February 22, 2024

Lower airfares but higher hotel rates predicted for 2024

Global airfares will drop by 0.8% next year but hotel rates will climb by 6.8%, BCD Travel’s Q4 Travel Market Report predicts.

Regional air fares are forecast to fall by 0.9% and intercontinental fares by 0.5%.

At 1.2%, the forecasted fall in global business fares should be steeper than the 0.8% drop expected for economy tickets.

Meanwhile, global hotel rates are expected to rise by 6.8% on average in 2024. Demand will continue to outpace available supply in many markets.

The report says hoteliers’ concerns about occupancy have given way to a sharper focus on average daily rates and revenue per available room. Instead of trying to fill every room, hotels seem more willing to accept lower occupancy, limiting availability and then charging higher rates. 

The report also highlighted other trends that corporates need to consider.

It warned that risks – such as persistent high interest rates, bond market developments and geopolitical issues – could undermine or derail economic growth.

In addition to these macro risks, business travel may be impacted by climate change, cybersecurity, geopolitics, health, polarised politics and rising crime. 

Two-thirds of travel buyers consider environmentally sustainable travel to be very or extremely important and almost half have formal goals in place to make corporate travel more sustainable. 

The full report can be found at Travel Market Report.