In a few days, we will be stepping into the new year 2025, which holds immense promise for business travel and marks a shift towards a more dynamic and resilient travel ecosystem. The year 2024 presented a complex landscape for business travel. Rising costs for flights, hotels, and car rentals challenged travel budgets.
Geopolitical tensions and fragmented travel technologies also made trip planning more cumbersome. Additionally, evolving traveler expectations were on the rise. From personalized experiences to bleisure travel, they kept companies grappling to meet modern demands. Despite these hurdles, 2024 showed signs of recovery, with more businesses reinvesting in corporate travel.
As we enter 2025, a new wave of business travel trends promises to reshape the industry. Emerging technologies, changing traveler preferences, and shifting economic priorities are creating a blueprint for a more dynamic, innovative travel environment.
According to Business Travel News, companies in America are expecting their travel spending to increase by 20%. Moreover, business travel is set to soar in 2025, with 40% of businesses planning to increase travel from July to June, and 42% of corporates are forecast to spend more than in 2024.
These travel trends 2025 not only address the challenges of the past and open doors to opportunities that redefine the future of business travel. Let’s explore the top 7 transformative trends shaping corporate travel in 2025.
5 Business Travel Trends to Look Out for 2025
Let’s look at some of the business travel trends 2025 that we can look forward to:
1. Increase in Flight, Hotel, and Car Rental Prices
A steep increase in travel costs characterized 2024. There was a significant rise in business travel conferences and meetings across the globe. As per CWT, flight prices in 2024 rose by 1.9% and are expected to surge even further in 2025.
The surge in flight prices was mainly driven by soaring fuel prices, limited seat capacity, and high post-pandemic demand. Hotel rates experienced similar inflation, with an 18% increase in urban areas, and car rental prices climbed as supply chain issues persisted.
What to Expect in 2025?
These cost pressures are not subsiding. The GBTA forecasts average airfare prices to grow by another 0.6% and hotel prices to 1.9% ($165) in 2025. Contributing factors include:
- The ongoing convergence of business and leisure travel (bleisure).
- Higher operational costs for travel providers, including labor shortages and energy expenses.
- Increased demand as corporate budgets for travel expand to support in-person engagements.
As one of the travel trends 2025, car rentals will also become costlier as fleet availability remains constrained. The global car rental market is evaluated at $160.56 billion, reflecting rising demand despite price hikes. With recent advancements in automobile technology, the demand for car rentals is rising amongst business travelers.
To mitigate these rising expenses, organizations must:
- Leverage dynamic pricing tools to book travel during optimal windows.
- Negotiate bulk travel contracts with preferred suppliers.
- Use predictive analytics to forecast travel costs and budget more effectively.
With platforms like itilite, businesses can access innovative booking tools and cost optimization strategies. This helps to secure the best deals while maintaining traveler satisfaction.
2. A Stronger Focus on Domestic and Regional Travel
In 2024, geopolitical tensions significantly impacted business travel. The Russia-Ukraine war, China-Taiwan tensions, and Middle East conflicts triggered numerous travel restrictions. Fluctuating visa rules and growing environmental concerns pushed many companies to prioritize domestic and regional travel. According to GBTA, domestic travel bookings in 2024 increased by 76% as businesses shifted from international to regional travel to reduce costs and complexity.
What to Expect in 2025?
The travel trends 2025 toward domestic and regional travel are expected to grow stronger in 2025, driven by the following:
- Shorter travel times and lower carbon emissions align with sustainability goals.
- Enhanced regional connectivity due to infrastructure investments.
- Growing regional economies create more localized business opportunities.
Focusing on regional hubs and smaller cities will require:
- Building local partnerships with travel suppliers to ensure service quality and availability.
- Investing in technology to streamline regional bookings and manage shorter lead times.
- Developing itineraries that emphasize cost-effective, sustainable travel options.
The itilite travel management tool allows companies to efficiently book and manage regional trips while meeting cost and sustainability targets.
