Travellers can prepare for more pain over the next 18 months with airfares predicted top rise by 8.4% in 2023, hotel room rates by 8.4% and car rental charges by 6.8%.
This is on top of a predicted full-year 2022 increase in airfares of 48.5%, hotel rates of 18.5%, and car rental charges of 7.3%.
These are the figures provided by the 2023 Global Business Travel Forecast, published today by CWT, the B2B4E travel management platform, and the Global Business Travel Association (GBTA).
Rising fuel prices, labour shortages, and inflationary pressures in raw material costs are the primary drivers of the expected price growth, says the report.
"Demand for business travel and meetings is back with a vengeance, of that there is absolutely no doubt," said Patrick Andersen, CWT's Chief Executive Officer.
"Labour shortages across the travel and hospitality industry, rising raw material prices, and greater awareness for responsible travel are all having an impact on services, but predicted pricing is, on the whole, on par with 2019."
Cautionary notes also highlighted in the 2023 Global Business Travel Forecast highlight the main forces exerting pressure on the economy and the business travel industry.
These include Russia's invasion of Ukraine coupled with other geopolitical uncertainties, inflationary pressures that are pushing costs higher, and the risk of further Covid outbreaks that could restrict business travel.
Business travel airfares fell over 12% in 2020 from 2019 followed by an additional 26% decline in 2021. Economy ticket prices fell over 24% from 2019 to 2021, while premium tickets fell 33%.
Prices are expected to rise 48.5% in 2022, but even with this steep price increase, prices are expected to remain below pre-pandemic levels until 2023.
Rising demand and continued price rises on jet fuel are putting upward pressure on ticket prices.
For more detailed information, including geographic breakdowns and greater in-depth insights into trends and analysis, you can see the report online here, where you can also download a PDF version of the 35-page report.
Image: Hanny Hsian, Scop.io
Rising fuel prices, labour shortages, and inflationary pressures in raw material costs are the primary drivers of the expected price growth, says the report.
"Demand for business travel and meetings is back with a vengeance, of that there is absolutely no doubt," said Patrick Andersen, CWT's Chief Executive Officer.
"Labour shortages across the travel and hospitality industry, rising raw material prices, and greater awareness for responsible travel are all having an impact on services, but predicted pricing is, on the whole, on par with 2019."
Cautionary notes also highlighted in the 2023 Global Business Travel Forecast highlight the main forces exerting pressure on the economy and the business travel industry.
These include Russia's invasion of Ukraine coupled with other geopolitical uncertainties, inflationary pressures that are pushing costs higher, and the risk of further Covid outbreaks that could restrict business travel.
Business travel airfares fell over 12% in 2020 from 2019 followed by an additional 26% decline in 2021. Economy ticket prices fell over 24% from 2019 to 2021, while premium tickets fell 33%.
Prices are expected to rise 48.5% in 2022, but even with this steep price increase, prices are expected to remain below pre-pandemic levels until 2023.
Rising demand and continued price rises on jet fuel are putting upward pressure on ticket prices.
For more detailed information, including geographic breakdowns and greater in-depth insights into trends and analysis, you can see the report online here, where you can also download a PDF version of the 35-page report.
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