Business travelers are set to see airfares rise by 8.4 percent, hotel prices by 8.2 percent and car rental fees by 6.8 percent in 2023.

This is on top of a 48.5% increase in air fares for the full year of 2022;
Hotel rates are 18.5% and car rental rates are 7.3%.

Minneapolis, August 10, 2022 /PRNewswire/ — Global travel prices are forecast to continue rising through the remaining months of 2022 and throughout 2023, according to the 2023 Global Business Travel Forecast published today by CWT, the B2B4E travel management platform and the Global Business Travel Association. (GBTA), the voice of the global business travel industry.

Rising fuel prices, labor shortages and inflationary pressures on raw material prices are the main factors behind the expected price increase, it said, using anonymized data generated by CWT and GBTA based on publicly available industry data and economic and statistical modeling. Developed by Avrio Institute.

“The demand for business travel and meetings is back with a vengeance, there’s no doubt about that.” he said. Patrick AndersonCEO of CWT. “Labor shortages in the travel and hospitality industry, rising commodity prices and heightened awareness of responsible travel are all impacting services, but forecast prices are generally flat for 2019.”

“What we are seeing now is a lot. Factors that come 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 companies with a cornerstone reference point for their business travel plans.,“SHelp Susan NuffangCEO of GBTA.

Macroeconomic effects
In the year In 2020, the world economy shrank by 3.4%. The worst recession since World War II. Service sectors, including travel and hospitality, were particularly hard hit, but the global economy recovered quickly. It has rebounded from its lows in 2020 and is up 5.8% in 2021. Economic growth is moderate as the recovery drags on, although another recession is a growing concern. The current base case for 2022 is for 3% growth, followed by 2.8% growth in 2023.

Warning Notes on the Global Business Travel Forecast to 2023 highlights three major forces that will exert pressure on the economy and the business travel industry. These include: Russian Invasion Ukraine Among other things, geopolitical uncertainty, inflationary pressures and the risk of further Covid outbreaks that will raise costs, and limit business travel.

Conversely, with businesses placing sustainability among their top priorities and reflecting the accelerated importance of combating climate change, the report highlights greater visibility in the marketplace for green travel options, as well as carbon footprint, and environmental impact assessment opportunities. For the travel industry to proactively assist in responsible selection.

meetings and events
Prices in most spending categories rose across all regions, driven by demand, the desire to build company culture and an uncertain economic outlook. Spending on meetings and events is expected to be 25% higher in 2022 than in 2019, and is forecast to grow an additional 7% in 2023.

Along with demand, corporate events are competing with many other types of events that have been canceled in 2020. And many companies have abandoned office space for remote work during the pandemic and are now holding meeting spaces while employees are away. Collecting in person, further accelerating demand.

Short lead times for events, ranging from one to three months to six to 12 months, are contributing to this perfect storm, perhaps accentuated by corporate concerns that the conditions they face today can change too quickly. This is especially visible in Asia PacificIt has been slower than other regions to reopen post-pandemic, amid ongoing restrictions China Getting clients to keep their events moving and moving as quickly as possible.

Air
In 2020, business airfares dropped more than 12 percent from 2019, followed by a further 26 percent decrease in 2021. Economy ticket prices dropped more than 24 percent from 2019 to 2021, and premium tickets dropped 33 percent. Prices are expected to rise by 48.5% in 2022, but prices are expected to remain below pre-pandemic levels until 2023 despite this sharp increase in prices. In the year

Increased demand and continued price increases have seen prices more than double in some markets. 160 dollars/barrels are putting significant pressure on ticket prices, according to S&P Global.

Premium class tickets accounted for more than 7% of all tickets purchased in 2019. The share of premium class tickets dropped to 6.5% in 2020 and 4.5% in 2021, but started to increase in 2022. It accounted for 6.2 percent of all tickets purchased. As the average ticket price includes economy and premium, a share of premium class tickets results in a higher average price.

