Business travel is bouncing back—but not without a price tag. According to the 2026 Global Business Travel Forecast released by CWT and the Global Business Travel Association (GBTA), corporate travelers and travel managers should brace for another year of rising costs across airfare, hotel stays, and car rentals—albeit at a slower pace than previous post-pandemic spikes.
The annual forecast, now in its tenth edition, combines historical data with econometric modeling to project how pricing trends will evolve in the year ahead. Based on contributions from CWT’s global client network and Oxford Economics, the report provides essential insight into how the business travel landscape is shifting.
So, What’s Going Up (and How Fast)?
According to the 2026 forecast:
- Airfare is projected to rise by 3.5% globally after a sharp 9.1% increase in 2023 and a gentler 2.3% rise in 2024.
- Hotel rates are expected to increase by 4.0%, with demand still outpacing supply in key business hubs.
- Car rental rates are forecasted to climb 2.6%, continuing a post-pandemic trend of tight supply and rising operational costs.
These increases reflect normalizing supply chains, persistent demand, and higher costs for sustainable travel options, especially in Europe.
What’s Driving These Trends?
- Airfare Pressure PointsWhile airfare increases will be moderate, they’ll still be influenced by rising fuel prices, labor costs, and route optimization strategies by major airlines. Premium cabin fares, in particular, are seeing increased demand as companies blend business and leisure (“bleisure”) and prioritize employee well-being.
- Hotel Rate RealitiesHotel rate growth is strongest in regions with high occupancy and limited new supply. Asia Pacific, for instance, is seeing accelerated rate recovery as corporate travel rebounds post-lockdown. However, dynamic pricing models mean negotiated corporate rates may offer more flexibility.
- Car Rentals Hit by Labor and Inventory ChallengesThe car rental industry continues to face staffing shortages and increased fleet costs, though electric vehicle (EV) fleets are starting to help companies meet sustainability targets. Expect moderate price increases and fewer availability surprises than in years past.
| Region | Airfare % (2025–2026) | Hotel Rate % (2025–2026) | Car Rental % (2025–2026) |
|---|---|---|---|
| North America | +2.3% | +3.6% | +2.4% |
| Europe | +3.8% | +4.1% | +2.8% |
| Asia Pacific | +4.2% | +5.6% | +2.5% |
| Latin America | +2.0% | +3.1% | +2.3% |
| Middle East & Africa | +3.1% | +3.5% | +2.6% |
What Should Travel Managers and Executives Do?
1. Lean into Data: Companies are advised to use forecasting tools and historical spend data to better anticipate and manage budgets.
2. Rethink Policy: Reevaluate travel policies to account for rising costs, particularly around last-minute bookings and premium services.
3. Embrace Sustainability: As more businesses commit to greener travel, sustainable flight options and carbon reporting will become table stakes—not nice-to-haves.
4. Be Flexible: Dynamic pricing and just-in-time negotiation strategies can help companies adapt to an ever-evolving market.
The Takeaway
“Travel prices are still rising, but the rate of increase is slowing,” says Patrick Andersen, CEO of CWT. “It’s a sign of a maturing post-pandemic travel economy, where demand remains strong, but buyers have more tools to manage it wisely.”
For global businesses, the 2026 outlook is cautiously optimistic. Travel remains essential for relationship-building, market expansion, and employee satisfaction—but controlling costs will require greater agility and smarter planning.