3. Airlines Will Remain Steadfast in Their NDC Push
New Distribution Capability (NDC) continued to be a hot topic in the travel industry in 2024. The initiative, spearheaded by the International Air Transport Association (IATA), aimed to modernize how airlines distribute their products through indirect channels, such as travel management companies (TMCs) and online travel agencies (OTAs). By leveraging NDC, airlines have sought greater control over their inventory, offering more tailored services and fare options directly to buyers.
What to expect in 2025?
Looking ahead, airlines are unlikely to abandon their NDC aspirations. Instead, they will double down on addressing the pain points of adoption and refining the value proposition for corporate travel buyers. American Airlines, along with other major carriers, is expected to reenergize its NDC strategy with a more robust and traveler-friendly approach.
For businesses, this steadfast commitment could mean:
- Special Fares and Offers: NDC adoption could unlock exclusive deals not available through legacy distribution systems. This creates opportunities for cost savings on airfare, especially for frequent or high-volume corporate travel.
- Enhanced Personalization: Expect airlines to refine their use of NDC to deliver hyper-personalized travel options, such as tailored meal plans, baggage allowances, and seat upgrades, catering to both individual travelers and corporate policies.
- Improved Booking Channels: Airlines will work to make NDC channels more accessible and compatible with existing travel management tools, addressing a major corporate concern from 2024
4. Rising Costs for Company Offsites
While virtual and hybrid meetings were still widely used in 2024, there was a noticeable shift back to in-person events. Demand for groups, conferences, and events (M&E) has been extremely robust globally. Post-pandemic, there is still a need to connect with colleagues, customers, and business partners.
Other factors have also come into play, including staffing shortages and wage inflation, which have elevated costs. With the rise of both hybrid working and remote workforces, meetings and events have become even more critical in formulating strategies and building corporate cultures.
What to Expect in 2025?
The demand for in-person meetings and conferences is making a strong comeback, outpacing other forms of corporate travel. As businesses prioritize relationship-building, team collaboration, and strategic planning, the importance of face-to-face interactions has surged. Industry forecasts indicate a remarkable 25% growth in this segment in 2025, signaling an ongoing preference for in-person engagements despite the rise of hybrid and virtual alternatives.
This heightened demand will significantly impact the cost of organizing events and offsites. Companies can expect an increase of approximately 4.3% in event and meeting costs, bringing the average expense to $169 per attendee per day. These costs will primarily stem from rising expenses in venue rentals, catering, and travel logistics as service providers adjust to accommodate higher volumes and growing customer expectations.
5. Stays at Boutique Hotels Will Gain Momentum
In 2024, a notable shift emerged among business travelers, with many opting for offbeat and unconventional stays over luxurious hotels. This preference reflects a growing desire for authentic, localized experiences that offer cultural immersion and unique environments. Boutique accommodations, eco-friendly lodgings, and historic guesthouses became popular choices, aligning with trends toward sustainability and personalization.
What to Expect in 2025?
Today’s business traveler is no longer solely focused on traditional luxury hotel stays but is increasingly seeking localized and immersive experiences.
- A growing desire for authentic travel experiences will reshape the corporate travel landscape in 2025
- 15%-16% of business travelers will seek offbeat accommodations like Airbnb properties, eco-friendly hotels, or cultural lodgings
- New-age travelers will look forward to staying in more peaceful stays away from the hustle and bustle of the city
Whether it’s workations or localized accommodations, businesses will need innovative travel solutions to keep up with the evolving needs of the modern workforce. itilite stands ready to support businesses in managing this transformation.
Business Travel Trends are Here to Stay
Reflecting on these travel trends 2025 reveals that the future of travel revolves around fostering smarter, safer, and more enriching experiences. While technology will be a driving force, the essence of travel will continue to rely on human connection. At its core, travel is about building bridges—whether through exploring new destinations, embracing fresh perspectives, or engaging in transformative experiences.
If your company aims to streamline business travel management, adopting corporate travel management software like itilite is a smart move. itilite enhances employee travel experiences while enabling effective cost control. From managing bookings to offering free cancellations, personalized options, and round-the-clock customer support, itilite ensures every aspect of corporate travel is handled seamlessly and efficiently.
Get a free demo of itilite to try the features yourself.
