CWT and the Global Business Travel Association (GBTA) published (10-Aug-2022) their 2023 Global Business Travel Forecast. Key projections include:
- Airfares will increase an estimated 48.5% in 2022 and 8.5% in 2023;
- Prices are expected to remain below 2019 pre-pandemic levels until 2023;
- Premium class tickets made up 6.2% of all tickets purchased in 1H2022. A rising share of premium class tickets will result in higher average fares as the average ticket price comprises economy and premium;
- International and cross border bookings are recovering across most regions, which will result in a higher share of international bookings and a corresponding higher average ticket price. Business travellers are likely to be willing to spend more on tickets, especially as availability reduces due to labour shortages.
The report stated the ongoing conflict in Ukraine, inflationary pressures and the risk of further COVID-19 outbreaks are the main forces exerting pressure on the business travel industry. CWT CEO Patrick Andersen stated: "Demand for business travel and meetings is back with a vengeance, of that there is absolutely no doubt. Labour shortages across the travel and hospitality industry, rising raw material prices and greater awareness for responsible travel are all having an impact on services, but predicted pricing is, on the whole, on par with 2019". [more - original PR]