- Global airfare projected to rise 4.7 percent in 2026.
- Hotel ADR to reach $168 in 2026.
- Business travel costs unlikely to return to 2025 levels.
"Business travel remains a powerful indicator of business confidence,” said Suzanne Neufang, GBTA CEO. “Companies continue to invest in face-to-face connections, customer relationships and growth despite higher costs and greater complexity. In this environment, a well-managed travel program is essential.”
Air travel is expected to see the biggest cost increases. Global average airfares are projected to rise 4.7 percent to $756 in 2026. North America, Europe, the Middle East and Africa are expected to see some of the strongest increases due to limited capacity, higher operating costs and aircraft delivery delays. In Latin America, growing airline capacity is helping limit fare increases. Overall fare growth is expected to slow to 1.5 percent in 2027.
ADR is forecast to rise 3.7 percent to $168 in 2026, followed by a 1.8 percent increase to $171 in 2027. A record global hotel construction pipeline is helping limit rate growth despite strong demand. Latin America is expected to see the largest increase at 9.5 percent, followed by Asia Pacific at 5 percent and North America at 3.2 percent. Europe, the Middle East and Africa are forecast to see the smallest increase at 0.6 percent.
Meetings and events costs are also expected to rise. The cost per attendee per day is forecast to increase about 3 percent to $263 in 2026 and another 1.5 percent to $267 in 2027. Higher food and beverage, production costs are driving the increase, while negotiated group hotel rates remain relatively stable.
Michael Boult, ALTOUR’s senior vice president and chief commercial officer said, fuel-related inflation was easing but would remain high through the rest of the year.
“For organizations, the priority now is turning volatility into a more manageable and predictable planning discipline,” he said.
While costs may ease in 2027, they are not expected to return to 2025 levels. The forecast advises travel buyers to assess costs by region, market and category, as pricing factors vary worldwide.
An earlier GBTA report found that business travel continued in 2026, but companies were becoming less confident as conflict, rising costs and disruptions affected travel plans.
