While fourth-quarter economy class intercontinental fares are showing signs of softness, increasing corporate travel demand appears to be bolstering such business class fares, according to a new report from consultancy Advito.

Advito projects average fourth-quarter economy class intercontinental fares in every global region except Asia to decline year over year, including a 5 per cent decline in Europe and a 3 per cent decline in North America, which Advito in its quarterly Travel Price Index attributes to "geopolitical uncertainty and economic slowdown."?

However, Advito projects average business class intercontinental fares to increase year over year in every global region except Latin America and North America (where in each region they are projected to decline 1 per cent).?In Europe, these fares are expected to increase 3 per cent year on year.

"The gradual recovery of corporate travel combined with the attraction for premium cabin options helps maintain fares at a high level in the business cabin," according to Advito, which is the consulting arm of travel management company BCD Travel.

Domestic fares in both premium and economy class are set to increase "modestly" on the whole, though with regional variation as "a strict capacity discipline driven by aircraft shortages and network rationalisation contributes to rising fares." Several carriers have implemented capacity cuts in the second half of 2025 after demand softened in the spring.

Advito said it uses predictive analytics to produce airfare calculations based on fare availability for the fourth quarter in global distribution systems, weighted toward October travel prices.?

Advito projected the overall fourth-quarter average global hotel rate to increase 1 per cent year over year, including a 6 per cent increase in Europe and little change in North America.?

"The increase in business travel demand is driving more moderate/strong cost increases in many markets," according to Advito.

The consultancy cited London, Edinburgh, Paris, Nice, Rome, Milan, Amsterdam, Rotterdam, Stockholm, Salzburg, Warsaw, Istanbul, Dublin and most cities in Switzerland and Germany as markets showing "strong" hotel rate increases.

Advito said its hotel projections were based on predictive analytics around flexible best available rates available in GDSs and online travel agencies.

Fourth-quarter car rental rates across Europe are expected to increase 2 per cent year over year, with Advito citing higher demand for economy, compact or electric vehicles as corporates look to reduce their carbon footprint.

Rail ticket prices in the region are also expected to increase 4 per cent year over year, with a ¡°sharp¡± increase in fares on popular cross-border routes such as London-Paris and Brussels-London, according to Advito.