Business Travel Outlook 2025

The global outlook for business travel in 2025 points to significant growth as companies across all industries prioritise face-to-face interactions to drive production, forge relationships and seize opportunities. This article delves into the expected rise in travel volumes and spending, regional trends shaping the market, potential pressures in the travel industry, and shifts in pricing across transportation and accommodation.

Business Travel Growth Projections

Corporate travel is expected to rise sharply in 2025, with nearly 40% of organisations planning to increase travel over the year. Spending on business travel is also set to grow, with over 40% of companies projecting higher budgets compared to 2024. These increases reflect a strong recovery and the continued belief in the value of in-person engagement.

Survey data highlights these trends further:

• 30% of respondents plan to travel 20% more than in the previous year.
• 36% foresee an increase of more than 20% in their travel spend.
• Only a small percentage anticipate a reduction in travel volume or budget.

Global travel spend is expected to grow by 10.4% in 2025 (down 0.7% from 2024). Regionally, the Europe, Middle East, and Africa (EMEA) market leads with the strongest surge in travel growth, signalling robust opportunities for both corporations and local economies.

Cost and Experience at the Forefront

As businesses plan for increased travel, cost management remains a central concern. Inflationary pressures continue to impact pricing, though the rate of growth is stabilising. Average airfares and hotel room rates are expected to see modest increases (0.6% and 1.9% respectively), while car rental prices are forecast to grow slightly (2.4%), reflecting a steady recovery in supply chains.

Simultaneously, the traveller experience is receiving heightened focus. Companies are leveraging new technologies and optimising travel management programmes to enhance service quality and reduce environmental impacts. This balance between cost, service, and sustainability will shape corporate travel strategies moving forward.

Other Pressures on the Travel Industry

Regional conflicts and sustainability concerns may put pressure on travel volumes and corporate travel budgets (increasing by approximately 6% in 2025). Geopolitical tensions in Ukraine and the Middle East continue to impact airspaces and free movement whilst travel in and out of the US could become more complex when the new administration takes power.

In Europe, the Corporate Sustainability Reporting Directive (CRSD), which already impacted business travel in 2024, is set to continue pushing climate conscious travel choices and more sustainable travel policies in 2025.

Key Developments in the Airline Industry

The airline industry is undergoing significant transformations as carriers adapt to a changing landscape while navigating persistent challenges. To stay competitive, airlines are investing heavily in upgrading passenger amenities, enhancing airport hubs, and improving the overall travel experience. However, high fuel costs, labour shortages, and geopolitical tensions continue to pose substantial hurdles.

Additionally, the industry is grappling with increased aircraft leasing costs and delays in new aircraft deliveries, which constrain market growth and influence pricing strategies. Despite these pressures, airlines remain committed to reinvesting in their operations, ensuring they meet the demands of a growing market while addressing operational challenges.

Ground Transportation Trends in 2025

Ground transportation is evolving rapidly in 2025, shaped by the interplay of cost pressures, market shifts, and sustainability goals. Stabilised vehicle fleets have brought some relief to car rental companies but rising fuel and labour costs continue to drive prices higher. Rental companies are striving to balance these pressures while keeping rates competitive to attract business travellers.

Electric vehicles (EVs) are becoming a prominent feature in rental fleets, aligning with sustainability targets. However, adoption in the corporate market remains slower than expected due to higher rental costs, complex maintenance needs, and longer charging times. Limited expertise in EV repairs and challenges in sourcing parts further add to expenses, resulting in higher premiums for users.

Despite these obstacles, ongoing improvements in infrastructure and service capabilities are expected to boost EV appeal. As companies prioritise sustainability, EV rentals are likely to see gradual growth.

With stabilised pricing and a focus on greener options, ground transportation is set to play an essential role in shaping business travel decisions and supporting sustainability goals in the year ahead.

As businesses prepare for 2025, the emphasis on travel reflects its enduring importance in fostering growth and innovation. Companies that adapt to changing trends - balancing cost, experience, and environmental responsibility - will be well-positioned to thrive in the evolving travel landscape.