GBTA Forecast Says Business Travel Prices Stay High Through 2026

Business travel costs are expected to remain elevated through the end of 2026 before easing in 2027, according to a new forecast from GBTA and ALTOUR. Airfare faces the sharpest increases, while hotels, ground transportation and meetings budgets also remain under pressure from fuel, labor and capacity constraints.

Why it matters: - Business travel costs are set to stay high through 2026, squeezing corporate travel budgets and making planning more complicated. - The forecast suggests relief in 2027, but not a return to pre-shock pricing. - The persistence of higher costs matters for companies that rely on in-person sales, client meetings and global operations.

What happened: - The Global Business Travel Association and ALTOUR released the 2027 Global Business Travel Forecast on July 28, 2026. - The report says global business travel prices will remain elevated through the rest of 2026 and begin to moderate in 2027. - The forecast covers airfare, hotel accommodations, ground transportation, and meetings and events costs. - GBTA and ALTOUR say the outlook reflects energy prices, labor costs, aircraft supply constraints, currency swings and other market factors.

The details: - The forecast identifies energy prices and labor costs as the two biggest drivers of business travel inflation. - The 2026 closure of the Strait of Hormuz triggered a record oil supply disruption and pushed up crude oil and jet fuel prices. - Fuel prices have eased from peak levels, but labor costs continue rising across airlines, hotels, ground transport and meetings providers. - Multi-year agreements, wage inflation and workforce shortages are keeping labor pressure in place. - Global airfare is forecast to rise 4.7% in 2026 to $756 on average. - Economy fares are projected to climb 8.7% in 2026 to $536. - Premium fares are expected to increase 9.5% to $4,488. - Airfare growth is expected to slow in 2027 to 1.5% overall, 1.1% for economy and 2.2% for premium. - North America and EMEA are expected to see some of the strongest airfare increases in 2026 because of capacity limits, higher operating costs and aircraft delivery delays. - Latin America is seeing capacity growth alongside demand, which is helping soften airfare increases. - Global hotel average daily rates are expected to rise 3.7% in 2026 to $168, then increase 1.8% in 2027 to $171. - A record hotel construction pipeline is helping limit hotel rate growth even as demand stays strong. - Latin America is expected to post the fastest hotel price growth at 9.5% in 2026. - APAC is forecast to rise 5% in 2026, followed by NORAM at 3.2%. - EMEA is expected to be the most stable hotel market, with 0.6% growth, because demand is softer. - Managed ground transportation rates are also expected to edge higher. - Car rental rates are forecast to rise 3.6% in 2026 to $46.50 per day, then dip 0.9% in 2027 to $46.10. - APAC is expected to have the highest 2026 regional car rental rate at $57.70 per day, up 4.0%. - Fleet availability and vehicle supply are stabilizing, which is easing pricing pressure in ground transport. - Meetings and events budgets are projected to keep rising through 2026 and 2027. - Cost per attendee per day is forecast to increase about 3.0% to $263 in 2026 and 1.5% to $267 in 2027. - Food and beverage and production costs are the main drivers of meeting cost inflation.

Between the lines: - The report frames higher travel prices as structural, not temporary. - Aircraft delivery delays, sustainable aviation fuel requirements, labor shortages and geopolitical uncertainty are expected to keep the travel environment expensive. - GBTA says business travel remains a sign of business confidence even as costs rise. - ALTOUR says companies should respond with better forecasting, stronger supplier strategies, policy enforcement and real-time visibility across categories and markets. - The forecast notes that regional conditions vary widely, so global averages can hide major local differences.

What's next: - Travel buyers are likely to plan for slower price growth in 2027, not a full reset. - Companies will need to watch regional and category-level pricing more closely as costs diverge by market. - The report says managed travel programs, strategic planning and supplier discipline will matter more as volatility continues.

The bottom line: - Business travel inflation is expected to stay sticky through 2026, with only partial relief in 2027.