The 2027 Global Business Travel Forecast examines the economic factors influencing airfares, hotel rates, ground transportation and meetings and events costs across global markets. These include energy prices, labour costs, aircraft supply constraints, currency fluctuations and wider geopolitical conditions.
Pricing pressures are expected to ease gradually during 2027. However, travel costs are unlikely to return to previous levels because several factors behind recent increases have become longer-term features of the business travel operating environment.
Suzanne Neufang, CEO of GBTA, said: “Business travel remains a powerful indicator of business confidence. Companies continue to invest in face-to-face connections, customer relationships and growth despite higher costs and greater complexity,” said Suzanne Neufang, CEO of GBTA. “Business travel may need to weather more uncertainty through this year. In this environment, a well-managed travel program is essential. Realizing travel’s full value will depend on managed programs backed by strategic foresight, data and decision-making.”
Michael Boult, SVP and Chief Commercial Officer of ALTOUR, said: “The most acute impacts of the early 2026 energy-related inflation were beginning to ease, but we are likely to see elevated fuel-related inflation for the remainder of the year and the operating environment for business travel is not returning to what it was before,” said Michael Boult, SVP and Chief Commercial Officer of ALTOUR. “For organizations, the priority now is turning volatility into a more manageable and predictable planning discipline. That means using better forecasting, stronger supplier strategies, enforcing policies and gaining real-time visibility across categories and markets to keep business travel moving.”
The forecast identifies energy prices and labour costs as the two most significant factors shaping business travel pricing. The closure of the Strait of Hormuz in 2026 triggered the largest oil supply disruption on record, contributing to a sharp rise in crude oil and jet fuel prices and increasing airline operating costs worldwide.
Although fuel prices have declined from their peak levels, labour costs continue to increase across airlines, hotels, ground transportation providers and meetings and events companies. The report links these increases to multi-year agreements, wage inflation and continuing workforce shortages.
Air travel remains the most volatile category in the forecast because of its exposure to fuel costs, aircraft shortages, labour expenses and limited premium-cabin capacity.
Average global airfare is forecast to reach $756 in 2026, representing a 4.7% increase compared with 2025. Economy fares are projected to rise by 8.7% to an average of $536.
Premium fares, including premium economy, business class and first class, are expected to increase by 9.5% to an average of $4,488. The forecast attributes the increase to continued pressure in long-haul and premium travel markets.
Airfare growth is expected to slow in 2027. Overall fares are forecast to rise by 1.5%, while economy fares are projected to increase by 1.1% and premium fares by 2.2%.
North America and Europe, the Middle East and Africa are expected to record some of the strongest average airfare increases during 2026. Capacity constraints, higher operating costs and continued aircraft delivery delays are among the factors influencing prices in these regions.
Latin America is experiencing growth in both capacity and demand, helping to moderate airfare increases compared with other global regions.
Global hotel average daily rates are forecast to increase by 3.7% in 2026 to $168. A further increase of 1.8% is expected in 2027, taking the global average daily rate to $171.
Hotel demand remains resilient, although a record global construction pipeline is helping to contain rate increases. The forecast identifies significant regional differences in hotel pricing
Latin America is expected to record the highest hotel rate growth in 2026, with average prices rising by 9.5% as demand exceeds the pace of new hotel development.
Asia-Pacific hotel rates are forecast to increase by 5%, supported by the continued recovery of demand in key markets. North America is expected to record growth of 3.2%.
Europe, the Middle East and Africa is forecast to remain the most stable hotel market, with average daily rates increasing by 0.6% as a result of softer demand.
Car rental, which represents the largest component of managed ground transportation, recorded declining rates during 2025. Average daily rates are forecast to increase by 3.6% in 2026 to $46.50 before declining by 0.9% in 2027 to $46.10.
Asia-Pacific is expected to record the highest regional car rental rates during 2026, averaging $57.70 per day, an increase of 4%. The stabilisation of fleet availability and vehicle supply is expected to moderate pricing pressure across most regions.
Meetings and events budgets are forecast to increase through both 2026 and 2027. Negotiated group hotel rates are expected to remain relatively stable, while food and beverage, production and labour costs continue to place pressure on programme budgets.
The average cost per attendee per day is projected to increase by approximately 3% to $263 in 2026. A further increase of 1.5% is forecast for 2027, taking the average cost to $267.
Food and beverage expenses and production costs remain the primary sources of inflation within meetings and events programmes.
The report expects business travel cost growth to moderate in 2027 but does not forecast a return to 2025 pricing levels. Aircraft delivery delays, sustainable aviation fuel requirements, labour shortages and geopolitical uncertainty are expected to maintain a higher-cost travel environment.
The forecast also identifies substantial differences between regions and travel categories. It states that pricing factors vary significantly across markets, making regional, market-specific and category-level cost assessments increasingly important for corporate travel programmes.
Tags: Michael Boult, ALTOUR Suzanne Neufang, GBTA
