Rising Event Costs to Challenge 2025 Budgets

According to the 2025 Global Business Travel Forecast, published by business travel and meetings company CWT and the Global Business Travel Association (GBTA), the cost per meeting attendee per day is expected to rise 4.3% to $169 in 2025. This jump reflects the cost of food, beverage, venue, and labor rising, impacting budgets. 

In 2023, the average daily cost per attendee fell to $155. Down from $160 in 2022, a -3.1% decline. This decrease is due to a shift in the types of meetings being held. Many are smaller and more business-focused. Costly incentive components have been eliminated to manage budgets more effectively. 

The focus on cost control, including selecting more affordable venues and destinations, helps offset rising accommodation and food and beverage prices.

Event technology costs are also rising because many events are now hybrid.

When it comes to airfare, global ticket prices are expected to rise 0.6% in 2025, according to an analysis of tens of millions of bookings by CWT for travelers. In addition, hotel room rates are forecast to increase by 2.6% globally in 2025.

2019 No Longer the Baseline

According to the report, using 2019 as a comparison is not recommended. “Lasting changes on the supply side that have created a ‘new normal’,” says Rich Johnson, VP solutions group at CWT. “So using 2019 as the baseline for spend comparison measurement is no longer helpful.” 

Expect many corporations and event professionals to adopt “a zero-based budgeting approach.” This involves breaking down meetings. And going through each expense, category by category, to determine from scratch what is essential. It’s more precise than taking last year’s budget and adding an inflation adjustment.

In addition, price increases vary based on location. Some parts of the world will see more significant cost hikes. For example, ground transportation in Latin America is forecast to increase by 11% this year and 7.9% next year. 

In Asia-Pacific, expect muted price growth this year of 2.3% and a 1.6% rise in 2025.

In Europe, Middle East, and Africa, last year, the average business trip price was $785. Prices are predicted to rise by 1.5% this year. By 1.4% next.