Airfares and other travel costs are forecast to stay elevated throughout the rest of the year before price increases moderate next year.
But travel costs are unlikely to return to prior levels, as many of the forces driving higher prices have become long-term features of the industry rather than short-term disruptions, the Global Business Travel Association (GBTA) report says.
On average, 2027 global airfares are forecast to reach USD756, up 4.7% on 2025. Economy fares are projected to rise 8.7% in 2026 to USD536. Premium fares are tipped to rise 9.5% to USD4488, reflecting ongoing pressure on long-haul and premium travel markets. In 2027, airfare increases are expected to slow to 1.5% overall, 1.1% for economy fares and 2.2% for premium.
The Iran conflict and the closure of the Strait of Hormuz produced the largest oil supply disruption on record, the 2027 Global Business Travel Forecast says.
“In this environment, a well-managed travel program is essential.
Realising travel’s full value will depend on managed programs,’’ adds GBTA ceo Suzanne Neufang.
. . . Advice For Booking
With oil price premiums easing, now is a good time to lock in multi-year carrier agreements and fare-flexibility tools, the report advises travel managers. “The same surcharges that are receding would likely re-inflate if oil prices were to re-escalate again.” With across-the-board airfares forecast to rise 4.7% (with premium fares rising nearly twice as fast), that means travel budgets built on 2025 rates will undershoot air spend, particularly for programs with heavy long-haul or Middle East exposure. Carriers have the greatest pricing power on premium-heavy and corporate-heavy routes, and they are passing rising fuel cost through most aggressively there.
. . . On-ground Moves
Global hotel average daily rates are expected to rise 3.7% to USD168, followed by a 1.8% increase in 2027 to USD171. Car rental rates are tipped to rise 3.6% to USD46.50.
