According to the 2023 Global Business Travel Forecast, the global travel prices are expected to continue increasing over the remainder of 2022 and through the entirety of 2023.
The report was published by the travel management platform, CWT, and the Global Business Travel Association (GBTA) this week. It specified the forecast for flight and hotel prices around the globe following the recovery of the travel industry from the Covid-19 pandemic that began in March 2020.
According to the report, flight and hotel prices are expected to rise by more than 8% each year. The report also predicted the increase of global travel prices in air fares, which is expected to increase by 48.5% by the end of 2022 in comparison to 2021, with an even further increase by 8.45% in 2023. Ground transportation is also expected to increase, with a rise of 7.3% predicted for the end of 2022 and 6.8% predicted for 2023. Hotel rates are expected to rise by 18.5% by the end of 2022 and 8.2% in 2023.
These price increases are expected to come following the pandemic in reaction to the rising fuel prices, labour shortages, and inflationary pressures on raw material costs.
Patrick Andersen, CWT’s chief executive, said, “Demand for business travel and meetings is back with a vengeance, of that there is absolutely no doubt.
“Labour shortages across the travel and hospitality industry, rising raw material prices, and greater awareness for responsible travel are all having an impact on services, but predicted pricing is, on the whole, on par with 2019.”
In comparison to these steep rises in global travel prices, the CWT and GBTA claimed that airfares fell 26% in 2021 following a 12% drop in 2020, both during the height of the Covid pandemic’s effect on the travel industry. This means that these increases in pricing over 2022 still won’t bring the prices back to the level of 2019, despite a 48.5% increase.
According to travel companies around the world, the global travel prices increase has been noted, with hotel rates rising 22% in North America and hotel rates predicted to rise 31.8% across Europe, the Middle East, and Africa.
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