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Global Travel Prices Set to Continue to Increase According to Latest Forecast from CWT and GBTA
Global travel prices are predicted to continue to increase in the remaining months of 2022 and throughout 2023, according to the 2023 Global Business Travel Forecast, published today by CWT and GBTA. Business travelers are set to see air fares rise by 8.4%, hotel rates by 8.2%, and car rental charges by 6.8% in 2023.
Rising fuel prices, labor shortages, and inflationary pressures in raw material costs are the primary drivers of the expected price growth, according to the report which uses anonymized data generated by CWT and GBTA, with publicly available industry information, and econometric and statistical modeling developed by the Avrio Institute. For 8 years, CWT and GBTA have partnered to analyze pricing predictors and factors to help business travel managers plan their annual programs and policies.
“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. “Labor 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.”
“What we are seeing now are multiple factors coming into play when corporate travel buyers and procurement officers model their travel programs. This eighth joint annual forecast marries statistical travel data and trend analysis with macroeconomic influences to provide a cornerstone reference point for their corporate business travel planning ahead,” said Suzanne Neufang, Chief Executive Officer of GBTA.
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