Corporate travel costs diverge in 2025

Hotels get pricier while flights and cars become cheaper for U.S. business travelers

Corporate Traveler’s 2025 year-in-review shows a clear split in corporate travel costs: hotel rates climbed sharply, while airfares and car rental prices fell. Based on more than 700,000 U.S. bookings, the data suggests companies are traveling more deliberately, favoring shorter trips and practical locations near business hubs. Hotel pricing pressure was driven by higher operating costs and property upgrades rather than capacity expansion. At the same time, booking patterns reveal growing interest in secondary cities alongside traditional business centers.

Key takeaways

• Hotel rates rose sharply: Average daily hotel rates increased 20.5 percent year over year to $229, with the steepest gains in the luxury segment.
• Airfares declined: Average flight costs fell 6 percent to $836, signaling easing pressure in corporate air travel budgets.
• Car rental prices softened: Daily car rental rates dropped 4 percent to $75, continuing a downward trend from previous years.
• Rail travel grew more expensive: Average train fares increased 7 percent year over year to $255.
• Shorter, more efficient trips: Average trip length was 2.5 days, with single-day trips accounting for nearly a quarter of all travel.
• Midscale hotels gained relevance: Companies increased bookings at midscale properties close to business hubs, reflecting value-focused travel policies.
• Secondary markets gained traction: Cities like Green Bay, Fresno, Bozeman, and Rotterdam saw strong year-over-year booking growth, indicating a broader spread of corporate travel demand.

Source: Corporate Traveler

Enjoying this analysis? Hospitality.today delivers daily insights on hotel distribution, AI trends, and travel commerce — straight to your inbox. Subscribe for free at Hospitality.today →