The 2025 Global Business Travel Forecast, published by business travel specialist CWT and the Global Business Travel Association (GBTA), reveals a slowing pace of travel cost increases after several years of significant price hikes. According to the report, while prices for business travel will continue to rise through 2024 and into 2025, the rate of increase is expected to moderate, reflecting more balanced market growth.

The report, created using anonymized data from CWT and GBTA, combined with industry data and statistical modeling from the Avrio Institute, presents a clearer picture of the changing business travel landscape. This will be welcome news for Asian businesses who have longed complained about the rising costs of corporate travel.

A predictable pricing environment ahead

CWT’s President & CEO, Patrick Andersen, noted the positive shift toward stability, saying, “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.” He also emphasized that businesses can expect a more predictable environment through 2024 and 2025, which should help with better budget planning and cost management. However, he warned that this stability could be fragile, influenced by factors like geopolitical issues, inflation, and sustainability (ESG) concerns.

Suzanne Neufang, CEO of GBTA, echoed this sentiment, noting that while a more stable period is ahead, companies must stay aware of changing pricing dynamics impacted by global trends. “The next few years will require a strategic approach that balances cost management with sustainability, innovation, and responsiveness to market changes,” she added.

Air travel demand remains high, prices follow suit

According to the report, air travel demand is set to stay strong, with an estimated 5 billion passengers expected in 2024, surpassing the pre-pandemic peak of 4.5 billion in 2019. However, constraints in the supply chain, such as aircraft production delays and the focus on profitability, are likely to keep airfares elevated.

In 2023, the global average ticket price (ATP) dropped slightly to $688, but the forecast suggests a rise to $701 in 2024 (+1.9%) and $705 in 2025 (+0.6%). North America will see the sharpest increase, with the ATP reaching $804 in 2024 (+3.5%) and $808 in 2025. Asia-Pacific, which saw a decline in ATP in 2023, is expected to experience a rebound, with fares reaching $677 in 2024 and $688 in 2025.

Hotel rates continue to climb, albeit more slowly

The global average daily room rate (ADR) rose by 3.9% in 2023 to $158, a slowdown compared to the 30% surge in 2022. Although prices are stabilizing, strong demand and limited supply of new hotels will keep rates high. The forecast projects an increase of 2.5% in 2024, bringing the ADR to $162, and a further rise of 1.9% in 2025 to $165.

Latin America is expected to see the sharpest growth in hotel prices, with ADRs forecast to rise by 9.7% in 2024 and 7.8% in 2025, driven by strong domestic and regional demand. Asia-Pacific’s ADR growth is predicted to slow, reaching $136 in 2024 and $139 in 2025.

Ground transportation sees steady price growth

Car rental rates are also expected to grow but at a slower pace. In 2023, global rental prices increased by 3%, bringing the daily rate to $44.30. The forecast predicts further growth of 2.5% in 2024 and 2.4% in 2025, with global rates reaching $45.40 and $46.50, respectively.

Latin America is expected to experience sharp price increases of 11% in 2024 and 7.9% in 2025. Meanwhile, Asia-Pacific is expected to see a significant decrease in car rental rates, dropping by 6.8% in 2024 and another 3.4% in 2025.

Meetings and events on the rise

The meetings and events sector has seen strong growth post-pandemic. In 2023, the average daily cost per attendee dropped to $155, reflecting a shift toward smaller, more business-focused meetings. However, costs are expected to rise again in 2024, with the average daily cost projected to increase by 4.5% to $162 and by an additional 4.3% to $169 in 2025.

Organizations are advised to plan their events with a 12-month horizon to account for rising prices and to consolidate travel and meeting spend to enhance negotiating leverage.

Helping businesses assess the impact on travel budgets

To assist companies in managing these changing travel costs, CWT has introduced a Forecast Calculator. This tool allows businesses to visualize how predicted price fluctuations across airfares, hotels, ground transportation, and meetings will impact their travel budgets, enabling organizations to plan more effectively based on their unique travel needs.

With business travel demand remaining strong, the 2025 Global Business Travel Forecast provides critical insights for companies aiming to navigate the evolving landscape while balancing cost management with sustainability and innovation.