Navigating Modest Airfare Increases and Rising Hotel Costs

BCD Travel’s 2026 Business Travel Outlook highlights modest increases in airfares and significant rises in hotel rates, while emphasizing the importance of strategic risk management and sustainability in corporate travel programs.

BCD Travel has released its 2026 Business Travel Outlook, providing insights into expected trends in air travel pricing, hotel room rates, car rentals, and sustainability initiatives. The report offers a comprehensive analysis of the risks and strategies that corporate travel programs should consider in the coming year.

Economic Context and Risk Management

The global economic landscape in 2026 is projected to experience slow growth, with Oxford Economics predicting a growth rate of 2.6%, the weakest since 2009, excluding 2020. Inflation is expected to average above 3%, presenting challenges for businesses worldwide. BCD Travel identifies six primary risks that could impact business travel: extreme weather events, regional tensions, changing border policies, cyberattacks, health threats, and limited accommodations during large events.

To mitigate these risks, BCD Travel recommends leveraging travel risk intelligence solutions, creating contingency plans, and utilizing expert visa and immigration services. The company’s Traveler Security Program Assessment provides real-time incident and destination intelligence to help organizations stay ahead of potential disruptions.

Air Travel Pricing Trends

In 2026, global airfares are expected to experience modest inflation, with average ticket prices rising by 1.1%. The intercontinental air travel market primarily drives this increase. While airfares in the Americas, particularly North America, will see limited growth, regions like Africa and Asia are expected to experience stronger inflation at 2.5% and 2.0%, respectively.

BCD Travel’s Advito consultancy has identified key trends for travel buyers, including reduced value in airline corporate contracts, rising airline fuel surcharges, and the impact of New Distribution Capability (NDC) offerings. Advanced analytics tools such as the Airfare Predictor and Dynamic Performance Management dashboards are recommended to help travel managers navigate these changes.

Hotel Rate Projections

Global hotel rates are forecasted to increase by 4.9% in 2026, with variations across different regions. Factors such as rising labor costs in Turkey and strong leisure demand in Japan contribute to these changes. The Middle East is expected to see the highest inflation rate at 8%, while Latin America will average 6.4%. The Southwest Pacific and North America will experience the lowest increases at 2.6% and 2.2%, respectively.

BCD Travel’s Stay by BCD Travel solution offers a technology-driven approach to optimize hotel programs, helping clients manage costs and access the best available rates through automated reshopping and data-driven program optimization.

Car Rental and Alternative Transportation

Car rental rates for corporate customers are anticipated to rise due to factors such as acquisition and repair costs, city surcharges, and higher parking rates. BCD Travel suggests that corporate travelers consider alternative transportation options, such as ride-hailing and taxis. The expected rate increases for car rentals in 2026 will be slightly lower than in 2025, ranging from 2% to 4%.

Sustainability as a Strategic Priority

Sustainability is becoming a strategic business priority in 2026, with companies moving from pledges to measurable actions. According to the Global Business Travel Association (GBTA), overall sustainability maturity remains low, with only 9% of companies applying carbon fees and 15% investing in sustainable aviation fuel. BCD Travel’s Sustainability Solution aims to close this gap by providing an end-to-end ecosystem for emissions reporting, traveler engagement, and decarbonization investments.

Conclusion

BCD Travel’s 2026 Business Travel Outlook underscores the importance of strategic planning and proactive measures in managing corporate travel programs. With modest increases in airfares, significant rises in hotel rates, and a growing emphasis on sustainability, organizations must leverage advanced tools and solutions to navigate the evolving travel landscape effectively.

For more information and region-specific forecasts from the 2026 Outlook, download the full Travel Market Report.