Business Travel Outlook: BCD Travel Forecasts Rising hotel Costs and Identifies Key Risks for 2026
A new study by BCD Travel indicates that business travel in 2026 will be marked by increasing hotel rates and a range of potential disruptions, despite a generally moderate economic outlook. While global economic growth is projected at just 2.6 percent, and inflation remains above three percent, the impact on travel costs varies across sectors.
Hotel Costs Set to Rise Considerably
BCD Travel anticipates hotel costs will increase globally by 4.9 percent in 2026, outpacing growth in flight prices. This rise is attributed to factors including increasing personnel costs, leisure travel demand, and tax changes, lessening the need for hotels to prioritize corporate clients. The Middle East is expected to see the most considerable increases, with hotel rates potentially rising by eight percent. Latin America follows closely with a projected 6.4 percent increase. More moderate growth is forecast for North America (2.2 percent) and the Southwest Pacific (2.6 percent).
airfare Increases Remain Moderate
In contrast to hotels, airfare increases are predicted to be relatively contained. BCD forecasts a worldwide average increase of 1.1 percent. Intercontinental routes are expected to experience the most pressure,with potential inflation of 2.5 percent on routes to and from Africa and around two percent in Asia. North American airfares are expected to remain stable. However, BCD highlights that the primary challenge for travel programs isn’t price, but rather evolving airline conditions. These include declining value of corporate contracts,cost avoidance tactics by airlines,increasing fuel surcharges,mandatory NDC (New distribution Capability) requirements,and continued program losses.
Key Risks to Business Travel
The study identifies six central risk areas that could impact business travel in 2026: extreme weather events, geopolitical conflicts, changes in border and entry policies, cyberattacks, health threats from disease and epidemics, and limited accommodation and transportation options during major events. Companies are advised to adapt their travel programs to account for these potential disruptions.
rental Car Alternatives Gain Traction
Rental car prices are expected to rise by 2 to 4 percent, driven by increased repair costs, acquisition difficulties, surcharges, and parking fees. As a result, travelers are increasingly likely to utilize ride-sharing services and taxis for cost and convenience.
Sustainability Gains Momentum
Sustainability is becoming an increasingly significant component of business travel programs, though the sector remains in its early stages of progress. A survey by the Global Business Travel association assigned a maturity score of just 1.4 out of five. Currently, only nine percent of companies levy CO2 taxes, and 15 percent are investing in sustainable aviation fuel.
