The increase in travel costs is leveling off as 2023 moves into fall. The good news can’t come at a better time for travelers. Industry data shows airfares rose a shocking 72% in 2022 after the pandemic ended.
Steve Glenn, founder of Executive Travel, shared in his weekly newsletter on Sept. 6 that hotel prices increased by 30% and the daily cost to attend business meetings saw a “whopping 58%” increase.
The data comes from the Global Business Travel Association (GBTA).
There’s good news for 2023 and even better news for 2024.
“The good news for travelers is that the 2023 global travel costs have increased a moderate 2% for airfares, 4% for hotels and 5% for daily meetings,” Glenn told his subscribers. “Now the 2024 global travel costs are pouring in and once again airfares are anticipated to only rise about 2%, hotels 4% and 3% for daily meetings.”
Car rental rates are expected to rise just 2% in 2024.
Glenn, who has become an industry powerhouse and successfully advocated for such thigs as the concept of virtual agents, self-service booking, and $0 online fees, says the historic increases in travel costs is slowing down. “The bottom line is that the travel inflation we have witnessed the last two years is finally starting to moderate. And if the economy stutters my guess is that prices for international travel may see a slight drop in prices,” he says.
With the pandemic over, and the reset fully in place, Richard Johnson, global head of CWT Solutions Group says the industry needs to make some new comparissons. “The steep increases of 2022…mean it’s likely time to stop using 2019 as a baseline for comparisons, with 2022 the new baseline moving forward,” he told Business Travel News.
–Dwight Widaman | Metro Voice