Companies can expect more manageable business travel expenses in 2024. However, costs will still increase, but not as steeply as in the last two years.
A comprehensive report titled the “2025 Global Business Travel Forecast,” published by global travel management company CWT and the Global Business Travel Association (GBTA), has revealed a stabilizing trend in business travel costs after years of dramatic price increases.
While rising business trip prices will continue into 2024 and 2025, the growth rate is expected to moderate, offering some relief to corporate travel planners.
Stabilizing Business Travel Price Trends
According to the report, forecasts indicated that global business travel costs will rise modestly in 2024 and 2025, signaling a shift toward market equilibrium.
The report attributes this moderation in business travel price trends to improving market conditions, easing supply chain pressures, and more sustainable demand growth.
CWT President and CEO Patrick Andersen emphasized, “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.”
Suzanne Neufang, CEO of GBTA, echoed these sentiments: “A more stable period for travel cost updates is likely, but businesses should remain vigilant to evolving pricing dynamics influenced by global trends.”
Business Travel Costs Set to Rise, but at a Slower Pace
The report outlines several key insights into the business trip expense forecast for 2025.
In 2024, airfares are projected to increase by 1.9% to an average of $701, while a smaller 0.6% rise is expected in 2025, pushing the average global airfare to $705.
Similarly, hotel rates will experience modest growth, rising 2.5% to $162 in 2024 and 1.9% to $165 in 2025.
These modest increases reflect a stabilizing global economy, where demand for air travel and accommodation remains robust but less volatile than in previous years.
The forecast also highlights a gradual return to pre-pandemic levels of occupancy in the hotel sector, though supply chain issues, particularly in construction, are still keeping prices elevated.
Source: CWT/GBTA 2025 Global Business Travel Forecast
Moderate increases in travel expenses are also forecast for ground transportation and meetings.
Rental car prices, which saw significant hikes during the pandemic, are expected to increase by 2.5% in 2024 and 2.4% in 2025, reflecting easing supply chain constraints.
Meanwhile, the daily cost for meetings and events is projected to rise 4.5% in 2024 and 4.3% in 2025, as demand for in-person events continues to recover strongly post-pandemic.
Tools for Managing Business Trip Costs
To help companies navigate these shifting business travel price trends, CWT has developed a forecast calculator. This tool enables organizations to assess how projected price changes across airfares, hotels, and ground transportation might impact their individual travel budgets.
With this resource, businesses can better plan and manage their corporate travel cost updates in the years to come.
Screengrab from the official website of the CWT
Looking ahead, CWT and GBTA will also release a special supplement to the “2025 Global Business Travel Forecast,” marking the 10th edition of this influential report.
The supplement will explore three potential scenarios for the future of business travel through 2040, addressing key trends such as technological advancements, sustainability pressures, and geopolitical changes.
A New Normal for Business Travel Expenses
For businesses planning their 2025 travel budgets, the forecast provides a clearer picture of what to expect.
While rising business trip prices remain a factor, the moderate increase in travel expenses and the stability projected over the next two years offer a more predictable environment for corporate travel planning.
As companies continue to balance cost management with a focus on sustainability and innovation, understanding the evolving landscape of business travel costs will be crucial for staying ahead in the global marketplace.
For more insights and travel news on business travel price trends, visit OneAir and stay updated with the latest corporate travel cost updates. Sign up for OneAir today for FREE to receive exclusive alerts on unbeatable deals for cheap flights and hotels straight to your inbox.
