The global economy has remained surprisingly resilient for the past year, but prospects for future growth may be more fragile in 2024. Unforeseen economic shocks and specific risks such as climate change, cybersecurity and geopolitics may impact business travel in the year ahead, according to the latest quarterly Travel Market Report from BCD Travel.

The forecast predicts continued uneven recovery in global air travel demand, resulting in a moderation of airfares. Globally, average ticket prices are expected to fall 0.8 percent, with regional fares dropping 0.9 percent and intercontinental fares 0.5 percent. 

Global business fares are expected to decline by 1.2 percent, steeper than the 0.8 percent drop in economy fares. Airfares are expected to rise in Africa and North America by less than 1 percent, while Asia, Europe, Latin America and Southwest Pacific are predicted to fall by more than 2 percent. 

Global hotel rates are expected to rise by 6.8 percent on average in 2024, according to BCD report. Although the pace of recovery shows signs of slowing, demand will continue to outpace available supply in many markets. Thus hoteliers’ have shifted focus from occupancy to average daily rates and revenue per available room.

“Hotels have adopted more sophisticated techniques for revenue and yield management in recent years,” said Jorge Cruz, executive vice president of Global Sales & Marketing at BCD. “Available rooms at preferred rates have been increasingly more difficult for business travelers to find. While it’s important for travel buyers to negotiate good rates, it’s equally important for those rates to be available when needed.”

Image: Wanan Wanan/Shutterstock