by Lacey Pfalz
Last updated: 10:40 AM ET, Wed June 10, 2026
While business travel costs rose during the first half of 2026 due to higher fuel prices driven by the war in the Middle East, SAP Concur data found that business travel remained largely unimpeded despite these higher costs.
The data analyzed travel through May 31, 2026, and found that costs increased across every major category, with the average gas price logged in SAP Concur rising about 22% from last year. Airfare rose 8%, hotel rates grew nearly 6%, and car rentals increased 5%.
Some regions are seeing worse increases in gas prices than others: while the average price for gas in the United States was $51 in January, it rose to $63 in April; for Australia & New Zealand, that figure went from $80 to $109.
The increase in costs is prompting some business travelers to be more economical about their travel plans: we see a 4% decrease in car rentals for business travelers, while rail bookings increased by 4%.
Premium Travel Demand Remains Unimpeded
As with other research, SAP Concur’s data on premium travel shows that those who can spend on premium travel didn’t stop, even due to higher prices. Premium cabin bookings, including business and first class airfare, rose 9% year over year, while economy bookings remained flat and premium economy bookings dropped 15%.
The Second Half of 2026: Predictions
SAP Concur found that while rising costs and disruptions haven’t changed business travel plans too much yet, that could change as we head into the second half of the year. Significantly higher airfares and reduced airline capacity could hurt plans, either in the short term or the long term.
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