Widespread air fare price hikes around the world have been forecast due to a range of factors including inflation, rising fuel costs and capacity issues.
American Express Global Business Travel (Amex GBT) warned that price changes are likely to vary widely by region next year, with distinctions across the two hemispheres.
An annual forecast of air fare movements on key business travel routes suggests “modest” rises of 3.7% on key transatlantic services between Europe and North America.
But steeper increases of 6% for business class and 5.5% in economy are projected for intra-European flights as airline capacity recovery lags behind the resurgence of demand.
North American domestic fares are expected to see moderate rises of 3.4% in business class and 2.9% in economy as more capacity comes online in 2023.
Sharper price hikes are expected in Asia, with economy flights to and from Europe up 12% and 7.6% in the business cabin.
Asia-North America flights are also likely to see significant rises of 5.6% business and 9.8% economy, while Australian domestic flights are forecast to rise 19.4% in the business cabin.
Some countries in the Asia-Pacific region have been slower to reopen after Covid-19 travel restrictions, and an increase in demand combined with relatively strong economic prospects could put upwards pressure on prices, according to the Air Monitor 2023 report.
Amex GBT global business consulting vice president Julie Avenel said: “The volatile economic environment makes it challenging for travel teams to plan ahead. We want to equip our clients with the insights they need to build strong travel programmes.
“As consultants we want to go beyond travel with our clients, and help them anticipate changes in our industry, so this report also looks at trends such as sustainability and the future of work, and asks how travel teams can respond.”