Global business travel costs are expected to remain elevated through the rest of 2026, with airfares, hotel rates, ground transportation and meetings continuing to face upward pressure from fuel prices, labour costs and strong travel demand. A new forecast by the Global Business Travel Association (GBTA) and ALTOUR predicts pricing will begin to moderate in 2027, although costs are unlikely to return to previous levels.
The 2027 Global Business Travel Forecast says higher energy prices, labour shortages, aircraft supply constraints and geopolitical uncertainty have reshaped the economics of corporate travel. While inflationary pressures are expected to ease gradually next year, companies should continue preparing for a more expensive travel environment over the longer term.
The report identifies energy and labour as the two biggest drivers of business travel costs. It says the 2026 closure of the Strait of Hormuz triggered the largest oil supply disruption on record, causing a sharp rise in crude oil and jet fuel prices that increased airline operating costs worldwide.
Although fuel prices have fallen from their peak, airlines, hotels, ground transportation providers and meetings businesses continue to face rising labour expenses through wage inflation, multi-year labour agreements and ongoing workforce shortages.
Suzanne Neufang, Chief Executive Officer of GBTA, said business travel continues to reflect corporate confidence despite growing economic challenges.
“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 program is essential. Realizing travel’s full value will depend on managed programs backed by strategic foresight, data and decision-making.”
Michael Boult, Senior Vice President and Chief Commercial Officer of ALTOUR, said businesses should focus on managing volatility rather than expecting travel costs to return to previous norms.
“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, SVP and Chief Commercial Officer of ALTOUR.
“For organizations, 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.”
Air travel remains the category under the greatest pricing pressure. Average global airfares are forecast to reach $756 in 2026, up 4.7% compared with 2025. Economy fares are expected to rise 8.7% to $536, while premium fares, including premium economy, business class and first class, are projected to increase 9.5% to $4,488.
The report expects airfare inflation to slow in 2027. Overall fares are forecast to increase by 1.5%, while economy fares should rise 1.1% and premium fares 2.2%. North America and EMEA are expected to record some of the strongest airfare increases this year because of aircraft delivery delays, capacity constraints and higher operating costs. Latin America, by contrast, is adding capacity alongside demand, helping moderate price growth.
Hotel prices are also expected to increase, although at a slower pace than airfares. Global average daily rates are forecast to rise 3.7% to $168 during 2026 before increasing a further 1.8% to $171 in 2027. A record global hotel construction pipeline is helping contain price growth despite strong travel demand.
Regional differences remain significant. Hotel rates in Latin America are forecast to grow 9.5% as demand continues to outpace new hotel development. Asia Pacific is expected to see average hotel prices increase 5%, while North America records 3.2% growth. EMEA remains the most stable region, with hotel prices forecast to rise just 0.6%.
Ground transportation costs are showing greater stability. Average managed car rental rates are forecast to increase 3.6% in 2026 to $46.50 per day before easing slightly to $46.10 in 2027 as fleet availability and vehicle supply improve.
Meetings and events budgets are also expected to continue rising. The average daily cost per attendee is forecast to increase 3% to $263 in 2026 and a further 1.5% to $267 in 2027, driven mainly by food, beverage, production and labour expenses.
The forecast concludes that corporate travel managers should prepare for gradual relief rather than a return to pre-2026 pricing. It recommends more targeted planning based on regional and market differences, noting that aircraft delivery delays, sustainable aviation fuel requirements, labour shortages and geopolitical uncertainty are likely to keep business travel costs structurally higher in the years ahead.
