GBTA Forecast Unveils Tough Road Ahead for Business Travellers as Global Travel Expenses Surge in 2026 Before Moderate Recovery in 2027 – You Need to Know

Written By: Pappu Mazumder

Pappu Mazumder

I bring a journalist’s perspective to the travel and tourism industry, contributing to Travel and Tour World through engaging storytelling, industry insights, and creative ideas. I focus on exploring emerging trends, highlighting key developments, and sharing meaningful stories that connect the global travel community while inspiring curiosity, innovation, and discovery.

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July 28, 2026 10:22 PM

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Global business travel expenses are expected to remain under significant pressure throughout 2026 as airlines, hotels and travel service providers continue facing higher fuel prices, labour expenses, supply limitations and ongoing economic uncertainty. Although cost growth is expected to slow in 2027, experts predict that corporate travel prices will not return to previous levels, as many of the challenges affecting the industry have become long-term structural changes.

The latest 2027 Global Business Travel Forecast from the Global Business Travel Association (GBTA) and ALTOUR highlights how the corporate travel industry is entering a new era where companies must prepare for permanently higher operating costs rather than expecting a full return to previous pricing levels. The comprehensive report examines the major forces reshaping global business travel budgets, including energy market volatility, rising workforce expenses, aircraft supply limitations, currency fluctuations and evolving travel demand patterns. It reveals how these long-term pressures are influencing airfare, hotel rates, ground transportation and meetings costs worldwide, creating a more complex and expensive environment for corporate travellers and travel managers.

Energy Prices and Workforce Costs Continue to Shape Global Travel Expenses

The global business travel industry continues to experience strong pricing pressure from two major factors: energy costs and labour expenses. These elements are influencing the cost of flights, accommodation, ground transportation and corporate events across international markets.

Energy markets have experienced extreme volatility, creating challenges for airlines and transportation providers. Major disruptions in global oil supply have pushed fuel costs higher, directly increasing airline operating expenses. Although energy prices have eased from their highest levels, aviation fuel remains a significant contributor to elevated airfare pricing.

At the same time, labour expenses continue to rise throughout the travel ecosystem. Airlines, hotels, transportation companies and meetings providers are facing increased wage costs due to multi-year employment agreements, inflation pressures and shortages of skilled workers.

These workforce challenges are expected to continue influencing travel prices over the coming years. Companies operating global travel programmes will need to consider higher service costs as a permanent part of their planning strategies.

Air Travel Remains the Biggest Source of Corporate Travel Price Pressure

Among all business travel categories, air transportation remains the most unpredictable and cost-sensitive segment. Airlines continue to face multiple challenges, including expensive fuel, limited aircraft availability, rising labour expenses and strong demand for premium travel services.

Global average airfare is forecast to reach around $756 in 2026, representing a rise of approximately 4.7% compared with 2025. Economy-class fares are expected to increase more sharply, reaching around $536, an estimated growth of 8.7%.

Premium travel categories are likely to experience even stronger inflation. Premium economy, business-class and first-class fares are projected to rise by approximately 9.5%, reaching nearly $4,488 in 2026. Strong demand for long-haul corporate travel and limited premium cabin availability are expected to keep prices elevated.

However, the pace of airfare growth is expected to slow in 2027. Overall airfares are forecast to increase by about 1.5%, while economy fares may rise by approximately 1.1% and premium fares by around 2.2%.

Regional differences will remain significant. North America and Europe, Middle East and Africa (EMEA) markets are expected to experience some of the strongest airfare increases in 2026 due to aircraft supply restrictions, operational expenses and delays in new aircraft deliveries.

Meanwhile, Latin America is expected to experience more moderate airfare growth as airlines increase capacity to match rising demand, helping create a better balance between available seats and passenger numbers.

Hotel Costs Continue Rising While Regional Differences Become More Visible

Accommodation expenses are also expected to remain elevated, although hotel pricing growth is expected to become more moderate compared with airfare increases.

Global hotel average daily rates (ADR) are projected to rise by approximately 3.7% in 2026, reaching around $168 per night. Growth is expected to slow in 2027, with average hotel rates forecast to increase by around 1.8%, reaching approximately $171.

A major factor limiting stronger hotel price increases is the expansion of global hotel supply. A record number of new hotel developments are helping increase room availability and reduce some pressure on rates.

However, regional performance remains highly uneven.

Latin America is expected to record the strongest hotel price growth in 2026, with rates projected to increase by around 9.5%. Demand growth is currently exceeding the pace of new hotel development in several markets, creating stronger pricing conditions.

The Asia-Pacific region is forecast to see hotel prices rise by approximately 5%, supported by continued recovery in important business and leisure destinations.

North America is expected to experience more moderate growth, with hotel rates increasing by around 3.2%.

Europe, the Middle East and Africa are expected to remain the most stable hotel market, with projected growth of only 0.6% due to softer demand conditions in some destinations.

Ground Transportation Costs Show Signs of Stabilisation After Earlier Increases

Ground transportation is expected to experience a more balanced pricing environment compared with air and hotel categories.

Car rental services, which represent one of the largest components of managed ground transportation, experienced declining prices in 2025 as vehicle availability improved. However, rates are expected to increase again in 2026.

Average global car rental prices are forecast to rise by around 3.6% in 2026, reaching approximately $46.50 per day.

By 2027, prices are expected to decline slightly by around 0.9%, bringing average daily rates down to approximately $46.10.

The Asia-Pacific region is expected to record the highest average car rental rates in 2026, reaching around $57.70 per day, representing growth of approximately 4%.

Improved vehicle supply and stronger fleet availability are helping reduce some of the pressure experienced during previous years. This stabilisation is expected to provide some relief for companies managing regional business travel budgets.

Corporate Meetings and Events Face Continued Budget Pressure

Business meetings, conferences and corporate events are also expected to become more expensive through 2026 and 2027.

Although negotiated hotel rates for large corporate groups remain relatively stable, other expenses continue increasing. Food and beverage services, event production requirements and labour costs are becoming the biggest contributors to rising programme budgets.

The average cost per attendee per day for meetings and events is expected to increase by around 3% in 2026, reaching approximately $263.

In 2027, costs are forecast to rise by another 1.5%, reaching nearly $267 per attendee per day.

Corporate event organisers are increasingly facing higher expenses for catering, technology, venue services and production support. These factors are forcing companies to rethink event strategies and focus on better cost management.

Companies Must Prepare for a Higher-Cost Travel Future

Although business travel inflation is expected to slow in 2027, companies should not expect a complete return to older pricing levels.

The forecast indicates that several long-term challenges will continue shaping the industry. These include aircraft delivery delays, increasing sustainable aviation fuel requirements, workforce shortages and geopolitical uncertainty.

The future of corporate travel is expected to be defined by careful planning, regional analysis and smarter budget management.

Global averages alone will no longer provide an accurate picture of travel expenses. Costs will vary significantly depending on destination, travel category and market conditions.

Business travel managers will need to adopt more targeted strategies by analysing individual regions, negotiating effectively with suppliers and identifying opportunities to control expenses without reducing travel effectiveness.

The coming years will likely bring a more expensive but more strategic business travel environment. Companies that adapt early will be better positioned to manage rising costs while maintaining essential global connections.