There’s a glimmer of hope for businesses facing the relentless climb of travel expenses. A new report by CWT and the Global Business Travel Association (GBTA) predicts a slowdown in the dramatic price hikes seen in recent years. While costs are expected to continue rising, the pace of increase is projected to moderate in the coming years.
The report offers insights into specific travel sectors:
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Airfare:
Global average ticket prices are forecasted to increase, with North America experiencing the most substantial jumps. However, the overall growth rate is expected to be significantly slower than in the past.*
Hotels:
Hotel rates are anticipated to continue rising, driven by strong demand and limited supply. While the growth rate is expected to moderate, businesses can still expect steady price increases in this sector.*
Ground Transportation:
Car rental prices are projected to rise at a moderate pace. Although the overall increase is expected to be less dramatic than recent years, businesses should factor in rising costs when planning their travel budgets.*
Meetings and Events:
The cost of meetings and events is expected to continue increasing, but at a slower rate than in recent years. The report suggests that businesses can mitigate costs by opting for smaller, more focused events and by carefully selecting venues and destinations.Patrick Andersen, CWT’s President & Chief Executive Officer, states that this stabilization in market conditions reflects a more balanced growth trajectory. Suzanne Neufang, CEO of GBTA, emphasizes the need for businesses to remain vigilant to evolving pricing dynamics influenced by global trends.
To help businesses assess the impact on their travel spend, CWT has created a Forecast Calculator. This tool allows organizations to visualize and quantify how predicted price fluctuations might influence their individual travel programs.
While the report offers a positive outlook, businesses are encouraged to remain cautious and adapt their strategies to navigate the evolving landscape of business travel. By carefully planning, budgeting, and negotiating, businesses can mitigate the impact of rising travel costs and ensure that their travel programs remain effective and efficient.
