Business travel managers and corporate procurement officers received a cautiously optimistic outlook for global travel costs in 2026, as projected by travel management giant CWT and the Global Business Travel Association (GBTA) in their latest Global Business Travel Forecast. The forecast, presented at GBTA’s annual convention in Denver, indicates that after several years of pandemic-induced volatility and price surges, costs for airfares, hotels, and car rentals are set to moderate, paving the way for more stable program planning and budget predictability for companies worldwide.

Key Projections for 2026

Global Average Airfares: The forecast anticipates a modest 0.4% increase in global average airfares, nudging the average ticket price up just $3 to $708. This contrasts with a sharper 2.2% decline expected by the end of 2025, signaling an end to the wild fluctuations experienced in the years following the COVID-19 pandemic. Airlines have been increasing capacity as travel rebounds, although challenges such as delayed aircraft deliveries and fluctuating fuel prices remain in play.

Hotel Daily Rates: Corporate negotiators can expect global hotel daily rates to rise by 1.2% to an average of $166 per night, a similarly tempered increase compared to previous years. While global demand for in-person meetings and conferences is still high, an increase in hotel inventory and a slower pace of new hotel construction are helping contain prices—especially in major business hubs.

Car Rental Prices: Average daily car rental rates globally are projected to climb 2.8% to $48, representing a notable cooldown following 2024’s 6.1% jump. The rebound in vehicle availability, as supply chains realign and automotive production normalizes, is key to easing price inflation in this segment.

Meetings & Events: The cost per attendee of meetings is forecast to grow 2.4% year-over-year in 2026, largely mirroring inflation trends across major economies. This includes costs for venues, events technology, and other related services, which continue to adapt to hybrid models and evolving traveler expectations.

A Return to Leverage for Travel Buyers

“This year’s forecast shows encouraging signs that business travel pricing is normalizing further—and that’s creating real opportunities for corporate travel buyers,” said Patrick Andersen, CEO of CWT. In the current environment, buyers are regaining leverage in negotiations with suppliers, enhancing opportunities for companies to optimize travel policies, address traveler satisfaction, and control costs more effectively.

The stabilization comes after several tumultuous years for the travel industry. In 2022 and 2023, pent-up demand and constrained supply drove both airfare and hotel rate escalations in double digits across many markets. As supply has caught up and demand plateaued, price pressures have eased. For the first time since before the pandemic, travel managers are seeing a landscape that allows for more precise and strategic planning of meetings, events, and business trips in line with organizational goals.

Supply, Inflation, & Macro-Economic Trends

The CWT/GBTA forecast is underpinned by economic modeling (via the Avrio Institute) that considers both proprietary booking data and broader economic indicators. Increased airline seat capacity—despite ongoing manufacturer delays—and rising hotel room stock are both contributing to the normalization of prices. However, persistent inflation (with rates settling around 2–3% in most G20 economies), geopolitical risks, and continued labor shortages in hospitality and aviation temper expectations for rapid cost reductions.

2025 has seen a mix of headwinds, from volatile fuel prices following global political uncertainty to lingering inflationary impacts across North America and Europe. Yet, barring a sharp global recession, CWT and GBTA expect the next 18 months to bring steadier cost growth, offering much-needed breathing room to a sector still navigating post-pandemic recovery.

Downturn Scenario: Planning for Uncertainty

While the baseline forecast suggests only incremental increases in travel expenses, CWT and GBTA have modeled an alternate scenario should the global economy slip into recession. In this event, average costs across airfares, hotels, and car rentals are each projected to decline by 1–2% in 2026 versus 2025. Reduced business travel demand and increased supplier competition would likely drive competitive pricing, providing temporary relief to travel budgets. However, the report advises organizations to remain agile, as swift economic recoveries could quickly reverse these advantages.

What This Means for Corporate Travel Programs

• Budgeting: Companies can plan for slight increases, but less uncertainty in 2026 compared to past years, enabling better spend forecasting.
• Supplier Negotiation: With markets normalizing, there’s renewed opportunity for strategic negotiations and consolidating preferred agreements.
• Traveler Experience: Improved flight, hotel, and car rental availability should reduce friction and traveler complaints.
• Program Flexibility: As always, agility remains key—travel managers should prepare contingency plans for sudden macroeconomic shocks.

Suzanne Neufang, CEO of GBTA, summed up the mood: “The indicators are pointing to a more predictable era ahead for business travel pricing, with travel managers navigating a landscape that’s steadier than the post-pandemic surge. However, that landscape will continue to be shaped by inflation, supply constraints, and evolving traveler expectations.”

Looking Ahead

Despite ongoing uncertainties in global economics and regional politics, the business travel ecosystem is on track for greater pricing stability in the medium term. Technology advances—such as integrated booking tools and improved expense automation—will empower companies to further optimize travel spend. Meanwhile, sustainability trends, traveler wellness, and personalized experiences remain top priorities for both suppliers and buyers as they adapt policies for the future of work.

Overall, the 2026 outlook is a welcome signal for organizations prioritizing responsible cost management and employee safety while maintaining meaningful in-person connections in an increasingly virtual world.