Business travel costs are rising at their fastest pace in over a year and are set to climb further in 2026, according to American Express Global Business Travel’s (Amex GBT) latest Business Travel Pulse report.
The company’s Business Travel Price Index, which draws on Amex GBT’s data and economic analysis, shows that prices were 2.6 per cent higher year on year in the second quarter of 2025. That marks a sharp acceleration from the first quarter, when costs rose by just 0.6 per cent. The index gives greatest weight to airfares, which make up 65 per cent of the measure, followed by hotel rates at 25 per cent, with rail and car rental costs contributing the remaining share.
Looking ahead, Amex GBT forecasts that hotel prices in some of the world’s busiest business hubs will continue to climb in 2026, with demand pressures pushing accommodation costs higher. In North America, Toronto is expected to lead the increases with rates projected to rise by 5.8 per cent, while New York is set for a 4 per cent jump. In Europe, Madrid is forecast to see hotel prices grow by 4.8 per cent, London by 4.2 per cent, Berlin by 3.7 per cent and Paris by 2.4 per cent.
The upward trend is not limited to the US and Europe. In South America, hotels in Buenos Aires are expected to become 5.6 per cent more expensive and Rio de Janeiro 5 per cent. Cape Town in South Africa is projected to see an increase of 4.7 per cent, while Bengaluru in India is forecast to lead the global pack with a 6.4 per cent rise.
These predictions are based on Amex GBT’s extensive travel data combined with economic projections from the International Monetary Fund, modelled using open-source forecasting software. The results point to a sustained increase in business travel costs over the next 18 months, particularly in hotel accommodation, adding further pressure to corporate budgets already challenged by inflation and higher airfares.
For companies managing global travel programmes, the report highlights the need for careful planning, stronger negotiations with suppliers and early booking strategies if they are to keep rising costs in check.