Business travel & event costs are stabilizing, says CWT & GBTA

Business travel and event prices appear to be stabilizing after years of increases, according to the 2025 Global Business Travel Forecast, a report published by CWT and the Global Business Travel Association (GBTA).

The change reflects a stabilization in market conditions and a more balanced growth trajectory, according to the report, which uses data generated by CWT and GBTA, with publicly available industry information, and econometric modelling.

"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," said Patrick Andersen, CWT's president and CEO, in a press release. "Businesses can expect to navigate a more predictable pricing environment through 2024 and 2025, allowing for better budget planning and cost management. However, price regularity is fragile. The focus on geopolitical factors, inflationary pressures and ESG concerns remains critical."

Global ticket prices

In 2023, the global average ticket price (ATP) was $688, representing a slight decline of -1.6% from the previous year.

Europe, Middle East, and Africa (EMEA) recorded an ATP of $785 last year, the highest of any region. North America (NORAM) was the region that saw the steepest growth rate, with the ATP climbing +4.3% to $777.

Conversely, the ATP in Asia-Pacific (APAC) slumped -7% in 2023 to $488, following a meteoric post-pandemic rise the year before.

Demand for flights remains strong globally. A record five billion air passengers are expected in 2024, according to IATA, surpassing the 4.5 billion peak in 2019. Meanwhile supply chain constraints such as aircraft production issues and delays, as well as a focus on profitability, will also keep prices high.

The forecast indicates global ATP will increase to $701 (+1.9%) in 2024 and $705 (+0.6%) in 2025.

Hotels

The global average daily room rate (ADR) rose +3.9% in 2023 to $158, after a +30% rise in 2022. LATAM saw the biggest pricing gains in 2023, with the ADR increasing +10.7% to $93. APAC was not far behind, recording an ADR increase of +7.4% to $131.

Occupancy levels recovered to pre-pandemic levels in some markets, while the benefits from group business travel for meetings and events. However, there is still a lack of new hotel supply.

Ground transportation

Car rental companies are offering greater versatility, including airport and railway transfers, as well as one-way intercity transfers.

Meanwhile, the cost of buying and operating cars is easing, and fleet concerns have stabilized, so suppliers are keeping rates in check, to stimulate demand.

Global car rental prices rose +3% to $44.30 per day in 2023. Looking ahead, global price growth in 2024 will likely be tempered, slowing to +2.5%, with an average daily rate of $45.40. A similar growth rate of +2.4% is predicted for global rates in 2025, with prices rising to $46.50.

Meetings & events

The meetings and events sector has rebounded strongly post-pandemic, with heightened demand for in-person engagements, the report says.

In 2023, the average daily cost per attendee fell to $155, down from $160 in 2022, representing a -3.1% decline.

This decrease can be attributed to a shift in types of meetings being held, the report says. Many organizations opted for smaller, more business-focused meetings, often without costly incentive components, to manage budgets more effectively.

This focus on cost control, including selecting more affordable venues and destinations, helped offset rising accommodation and F&B prices.

Looking forward, the average daily cost per attendee is projected to increase to $162 in 2024, a +4.5% rise from 2023, and to approximately $169 in 2025, an additional +4.3% increase.

This upward trend reflects the sector's continued recovery and growing appetite for larger and more complex in-person events.

Forecast calculator tool

To help businesses better understand how these price changes might impact their travel budgets, CWT has created a Forecast Calculator, available here, based on data from the report.

The tool allows organizations to visualize and quantify how predicted price fluctuations across airfares, hotel rates, ground transportation, and meeting costs might influence their individual travel programs.

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