Overall business travel prices are up by 20% for the final quarter of the year compared with the same period before the pandemic in 2019, according to new data.
This compares with a rise of 24% in the summer three months, 19% in the second quarter and 12% in January to March.
Air fares are 34% more expensive than before Covid after peaking at 60% up in April and May, travel management platform Travel Perk estimated.
However, European flights have started falling in price for the winter final quarter of 2022 compared with last year, with UK costs down 12%,
Of the ten routes with the steepest price drops, nine are to or from London. They include Munich-London (-38%), London- Budapest (-29%), London-Barcelona (-21%) and London- Berlin (-16%).
This comes after the same hubs saw price peaks in the third quarter with UK flights 96% more expensive than the year before, Spanish 64%, French 48% and German 45% more.
Flying for business from the US is now 10% cheaper compared to pre-pandemic prices – a likely reflection of fuel being cheaper in the US than in Europe, the study showed.
European accommodation prices have fallen by 7% compared to the July-September period, including in Spain (-10%), Germany (-7%), and France (-3%). Cities with notable hotel price drops included Edinburgh (-24%), Barcelona (-18%), Dublin (-15%) and Munich (-12%).
Hotel costs in Lisbon and Helsinki are up by 10% and 8% respectively in Q4 – perhaps as a result of the two major European technology conferences, Web Summit and Slush which took place in November.
Las Vegas is emerging as a hotel inflation hotspot with accommodation prices increasing by the second highest of any city tracked by TravelPerk in Q4, at 25% – after having already risen by 38%, the highest globally, in Q3.
After Las Vegas, the three next highest hotel inflation rates globally are all in US cities – New York (14%), Austin (14%) and Houston (11%). By contrast, Boston’s hotel prices are down by 21%, Chicago’s by 16%, and San Francisco’s by 13%, all following rises in Q3.
TravelPerk chief revenue officer JC Taunay Bucalo said: “2022 has seen a huge recovery in travel, particularly business travel, as companies from across the world have finally been able to put Covid behind them and bring teams together again in real life and reconnect in-person with their customers.
“That surge in demand, combined with a variety of other external factors, led to significant inflation this year in the cost of flights, rail and accommodation.
“It’s clear that demand remains high among business travellers, despite the price increases, but we do expect to see changes in booking patterns as employers and individuals adapt. For instance, by building in some flexibility to their travel plans and embracing emerging business hub destinations, companies can maximise value for money while still bringing teams together for key moments.
“When you book is also a factor. We are still seeing travellers making bookings much closer to their departure date than they did pre-Covid. Sometimes this is unavoidable, but booking ahead will always get you the best rates, even if you also pay a little more for flexible tickets.”