As the demand for travel is increasing, travel prices for businesses are also likely to increase through 2023. The prices are already surging and are expected to keep increasing in the coming year.
According to the reports published by the Global Business Travel Association and CWT in the 2023 Global Business Travel Forecast, the rising fuel price and labor shortages are some of the reasons behind this rise in price.
The senior director at Solution Groups, CWT, Richard Johnson, mentioned:
We’re confident it’s as robust as it can be, given the level of uncertainty we face.
According to CWT, airfare will have an average rise of around 48% in 2022. This will increase in 2023. That is not all. Prices of car rentals are also likely to increase, and so are the hotel rates, which might increase by 18.5%.
Source: 2023 Annual Global Business Travel Forecast
“The cost of labor, food and beverage, and energy are all going to drive hotel rates up,” Johnson added.
A cautionary note was released with the report. It stated some of the international events that have affected inflation. Some of them are the Russia-Ukraine War and the risks of further Covid outbreaks.
The projections that the CWT took into account for the 2023 Global Business Travel Forecast included several things like the statistical models of the Global Business Travel Association and the information from the IMFR or International Monetary Fund Research.
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