GBTA Forecasts Corporate Travel Costs to Remain High Through 2026

Corporate travel costs are forecast to stay high throughout 2026 due to fuel supply disruptions, ongoing labor expenses, and aircraft shortages, before price growth slows in 2027. Global average airfares will increase by 4.7 percent, and hotel average daily rates will climb to $168, ensuring travel budgets will not return to 2025 levels. [1]

What is driving the continued increase in airfare and hotel rates?

According to Asian Aviation, the Global Business Travel Association identifies labor costs and energy prices as the two largest forces pushing prices upward. [1] The 2026 closure of the Strait of Hormuz caused the largest recorded oil supply disruption, spiking crude oil and jet fuel prices and impacting airline operating costs worldwide. [1] While fuel prices have dropped from their peaks, long-term multi-year agreements, wage inflation, and workforce shortages are keeping labor costs high for hotels, airlines, ground transportation, and event providers. [1]

Asian Hospitality noted that an earlier GBTA report showed companies losing confidence as conflicts, rising costs, and disruptions affected their travel plans. [2] Despite these pressures, travel buyers are urged to plan carefully. Michael Boult, senior vice president and chief commercial officer at ALTOUR, told Asian Hospitality that organizations must turn volatility into a predictable planning discipline. [2]

How will hotel average daily rates change across different regions?

Global hotel average daily rates are projected to reach $168 in 2026, representing a 3.7 percent increase, followed by a 1.8 percent rise to $171 in 2027. [2] A record global hotel construction pipeline is helping to limit rate growth, even as demand stays strong. [2]

Regional variations remain a major factor for hotel pricing in 2026. [1] Buyers are advised to assess costs by specific categories, markets, and regions rather than relying on global averages. [2]

These figures highlight the differing pressures across the globe, with Latin America seeing the largest rate increases while EMEA remains the most stable hotel market. [1]

Will airline capacity constraints lead to grounded flights?

Air travel remains the most volatile pricing category, reflecting continued exposure to fuel costs, aircraft shortages, labor expenses, and premium-cabin constraints. [1] Global airfare is forecast to average $756 in 2026. [1] Economy tickets will rise 8.7 percent to $536, and premium fares, which include premium economy, business class, and first class, will jump 9.5 percent to $4,488. [1]

John Strickland, an aviation analyst heading JLS Consulting, warned during a World Aviation Festival webinar that airlines will face a higher level of cancellations this winter. [1] He stated that lowering prices to stimulate demand will not cover the higher fuel costs, leading to more grounded planes and weaker services becoming uneconomic. [1] The International Air Transport Association forecasts that airline fuel costs will reach $350 billion in 2026, a nearly 40 percent increase, making up 31.4 percent of total operating expenses. [1]

North America, Europe, the Middle East, and Africa will see the strongest airfare increases due to aircraft delivery delays, higher operating costs, and capacity limits. [2] In contrast, Latin America is growing airline capacity alongside demand, which is helping to limit fare hikes relative to other regions. [1]

How are meeting and event budgets impacted by these pressures?

Meetings and events budgets are expected to increase through 2026 and 2027. [1] The cost per attendee per day is forecast to reach $263 in 2026, an increase of approximately 3 percent, before rising another 1.5 percent to $267 in 2027. [2] Higher production and food and beverage expenses are the primary drivers of this inflation. [2] Negotiated group hotel rates are remaining relatively stable. [2]

Ground transportation is also seeing varied pricing. Car rental rates, which declined in 2025, will increase 3.6 percent to $46.50 per day in 2026, before dropping 0.9 percent to $46.10 in 2027. [1] The Asia Pacific region will see the highest car rental rates in 2026 at $57.70 per day, a 4.0 percent increase. [1] Fleet availability and vehicle supply are stabilizing, which is helping to moderate pricing pressure across most regions. [1]

When will corporate travel pricing return to previous levels?

Travel costs are not expected to return to 2025 levels, even as price growth slows down in 2027. [2] Overall airfare growth will slow to 1.5 percent in 2027, with economy fares rising 1.1 percent and premium fares rising 2.2 percent. [1]

Structural factors are cementing these higher costs as long-term features of the industry rather than short-term disruptions. [1] These factors include sustainable aviation fuel requirements, geopolitical uncertainty, aircraft delivery delays, and ongoing labor shortages. [1] Corporate travel planners must adjust their budgets to accommodate this permanently more costly travel environment. [1]