs, aircraft shortages, labor expenses and premium-cabin constraints.
- On average, global airfare is forecast to reach US$756, up 4.7% versus 2025. Economy fares are projected to rise 8.7% in 2026 to US$536.
- Premium fares (e.g. premium economy, business class and first class) are expected to increase 9.5% to US$4,488, 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.
- 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 US$168, followed by a more moderate 1.8% increase in 2027 to US$171.
- While demand remains robust, a record global hotel construction pipeline is helping contain rate growth.
- Regional variation remains significant for 2026, with Latin America (9.5%) expected to record the strongest hotel pricing growth as demand outpaces new hotel development.
- This is followed by APAC (5%), which continues to benefit from strong demand recovery in key markets, and NORAM (3.2%).
- EMEA (0.6%) remains the most stable hotel market in the forecast, driven by softer demand.
Ground transportation stabilises
Car rental, the largest component of managed ground transportation, saw rates decline in 2025. Average rates are forecast to increase 3.6% in 2026 to US$46.50 per day before dropping 0.9% in 2027 to US$46.10.
Among global regions, APAC rates in 2026 are expected to be highest at US$57.70 per day, up 4%. Fleet availability and vehicle supply are stabilising, helping moderate pricing pressure across most regions.
Meetings and events 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, F&B, production and labor costs continue to put pressure on program budgets.
- Cost per attendee per day is forecast to increase approximately 3.0% to US$263 in 2026 and 1.5% to US$267 in 2027.
- F&B and production expenses remain the primary drivers of meeting cost inflation.
Corporate travel managers should plan for relief, not a reset
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, labor shortages and geopolitical uncertainty are expected to result in a more costly 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.
The full report can be found here.
