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Image Credit Emburse
Emburse has released the latest edition of its Business Travel Snapshot. The report reveals year-over-year hotel and airline pricing trends and offers a forecast for 2025.
Emburse’s data revealed that hotel and airline rates continued to increase through 2024, but discounts became more aggressive:
- Market airfares increased by 7.4% from November 2023 to November 2024, while negotiated fares increased 5.4%. However, the discount gap between market and negotiated fares widened from 14.3% to 16.3% during this period, offering enhanced savings opportunities through corporate agreements.
- Hotel market rates increased 5.4% and booked rates increased 4.5%. Again the discount rate widened to 22.6%, significantly higher than the 5-10% seen coming out of the pandemic. In particular, Chicago, London, and Toronto have seen substantial increases in hotel rates of 12-14%, while cities like Scottsdale, Barcelona, and Boston have moved in the opposite direction, with hotel rate decreases of 4-11%.
Emburse expects airlines to attempt to increase fares for business travel through 2025 to offset lost revenue from the leisure travel sector. Hotel rates are predicted to rise 5-7% in the first half in the U.S. and Europe and flatten out in the second half due to lower inflation and greater capacity as hotels open a record number of new properties.
The Emburse Travel Snapshot outlines strategies for corporate buyers as they enter negotiation season. It includes how to budget appropriately given rate increases and where to focus negotiation efforts with airlines and hotels. It also explores the impact of NDC and AI on corporate travel.
“With business travel volumes expected to surpass pre-pandemic levels in 2025, and both hotel rates and airfares expected to increase, corporate travel managers will be looking for ways to predict and manage their spending. In particular, corporate buyers will start to rely on AI to mine corporate travel and expense data to best predict volumes by market, per diems by location, acceptable rates and fares and more,” said Steve Reynolds, Chief Strategy Officer at Emburse and author of the report.
To download the Emburse Business Travel Snapshot, visit the Emburse website.
