BCD projects slight airfare & moderate hotel rate increases in 2026

BCD projects global average air ticket prices will increase 1.1 per cent year over year in 2026, although that is skewed by "weak airfares inflation in the Americas."

The average ticket price in Europe is projected to increase by 1.5 per cent and in North America by 0.4 per cent, according to the forecast. In other global regions, the increase is expected to be as high as 2.5 per cent in Africa, while Asia is expected to see increases of 2 per cent.

On a global basis, intercontinental airfares are expected to increase at a higher rate than regional airfares, according to BCD.

The report forecasts an increase of 1 per cent year over year in regional business class fares and an increase of 0.9 per cent in regional economy fares. Intercontinental fares will be up by 2.2 per cent in business class and by 2.4 per cent in economy, according to the report.

While the global numbers show economy and business class fares increasing at close to the same rate, that also is skewed by North America's "clear exceptionalism," BCD said. 

Business class fares in Europe are expected to rise by 1 per cent year over year on regional routes and by 3 per cent on intercontinental routes, compared with a 1 per cent increase on regional-route economy fares and a 4 per cent uptick on intercontinental-route economy fares. 

In North America, business class fares on regional routes are expected to increase by 1 per cent, while those on intercontinental routes will increase by 1.5 per cent.

Economy fares on intercontinental routes from the region will increase by just 0.5 per cent.

BCD projects average daily hotel rates in 2026 will increase by 4.9 per cent year over year globally, with aggregate increases in Africa, Asia and Europe all sitting close to that average.

Increases in North America and the Southwest Pacific region will be below that average – up 2.2 per cent and 2.6 per cent, respectively – while the Middle East and Latin America will see increases above that average, up 8.2 per cent and 6.4 per cent, respectively.

Across Europe, BCD projects average room rates will rise by 5.4 per cent. Aggregate ADR increases for both Eastern and Western Europe should be close to 5 per cent, while Northern European markets will likely see increases of 5.8 per cent on average, and in Southern Europe rates are expected to increase by an average of 6.3 per cent. 

Switzerland should see the steepest rise in ADR at 10.5 per cent, according to BCD, followed by Iceland and Sweden, where an 8 per cent increase is likely.

Germany and its neighbours Denmark, the Netherlands and Poland will experience Europe’s lowest ADR inflation in 2026, ranging between 2.5 per cent and 3.5 per cent.

Meanwhile, within the US, ADR is expected to increase by 2 per cent year over year. 

The report did not provide a global average project for car rental rates, noting that "extreme" differences in pricing particularly in countries in the Asia-Pacific region made even a regional aggregate difficult.

Average car rental rates in China, for example, in 2025 are forecast to increase 69 per cent year over year, while average car rental rates in Singapore are forecast to drop 48 per cent.