Business travel in 2025: The 5 trends to watch

When it comes to business travel, change is guaranteed. Although this has never been more evident than in the last five years, the challenges of the early 2020s are now firmly in the rear-view mirror. 

At the midway point of the decade, organisations are facing a whole new range of challenges including a precarious economic and geopolitical landscape, the impact of AI and the increasingly urgent need for sustainability initiatives in the face of climate-related crises.

And within the travel industry, we're seeing some innovative and dynamic forces at play, perhaps most notably the acceptance of New Distribution Capability (NDC).

For finance and travel managers, navigating a path through all of this isn't always an easy task and one that must be approached collaboratively. At our recent 2025 business travel trends webinar, experts Oren Geshuri from Deloitte and Imogen Furness from Barclays, along with Chris Juneau, SVP, head of SAP Concur Product Marketing, shared their insights on what you can expect.

In this blog we highlight the five key points discussed and share insights into how you can successfully adapt to these trends and move forward with confidence in 2025.

1. Geopolitical and economic instability drives purposeful travel

For the past few years, many organisations have become comfortable with lower travel and expense (T&E) budgets. But as inflation slows, there's some optimism that these budgets will stretch further, even if they remain flat. The focus for business travel is now on maximising value, with travel that delivers a clear ROI and supports business goals. You might have heard this referred to as "purposeful travel."

Geopolitical instability, such as rising populism, political transitions and protectionist policies, continues to impact travel, with rising concerns about trade tariffs, steeper immigration regulations and cross-border logistics. These disruptions add complexity and cost pressures to travel suppliers and headaches for finance and travel managers trying to balance budgets.

But, employees still want to travel for business meetings – more than two thirds (67%) of business travellers feel that business travel is critical for career advancement. These travellers are demanding more from booking platforms, such as blended travel options, real-time updates, safety features and self-service options during disruptions like weather or geopolitical events.

With younger generations leading corporate travel, offering these benefits will be key to maintaining employee satisfaction and retention both now and in the future.

The way forward: Ensure your systems adapt to demands for more purposeful, cost-effective travel.

2. AI and technology enhances efficiency and compliance

It's safe to say AI has hit the mainstream – you can't move for stories about the potential of GenAI in everything from customer service to compliance. It has become a game-changer in the world of business travel, with 95% of business travellers saying they would consider using AI-powered automation to support their tasks. 

GenAI is starting to streamline hotel itemisation and expense reporting, automating the creation and auditing of reports in real-time. This helps ensure compliance with policies and even flags potential errors or fraud. Personalising travel bookings and offering tailored itineraries will be among AI's key benefits. AI-powered tools that solve specific challenges, for example digital assistants like Joule make it easier than ever to book travel in line with company policies.

AI's impact goes beyond just automation. While business travellers might remain cautious, using AI tentatively for recommendations and anomaly detection, finance leaders are going all-in, relying on AI for tasks like forecasting and risk management. 

The way forward: Be prepared to embrace AI at every stage of the business travel process – it's been working hard behind the scenes in SAP Concur solutions for over a decade which you can learn more about in our AI eBook.

3. Strengthen links between sustainability and business goals

Sustainability has been on business leader' agendas for a few years, but the urgency of climate action has been underscored by 2024 being the warmest year on record, with the US alone experiencing 27 weather disasters exceeding $1 billion in damage. 

What's more, climate change is becoming increasingly politicised, further complicating the issue for businesses who must align their sustainability measures with both employee expectations and evolving regulations.

Businesses are increasingly being forced to question whether the ROI justifies the costs – both financial and environmental. Business travellers are also becoming more conscious of the environmental impact of their trips, with many seeking transportation and hotel options sorted by greenhouse gas emission levels. 

Finance leaders will play a pivotal role in guiding technology investments that prioritise compliance with ESG (Environmental, Social, Governance) standards. This includes integrating solutions that track carbon emissions and reward sustainable choices. 

In fact, businesses may end up spending just as much on non-financial reporting – focused on sustainability – as they do on financial reporting, given the growing regulatory landscape.

The way forward: Adopt solutions that integrate sustainability metrics into T&E reporting and help travellers automatically make the most sustainable, policy-friendly choices.

4. Give travellers flexible and compliant content choices  

Travel managers are struggling to ensure that the right content is available in user-friendly interfaces that meet their company's policies – especially with sustainability and cost considerations top of mind.

NDC allows airlines to offer more personalised and tailored content, like special offers, bundles and additional services, directly through travel agencies, booking platforms and corporate travel solutions.

With 36% of travel managers saying that “airlines not sharing full content from traditional channels” will make their jobs more challenging in the next year, and as travel volumes increase, the need for flexible, multi-channel solutions becomes even more important. 

We can expect to see Travel Management Companies (TMCs) consolidate, which will give larger agencies more bargaining power with suppliers and enable them to streamline offerings. 

This consolidation will drive efficiencies, particularly in managing diverse travel content like low-cost carriers, rail options and nontraditional supplier. It will make content distribution less fragmented.

The way forward: Look for solutions that can work with various TMCs, ensuring that the right content is available at the right point based on your business travel policies.

5. Build collaboration across business travel

Budget constraints and external pressures mean that CFOs are under increasing pressure to ensure their investments deliver on their promises, with a strong emphasis on cost control and efficiency. Technology – in particular solutions that are easily integrated across different departments – plays a key role in this.

According to a 2024 CFO survey, 63% of CFOs are investing in cutting-edge technologies, though 58% admit they have limited understanding of AI. This signifies a need for education and change management, so it's important to ensure that departments like HR, procurement and IT are fully aligned and collaborating for the full benefits of AI to be felt. The survey shows that 58% of CFOs want to collaborate with IT leaders on cost control and 56% on AI initiatives.

The generational divide also plays a role, with different age groups – from Baby Boomers to Gen Alphas – having varying levels of comfort and familiarity with AI, making education and accessibility a deal breaker.

In 2025, we expect finance leaders to take on expanded roles, collaborating with IT, HR and other C-suite executives to drive innovation, improve sustainability and manage data security. They will help guide tech investments, focusing on AI, cybersecurity and compliance efforts. 

The way forward: Bring together T&E into one platform, for a single source of data truth and real-time visibility across your organisation.

2025 – a year of breakthroughs

No prediction is guaranteed, of course, but we are certain change will come in many forms. Whether it's AI innovations and system integrations, new forms of travel content that translates to new opportunities and ways to save, or in collaboration across functions that bring better ideas to the table, 2025 is set to be an exciting year.

To discover from the experts what's up ahead, watch the recent '2025 Travel and Expense Trends and Prediction's on-demand webinar or to dig a bit deeper into the trends that will shape 2025 and beyond, download our Travel & Expense 2025: 4 trends and predictions from industry experts' eBook.