Airline Prices Hit Two-Decade High as Business Travel Costs Climb 2.6%
Business travel is getting more expensive—and fast. New data from American Express Global Business Travel (Amex GBT) shows that the overall cost of business trips rose 2.6% in the second quarter of 2025, marking the fifth consecutive quarter of year-on-year increases. The sharp rise was driven largely by airfares, which saw some of the most dramatic price hikes in more than two decades. According to Amex GBT’s Business Travel Pulse, which tracks a weighted basket of typical corporate travel expenses, this surge reflects both a rebound in demand and intensifying competition for limited seats, hotel rooms, and rental cars. airfare price hikes 2025
The surge was largely driven by a dramatic 30.2% spike in airfares between June and July—the steepest jump for that period since the UK’s Office for National Statistics began tracking monthly data in 2001.
For many companies, these rising costs signal a pivotal moment. After years of uncertainty, businesses are no longer putting travel on hold; instead, they’re prioritizing in-person connections, client meetings, and international expansion. Yet, with airline prices spiking at rates not seen since the early 2000s and hotel rates creeping upward in key markets, the pressure on corporate travel budgets is real. Understanding the underlying trends—where costs are climbing fastest, what’s fueling the increases, and how demand is shifting across regions—has never been more important for travel managers and decision-makers.
What the Business Travel Pulse Tracks
The Business Travel Pulse aggregates costs across four main travel categories, weighted according to typical corporate travel programs:
- Airfare – 65%
- Hotel average booked rate – 25%
- Rail ticket price – 5%
- Car rental daily rate – 5%
Route Trends & Emerging Hotspots
- The fastest-growing international air route was Brussels–Helsinki, with Helsinki–Paris also among the top five, reflecting Helsinki’s growing prominence in European business travel.
What’s Driving the Cost Rise?
Sara Andell, Director of Consulting Strategy at Amex GBT, emphasized a shifting corporate mindset: “After a cautious start to the year, businesses are no longer waiting for economic certainty—they’re moving forward, recognizing travel as an essential part of growth, even in unpredictable times.” She points to rising demand, including competition for premium seats, rooms, and rentals, as a key factor pushing prices upward.
Additional Context: Hotels & Future Rates
While the Pulse focuses on Q2 2025, complementary reporting from Business Traveller adds further depth:
- Hotel rates are expected to remain stable overall but premium accommodations may see increases.
- London’s average hotel rate is projected to rise by 4.2%, with Amsterdam expected to see an even steeper increase of 11%.
- In the U.S., New York—still the top destination for meetings and events—may see hotel price increases of around 4%.
Summary at a Glance
| Category | Details |
|---|---|
| Q2 Cost Increase | +2.6% YoY overall business travel cost |
| Airfare Spike | +30.2% between June and July—the sharpest increase since 2001 |
| Main Contributors | Airfare (65% weight), with hotels, rail, and car rental making up the rest |
| Top Route Trends | Brussels–Helsinki (fastest growing), Helsinki–Paris among top five |
| Market Insight | Business demand rebounding, pushing up prices due to increased competition |
| Hotel Outlook | Premium hotel rate increases expected globally; London ( |
Final Thoughts
Amex GBT’s Q2 2025 Business Travel Pulse outlines a clear upward trend in business travel costs, propelled chiefly by unprecedented airline fare hikes. As businesses resume travel plans, competition for travel inventory is intensifying—making strategic travel management more critical than ever. Companies may need to reinforce negotiation capabilities, flexible policies, and technology-enabled rate tracking to manage escalating costs.
