Anticipated Increase in Airfare Prices in 2023 According to American Express Global Business TravelFebruary 23rd, 2023
Anticipated Increase in Airfare Prices in 2023 According to American Express Global Business Travel
As the world continues to grapple with the COVID-19 pandemic, the travel industry has been hit particularly hard. With international borders closed and travel restrictions in place, many people have been unable to travel for work or leisure. However, as vaccines are being distributed and cases begin to decline, the travel industry is starting to look towards the future and make predictions about what the next year will bring.
According to American Express Global Business Travel (GBT), one of the world’s leading business travel management companies, airfare is expected to increase in 2023. In a recent report, GBT analysts noted that while airfare was relatively low in 2020 and 2021 due to the pandemic, they expect prices to start rising in the coming year as demand for travel begins to pick up.
Factors Affecting Airfare Prices
There are a number of factors that can impact the cost of airfare, including fuel prices, the strength of the economy, and competition among airlines. The COVID-19 pandemic has also had a major impact on airfare prices, as the decrease in demand for travel led to lower prices.
As the world begins to recover from the pandemic and more people feel comfortable traveling again, demand for air travel is expected to increase. This, combined with other factors such as rising fuel prices and a stronger economy, is likely to lead to an increase in airfare prices in 2023.
Impact on Business Travel
For businesses that rely on air travel for their operations, the anticipated increase in airfare prices could have a significant impact on their bottom line. Companies may need to budget more for travel expenses or look for ways to reduce the number of trips their employees take.
It’s important for businesses to stay informed about changes in the travel industry and plan accordingly. GBT advises companies to review their travel policies and consider implementing measures such as booking flights in advance and negotiating discounts with airlines.
While the future of travel remains uncertain, American Express Global Business Travel is confident that airfare will start to rise in 2023. By staying informed and making strategic decisions, businesses can minimize the impact of these price increases on their operations.
As always, it’s important to follow the latest travel guidelines and advisories to ensure the safety of employees and customers. By working together, we can all play a part in helping the travel industry recover and thrive in the coming years.