Business Travel & MICE prices tend to moderate worldwide

Global business travel and events prices appear to be moderating after the sharp increases seen in recent times. The 2025 forecast, published by CWT and the Global Business Travel Association (GBTA), reveals that, while they will continue to rise, the pace will be noticeably slower during 2024 and 2025.

 

“While we have seen significant volatility in travel costs in recent times, our latest data suggests that a period of relative stability lies ahead, says Patrick Andersen, president and CEO of CWT.

Companies can expect a more predictable pricing environment during 2024 and 2025, allowing for better budget planning. However, price regularity is fragile. Geopolitical factors, inflationary pressures and environmental, social and governance (ESG) concerns remain critical.

According to the study, the coming years will require a strategic approach that balances cost management with sustainability, innovation and responsiveness to market changes.

AÉREO

According to “CWT/GBTA 2025 Annual Global Business Travel Forecast”, in 2023, the average global airline ticket price (ATP) was $688, representing a slight decrease of -1.6% from the previous year.

Europe, the Middle East and Africa (EMEA) recorded an ATP of $785 last year, the highest of all regions. North America (NORAM) was the region with the strongest growth rate, with ATP increasing by +4.3% to 777 dollars. In contrast, ATP in Asia-Pacific (APAC) plummeted -7% in 2023 to 488 dollars, after a sharp post-pandemic increase the previous year.

Demand for flights remains strong globally. According to IATA, a récord of 5 billion annual passengers is expected to be reached in 2024, surpassing 2019's peak of 4.5 billion. Meanwhile, supply chain constraints, such as aircraft production issues and delays, as well as a focus on profitability, will also keep prices high.

The forecast calls for global ATP to rise to $701 (+1.9%) in 2024 and $705 (+0.6%) in 2025. North America is expected to record the steepest increase globally this year, with PTA reaching $804 (+3.5%), followed by $808 (+0.5%) in 2025. ATP in Latin America (LATAM) is forecast to rise to $673 (+2.6%) in 2024 and $684 (+1.6%) in 2025.

In EMEA, ATP is projected to increase to $797 (+1.5%) in 2024 and $808 (+1.4%) in 2025, reflecting moderate growth amid inflationary pressures. In Asia-Pacific (APAC), ATP is expected to increase to $677 (+2.3%) in 2024 and $688 (+1.6%) in 2025 as the region continues to increase intraregional travel.

ACCOMMODATION

The global average daily room rate (ADR) increased +3.9% in 2023 to USD158, following a +30% increase in 2022. LATAM recorded the largest price gains in 2023, with an ADR increase of +10.7% to USD93. APAC was not far behind, posting an ADR increase of +7.4% to USD 131.

Occupancy levels recovered to pre-pandemic levels in some markets, while group business travel for meetings and events benefited. However, there is still a lack of new hotel supply. These factors will continue to support higher prices, with global ADR forecast at +2.5% to $162 in 2024 and a further +1.9% to $165 in 2025.

ADRs in LATAM are projected to rise to $102 (+9.7%) in 2024 and $110 (+7.8%) in 2025, due to several factors, including healthy domestic and intraregional travel demand and broader inflationary trends in the region. ADR growth in APAC is expected to cool, reaching $136 (+3.8%) this year and $139 (+2.2%) next year. Smaller increases are anticipated in EMEA and NORAM as leisure demand softens.

RENT-A-CAR

Global car rental prices increased +3% to $44.30 per day in 2023. LATAM saw the steepest increase, with prices soaring +14.2% to an average of $35.30 per day. NORAM and EMEA saw more modest increases, with prices rising to $55.60 per day (+1.3%) and $48.80 per day (+2.5%), respectively.

Looking ahead, overall price growth in 2024 is likely to moderate and decelerate to +2.5 %, with an average daily rate of 45.40 día. A similar growth rate of +2.4 % is forecast for global rates in 2025, with prices rising to US$46.50.

LATAM is expected to continue to see strong price increases of +11 % in 2024 and +7.9 % in 2025. On the other hand, car rental rates in APAC are on a downward trend, with prices expected to fall significantly by -6.8% in 2024, followed by a further reduction of -3.4% in 2025.

MEETINGS & EVENTS

The meetings and events sector has rebounded strongly post-pandemic, with increased demand for in-person engagements. In 2023, the average daily cost per attendee fell to $155, down from $160 in 2022, representing a -3.1% decrease. This decrease can be attributed to a shift in the types of meetings being held.

Many organizations opted for smaller, business-focused meetings, often without expensive incentive components, to manage budgets more effectively. This focus on cost control, including selecting more affordable venues and destinations, helped offset rising prices for lodging and food and beverage.

Looking ahead, the average daily cost per attendee is projected to rise to $162 in 2024, a 4.5% increase over 2023, and to approximately $169 in 2025, a further 4.3% increase. This upward trend reflects the continued recovery of the industry and the growing appetite for larger and more complex in-person events.