Foreword
We have been benchmarking demand and pricing for 2023 and 2024, versus business travel three years ago to better understand the current state of the industry. However, the world has changed dramatically, with many in the industry questioning what the future holds.
Astounding price rises, defying most predictions, are now the norm. Elevated costs look set to stay with us in the year ahead, but with muted increases going forward. This new era could reflect today’s true cost of business travel. However, these changing industry dynamics offer a potentially generational opportunity to shift expectations in terms of how much it should cost to travel for business and how the industry should address this shift.
Demand for corporate trips is still high with a significant focus on revenue-generating travel as a priority. But corporate travel now competes head on with pent-up demand from leisure travelers, as well as against a headwind of economic constraints. Understanding pricing trends and 2023 global supply chain challenges is therefore crucial at this stage of the economic cycle. A heady cocktail of complex factors now influences business travel pricing. This year’s forecast uncovers these factors, providing buyers a better understanding of the forces fueling those changes that are currently in play. Only then can they plan for the future. The question is: do you have a resilient and agile business travel buying strategy? This forecast can help.
Travel demand remains almost universally strong, globally. The post-pandemic rebound will have significant ramifications for business travel pricing both today and in the years ahead. Despite Covid-related restrictions being lifted across the globe, the industry is still playing catch-up on some levels.For business travelers as well as for the travel industry, 2023 and 2024 will present a dynamic environment characterized by economic uncertainty and heightened volatility amid complex global political situations affecting certain regions.Rises in the cost of business travel also raise many questions. Are higher prices here to stay as the new normal? What is the real price for travel today? Do higher business travel costs need to be factored into a higher cost of doing business overall? What should companies be thinking about now to anticipate and prepare for, to do what's best for their organizations and their travelers in terms of in-person meeting opportunities? Amidst these questions, there is no doubt that business travel and the in-person meetings they enable will continue to be a vital catalyst for the growth and advancement of economies, organizations and people worldwide. We hope this forecast provides actionable insights to help navigate what's coming next for the global travel industry.
