According to global business travel forecasts for 2025, According to a report released by business travel and meetings company CWT and the Global Business Travel Association (GBTA), the cost per day per meeting participant is expected to rise 4.3% to $169 by 2025. The cost of space and labor rises, impacting budgets.
In 2023, the average daily cost per attendee drops to $155. Down -3.1% from $160 in 2022. This decrease is due to changes in the types of meetings held. Many are smaller and more business-focused. Expensive incentives have been eliminated in order to manage budgets more efficiently.
A focus on cost control, including choosing more affordable venues and destinations, is helping to offset rising accommodation and food and drink prices.
With many events now being hybrid, event technology costs are also rising.
Air ticket prices are expected to rise by 0.6% globally by 2025, according to CWT’s analysis of tens of millions of passenger bookings. In addition, global hotel room prices are expected to increase by 2.6% in 2025.
2019 is no longer the benchmark
The report said it is not recommended to use 2019 as a comparison. “Last changes on the supply side have created a ‘new normal,'” said Rich Johnson, vice president of CWT’s Solutions Group. “Therefore, using 2019 as a baseline for comparative spending measurement is no longer helpful.”
It is expected that many companies and event professionals will adopt the “zero-based budgeting method”. This involves decomposition meetings. And go through each expense category by category to determine which ones are necessary from the beginning. This is more accurate than taking last year’s budget and adding inflation adjustments.
Additionally, price increases vary by location. Some parts of the world will see larger cost increases. For example, ground transportation in Latin America is expected to grow 11% this year and 7.9% next year.
In the Asia-Pacific region, prices are expected to grow by 2.3% this year and 1.6% in 2025.
Last year, the average price of a business trip in Europe, the Middle East and Africa was $785. Prices are expected to rise 1.5% this year. Next is 1.4%.
