The report, published by travel management platform CWT and the Global Business Travel Association (GBTA), said rising fuel prices, labour shortages and inflationary pressures in raw material costs are the primary drivers of the expected price growth. 

It predicted air fares will increase by 48.5% compared to 2021 by the end of 2022 and further rise by 8.45% in 2023. Meanwhile, ground transportation costs are expected to rise by 7.3% by year end and 6.8% next year, and hotel rates have been tipped to increase by 18.5% before the end of 2022 and by 8.2% in 2023.

"Demand for business travel and meetings is back with a vengeance, of that there is absolutely no doubt,” said Patrick Andersen, CWT’s chief executive.

"Labor shortages across the travel and hospitality industry, rising raw material prices, and greater awareness for responsible travel are all having an impact on services, but predicted pricing is, on the whole, on par with 2019."

However, CWT and the GBTA said air fares fell 26% year on year in 2021 following a 12% drop in 2020, meaning fares this year will still not have returned to the level of 2019 despite the 48.5% hike.

Elsewhere, the companies said hotel rates have "risen sharply" in parts of the world including a 22% rise in North America – and a forecast 31.8% across Europe, the Middle East & Africa – driven by an accelerated recovery coupled with continued capacity constraints.