Global car rental rates are forecast to increase 3.6% in 2026 before declining slightly in 2027, according to a new business travel forecast from the Global Business Travel Association and travel management company ALTOUR.

The report projects the average daily car rental rate will reach $46.50 in 2026, then decrease 0.9% to $46.10 in 2027. Car rental represents the largest component of managed ground transportation.

The anticipated increase follows a decline in average rental rates in 2025. GBTA and ALTOUR said improving vehicle supply and fleet availability should help moderate pricing pressure across most regions.

Asia-Pacific is expected to have the highest regional average in 2026, with daily rental rates projected to rise 4% to $57.70.

Business Travel Costs Remain Elevated

The car rental forecast is part of the organizations’ 2027 Global Business Travel Forecast, which examines expected pricing across air travel, hotels, ground transportation, and meetings and events.

The report identifies energy and labor as the two leading cost pressures affecting business travel. Higher fuel prices have increased transportation operating costs, while wage inflation, labor agreements, and workforce shortages continue to affect airlines, hotels, rental transportation, and event providers.

Although these pressures are expected to ease gradually in 2027, the report cautions that travel prices are unlikely to return to 2025 levels.

“The most acute impacts of the early 2026 energy-related inflation were beginning to ease, but we are likely to see elevated fuel-related inflation for the remainder of the year,” said Michael Boult, senior vice president and chief commercial officer of ALTOUR.

Airfare and Hotel Rates Also Increase

Air travel is expected to face the greatest pricing pressure. The average global airfare is forecast to rise 4.7% from 2025 to $756, while economy fares are projected to increase 8.7% to $536. Premium fares are expected to climb 9.5% to $4,488.

Airfare growth is forecast to slow in 2027, with the overall average increasing 1.5%.

Global hotel average daily rates are projected to rise 3.7% to $168 in 2026, followed by a 1.8% increase to $171 in 2027. Latin America is expected to record the strongest hotel rate growth in 2026, at 9.5%.

Meetings and events costs are also expected to increase. The average cost per attendee per day is forecast to rise approximately 3% to $263 in 2026 and another 1.5% to $267 in 2027.

Relief Rather Than a Return to Previous Pricing

GBTA and ALTOUR characterized the expected moderation in 2027 as relief rather than a reset. Aircraft delivery delays, labor shortages, sustainable aviation fuel requirements, and geopolitical uncertainty are expected to maintain a higher long-term cost base for business travel.

“Companies continue to invest in face-to-face connections, customer relationships and growth despite higher costs and greater complexity,” said Suzanne Neufang, CEO of GBTA.

The forecast combines historical travel pricing, macroeconomic indicators, industry performance metrics, publicly available market information, and econometric modeling developed by the Avrio Institute.