[ad_1]
Global business travel and events costs are expected to grow throughout the rest of 2023 and into 2024. However, this climb is not expected to be as dramatic as in 2022.
This is according to the 2024 Global Business Travel Forecast, published by business travel and meetings specialist CWT and business travel trade organisation Global Business Travel Association (GBTA).
Due to rising fuel prices, labour shortages and challenges in the supply chain, alongside high levels of demands, travel prices increased dramatically in 2022 – surpassing the forecasted figures.
But because of the current climate of economic uncertainty and gradual easing of supply-side constraints, more subdued price increases are anticipated over the next 12-18 months, according to the report by CWT and GBTA.
“A potent combination of demand and supply-side pressures propelled travel prices higher than expected last year,” said Patrick Andersen, CWT’s Chief Executive Officer. “Looking forward, prices seem to be levelling off with much milder increases projected over the next 12 to 18 months. We could now be looking at the true new cost of travel. Our focus remains on helping our customers find the right strategies and solutions to get the most out of their travel budgets, meet their ESG commitments, and maximize the ROI on their travel spend.”
Cost predictions
The global average ticket price (ATP) of flights booked for business travel rose dramatically in 2022, experiencing record price increases. The ATP rose by 72.2 per cent year-on-year to $749 in 2022, surpassing 2019 levels ($670).
ATP growth is likely to be more modest at 2.3 per cent in 2023 and 1.8 per cent in 2024, albeit from an already high base. Still, many corporate buyers now have less leverage to negotiate with airlines, as their travel volumes remain below pre-pandemic levels.
Similarly, the global average daily rate (ADR) for hotel bookings exceeded earlier predictions, rising 29.8 per cent year-on-year to $161 in 2022. ADRs are projected to climb a further 4.3 per cent in 2023 to $168, followed by a 3.6 per cent increase to $174 in 2024.
Car rental prices rose 9.8 per cent year-on-year in 2022, with a further 6.7 per cent year-on-year increase forecast this year. Pricing growth is expected to be 2.1 per cent in 2024.
For event attendance, in-person meetings and events have rebounded strongly. CWT Meetings & Events has observed these trips becoming longer and more frequent, and expects the trend to continue. The average daily cost per attendee was $160 in 2022. This is expected to increase to $169 in 2023 and then $174 in 2024.
[ad_2]
Source link