International and cross-border bookings are recovering in most regions, resulting in higher international ticket bookings and correspondingly higher average ticket prices despite uncertainty caused by the war. Ukraine. With little to no cost for two years, business travelers may be willing to shell out more money for tickets, especially as availability declines due to labor shortages. This upward trend is largely due to widespread vaccine rollout and the reopening of borders.

Hotel
Hotel prices fell by 13.3% in 2020 from 2019 and a further 9.5% in 2021, however, the report expects them to rise by 18.5% in 2022 and 8.2% in 2023. Europeof middle east & Africa And North America And they are expected to do so globally by 2023.

Hotel prices have increased significantly in parts of the world, including a 22 percent increase. North America – and overall forecast 31.8% Europeof middle east & Africa – Driven by accelerated recovery with continued limitations.

Hotel rate increases were initially driven by strong leisure travel in 2021, but group travel for corporate meetings and events is improving and transient business travel is gaining at a similarly healthy pace, putting additional pressure on average daily hotel rates.

Ground transportation
Global car rental prices fell 2.5% in 2020 from 2019, before rising 5.1% in 2021. Prices are expected to rise 7.3% in 2022, reaching a new high, and rise a further 6.8% in 2023.

The auto industry has yet to fully recover from capacity constraints and leasing agencies that reduced fleets following the pandemic — partly because shortages and supply chain disruptions have slowed global car production.

Rental agencies have returned to buying used vehicles to increase fleet size and are keeping their vehicles longer. Some agencies are buying vehicles from automakers outside of their historically supported brands.

Skyrocketing prices, vehicle shortages and the need to monitor door-to-door carbon emissions are driving corporate travel managers from scratch to complete travel planning. This is especially true when it comes to electric vehicles, and while widespread adoption may still be a few years away, personal preference should not be underestimated.

For more detailed information, including geographic breakdowns and in-depth insights into trends and analytics, please visit the report.t online over here , You can also download a PDF copy of the 35-page report.

Notes to editors

1. Global business travel forecast for 2023
In the year Forecasts in the Global Business Travel Forecast 2023 include:

• Statistical models developed by GBTA
• Historical price behavior and forecasts for air, hotel and ground services by research, strategy and market and economic research firm, Avrio Institute
• CWT’s market-specific expertise and knowledge of the travel industry
• Information from the International Monetary Fund Research Department, IATA, World Travel and Tourism Council, United Nations and other leading organizations

Forecasts are based on transaction data from CWT’s global customer portfolio, including anonymized customer travel patterns over the past ten years. Key macroeconomic and domestic indicators, such as current and expected GDP growth, consumer price index, unemployment rate and crude oil price, are used in the statistical model, as well as key supply-side drivers from OAG and STR Global. All air statistics represent a starting point and include all types of travel.

An educational session on 2023 Global Business Travel Forecast and Future Price Projects and Trends in 2023 GBTA Convention 2022 (Section 20D) Monday, August 15, 2022 at 10:00 a.m. (PST).

2. About GBTA
The Global Business Travel Association (GBTA) is the world’s largest business travel and meetings trade organization. 1.4 trillion dollars Business travel industry. With operations on four continents, GBTA members manage more than $345 billion in global business travel and meetings spending annually. GBTA provides education, professional development, events, research, advocacy and media to a global network of over 28,000 travel professionals and 125,000 active contacts. Visit www.gbta.org and follow us on Facebook, LinkedIn, Twitterand YouTube.

3. About CWT
CWT It is a business-to-business-to-employees (B2B4E) travel management platform. Companies and governments rely on us to keep their people connected – anywhere, anytime, any way – and we deliver innovative technology and an efficient, safe and secure travel experience for their employees across six continents. Follow us on Facebook, LinkedIn, and more Twitter.

4. About the Avrio Institute
Avrio Institute is a contemporary and research organization that helps clients lead technology shifts, differentiate themselves from competitors and identify new markets and opportunities. Derived from the Greek Αύριο, meaning “tomorrow,” Avrio helps leaders from Fortune 100 and Global 1000 companies, startups, government agencies and nonprofits prepare for uncertain, diverse futures.

Contact:
CWT Public Relations
[email protected]

Source CWT; Global Business Travel Association (GBTA)