Business Travel Forecast Shows Costs To Remain Elevated In 2024
According to a newly released survey by CWT and the Global Business Travel Asssociation (GBTA), business travel and events costs are set to climb higher through the remainder of 2023 and into 2024 – although it will be at a much more moderate pace than the exceptionally steep increases seen in 2022.
The 2024 Global Business Travel Forecast,
Rising fuel prices, labor shortages, and supply chain challenges, coupled with red hot demand, caused travel prices to skyrocket in 2022 – far surpassing some of the increases outlined in last year’s forecast.
Lingering economic uncertainty and a gradual easing of supply-side constraints are expected to result in more subdued price increases over the next 12-18 months, according to the 2024 Global Business Travel Forecast, which uses anonymized data generated by CWT and GBTA, with publicly available industry information, and econometric and statistical modeling developed by the Avrio Institute.
Patrick Andersen, CWT’s Chief Executive Officer, observed that: “A potent combination of demand and supply-side pressures propelled travel prices higher than expected last year.”
Andersen continued: “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.”
The GBTA’s CEO, Suzanne Neufang said that: “As this research outlines, it’s clear that rising costs and pricing pressures will likely continue to be a significant factor in business travel for the foreseeable future. And as we experienced over the past few years, we may also continue to see different pricing fluctuations across industry verticals, business sectors and global regions.”
Neufang continued: “While business travel continues to rebound, there will be a continuing balancing act among demand, cost, and ESG concerns. So, with a forecast ahead for more volatility, our goal is to provide insights like these to help travel buyers, suppliers, intermediaries and finance executives continue to understand, evaluate and adjust their business travel strategies.”
To view the full report, click here.
