BCD 2026 Outlook: Hotel Prices Surge, Inflation Slows Travel Recovery

BCD Travel has released its 2026 Travel Outlook Report, outlining key trends and challenges for the upcoming year in corporate travel.

According to the report, global airfares are projected to rise modestly, increasing by about 1.1 percent. This relatively small adjustment is largely driven by weak fare inflation in the Americas, particularly North America, where year-over-year increases are expected to be 0.4 percent.

In contrast, other regions are likely to see higher airfare inflation. Africa and Asia are forecast to experience the strongest increases, with average ticket prices rising by 2.5 percent and 2.0 percent, respectively.

Hotel rates, however, are projected to grow at a faster pace. Average daily rates (ADRs) worldwide are expected to rise by approximately 4.9 percent in 2026.

The biggest jump of over 8 percent is predicted in the Middle East as markets rebound from two softer years. Latin America is also expected to exceed the global average, with ADR growth of about 6.4 percent. The smallest increases are forecast in the Southwest Pacific and North America, at 2.6 percent and 2.2 percent.

Car rental prices are also expected to climb between 2 and 4 percent, driven by rising vehicle acquisition costs, higher maintenance and insurance expenses, and ongoing fleet shortages. The price pressure is not limited to base rates, as more rental locations are adding city taxes, while many regions in the US are applying surcharges across entire states.

The report places these trends within the context of a fragile global economy marked by persistent inflation above 3 percent. This environment is expected to slow the pace of business travel recovery and increase the need for careful planning. BCD recommends that companies strengthen risk-management strategies and rely more heavily on data-driven tools to optimize travel programs and control costs.

Sustainability also plays a central role in the 2026 outlook. BCD stresses that organizations will need to move beyond long-term climate commitments to demonstrable, measurable progress.

The report also underscores a major equity issue. BCD notes that only about 10 percent of the world’s population has ever flown on an airplane, while frequent business travelers generate a large share of aviation emissions. BCD argues that more funds must be directed to support climate-impacted communities. It encourages companies to assess how their travel programs affect equity and to adopt more sustainable practices.

More than a week ago, BCD Travel officially joined NDC FastTrack, a program created by Accelya to accelerate the NDC adoption and implementation. In this initiative, BCD’s Travel Commerce Platform is set to take center stage by tackling the technical hurdles that have prevented many corporate travel players from fully embracing NDC.

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