Business Travel Expenses Are Expected To Rise Further

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According to a news release issued on August 10 by business travel and meeting expert CWT and the Global Business Travel Association GBTA, continuing economic uncertainty and a gradual loosening of supply-side restraints are expected to result in more moderate price rises than the record gains in 2022.

According to the statement, higher fuel prices, manpower shortages, and supply chain challenges, as well as consumer demand and corporate customers having less clout, have all contributed to a rise in business trip ticket prices.

CWT President and CEO Patrick Andersen remarked in the statement, “Prices appear to be leveling off, with much milder increases projected over the next 12 to 18 months.” “We could now be looking at the true new cost of travel.”

According to Bloomberg, price increases are also being pushed by airlines taking longer than expected to get aircraft out of storage and back into the air, attempting to hire the appropriate number of cabin crew and pilots, and waiting for new planes to be manufactured. At the same time, passenger traffic has returned to 94% of pre-COVID levels.

“Demand is outpacing capacity growth,” Willie Walsh, Director General of the International Air Transport Association (IATA), noted in the research.

On August 1st, Marriott International reported strong second-quarter earnings, thanks to a continuing resurgence in global lodging demand.