The key trends impacting business travel in 2027
Business travel costs are expected to remain elevated through the rest of 2026 before pricing growth moderates in 2027, according to the GBTA 2027 Global Business Travel Forecast.
For businesses planning their 2027 travel budgets, expect some relief from the sharp price increases of 2026, but not a return to earlier pricing levels.
While elevated fuel costs have recently shown signs of easing, ongoing conflict in the Middle East continues to deliver oil price volatility. Higher labour costs, aircraft shortages, sustainability requirements and capacity constraints also continue to influence the cost of corporate travel. These pressures will affect airfares, accommodation, car rental, meetings and the overall business travel experience.
The GBTA outlook also varies considerably by region. For Australian businesses, the Asia-Pacific forecasts provide the most relevant regional benchmark. Let’s explore the insights in more detail.
Key Insights: Business travel prices are expected to moderate, not reverse
The report describes the outlook for 2027 as a period of normalisation rather than reversal.
The first half of 2026 was shaped by a major energy shock, which drove up crude oil and jet fuel prices and increased pressure on airline operating costs. While fuel prices are expected to ease in 2027, several structural costs will remain embedded across the travel sector.
Labour is identified as the dominant non-fuel cost driver. Unlike an intermittent fuel spikes, wage increases are often supported by multi-year contracts and statutory wage floors. The report notes that Qantas short-haul pilots are covered by an agreement providing an approximate 25% pay increase over five years.
Aircraft delivery delays, workforce shortages and sustainable aviation fuel requirements are also expected to maintain a higher cost base.
For business travel budget planning, this means 2027 should be treated as a year of partial relief, not a return to 2025 pricing.
Air: Airfares expected to continue to rise, particularly in Asia-Pacific
Global blended airfares are forecast to increase by 4.7% in 2026 before growth slows to 1.5% in 2027.
| Global airfare category | 2026 forecast | 2027 forecast |
|---|---|---|
| Blended airfares | +4.7% | +1.5% |
| Economy airfares | +8.7% | +1.1% |
| Premium airfares | +9.5% | +2.2% |
Asia-Pacific is experiencing particularly strong pressure.
Average airfares across the region are forecast to rise by 6% in 2026. Economy fares are expected to increase by 9.2%, while premium fares are forecast to rise by 18.6%, the highest premium-fare increase across the four regions covered.
Growth is expected to slow significantly in 2027, with Asia-Pacific economy fares increasing by 2.5% and premium fares by 2.4%.
The report attributes this pressure to demand growing faster than available fleet capacity. Strong long-haul demand is also competing for a constrained supply of widebody aircraft.
This is particularly relevant to Australian travel programs with significant long-haul or premium-cabin requirements. The report recommends locking in air capacity and rates early on premium-heavy and corporate-heavy routes, where airlines have the greatest pricing power.
It also warns that travel budgets based on 2025 airfares are likely to underestimate actual air spend.
Accommodation: Hotel rates will rise faster in Asia-Pacific than globally
Global hotel average daily rates are forecast to increase by 3.7% in 2026, from US$162 to US$168. Growth is then expected to ease to 1.8% in 2027, taking the global average to US$171.
Asia-Pacific hotel rates are expected to rise more quickly:
| Asia-Pacific hotel rates | Average daily rate | Annual change |
|---|---|---|
| 2025 | US$139 | +0.7% |
| 2026 | US$146 | +5.0% |
| 2027 | US$149 | +2.1% |
The report identifies Asia-Pacific and Latin America as the regions with the fastest hotel rate growth.
At a global level, hotel demand remains firm, but new supply is helping to contain rate increases. The worldwide hotel construction pipeline reached approximately 15,922 projects and 2.4 million rooms in late 2025, with around 2,600 new hotels expected to open in each of 2026 and 2027.
Labour availability remains a source of pressure. The Asia-Pacific hotel development pipeline outside China exceeded 2,200 projects and 430,000 rooms by late 2025, increasing demand for hospitality workers.
For accommodation programs, the report recommends considering multi-year agreements while hotel supply growth is keeping group rates below inflation.
Car: Car rental prices are expected to stabilise
Car rental is forecast to be one of the more stable business travel categories in 2027.
Global average daily rental rates are expected to rise by 3.6% in 2026, from US$44.90 to US$46.50, before falling by 0.9% to US$46.10 in 2027.
Asia-Pacific remains the most expensive region in the forecast:
| Asia-Pacific car rental | Average daily rate | Annual change |
|---|---|---|
| 2025 | US$55.50 | +2.2% |
| 2026 | US$57.70 | +4.0% |
| 2027 | US$57.50 | -0.3% |
The report says rental prices are influenced more by fleet management, vehicle acquisition costs and used-car market conditions than by broad swings in travel demand.
A growing supply of off-lease vehicles is expected to reduce fleet acquisition costs and help soften rates in 2027. However, operators are continuing to manage fleets carefully to maintain high utilisation and firm pricing.
Meetings and Events: Budgets will keep growing
Meeting demand and budgets are both rising, but higher budgets are largely maintaining event quality rather than expanding the number of programs.
The daily average cost per delegate is forecast to rise by 3% in 2026 and 1.5% in 2027, reaching US$267.
Food and beverage costs within managed programs are increasing by approximately 5% to 8%, while production and labour costs are rising by 6% to 10%. Group accommodation rates remain comparatively contained.
The report finds that larger, more production-intensive events are absorbing a growing share of total meeting budgets. It also reports that 72% of planners expect cost pressure in the year ahead, while 63% identify engagement as their primary measure of success.
This creates a sharper focus on event format, destination, scale and the meetings that warrant the greatest investment.
What should businesses prioritise for 2027 travel budget planning?
The 2027 business travel outlook points to a more manageable pricing environment, but one that remains expensive and exposed to risk.
Travel programs should plan at a category and regional level rather than applying one broad inflation assumption across the entire budget. Air, hotel, car rental and meetings costs are moving at different rates, with Asia-Pacific airfares and hotel rates presenting particular pressure.
The report also cautions that actual outcomes will vary according to destination mix, booking behaviour, negotiated supplier agreements, cabin and hotel class, trip duration, seasonality and individual program composition.
The key business travel trend for 2027 is not falling prices. It is slower price growth, greater predictability and a stronger need for disciplined, data-led travel program planning.
