From Costs To Compliance The Top Corporate Travel Challenges In 2025

From Costs To Compliance The Top Corporate Travel Challenges In 2025

Rising costs dominate corporate travel in 2025, with airline pricing, leakage, and data issues emerging as key challenges, while sustainability takes a backseat.

As the corporate travel industry gears up for 2025, new data from Business Travel Show Europe reveals that rising costs are the foremost challenge facing travel managers globally. From escalating prices and budget pressures to leakage and data/reporting inefficiencies, the financial burden is reshaping priorities across the industry. Meanwhile, sustainability—once a top concern—has dropped off the radar for many.

Cost Takes Center Stage

The survey of 163 corporate travel professionals conducted in late 2024 highlights a shift in focus. The “pressure of increasing costs” has surged to the top spot, cited by 28% of respondents, overtaking “airline pricing,” which dominated concerns in the past 18 months but now ranks third. Additionally, “distribution” challenges related to systems like NDC (New Distribution Capability) and One Order have climbed to the second spot, reflecting their growing impact on operational complexity.

New Challenges Emerge

Two new issues—leakage and data/reporting—make their debut among the top concerns for 2025. Leakage, referring to employees booking outside approved channels, complicates cost control and compliance. Data and reporting inefficiencies hinder visibility into travel spending, making it harder to manage budgets effectively.

Sustainability Slips

Sustainability, which once held a prominent place on corporate agendas, has notably fallen out of the top 10 challenges. Industry experts attribute this shift to ongoing geopolitical and economic instability. Louis Magliaro, BTN Group Executive Vice President, noted, “With spiraling costs and geopolitical uncertainty, it’s no surprise sustainability is taking a backseat. However, the commitment to sustainable travel remains strong despite these immediate pressures.”

Regional Variations in Challenges

The survey also identified regional differences in priorities. In the UK, the pressure of increasing costs topped the list for 30% of respondents, while airline pricing led concerns in Europe. In the rest of the world, rising costs were again the dominant challenge, affecting 35% of respondents. Across all regions, cost-related issues overshadowed other concerns like compliance and accommodation pricing.

The Road Ahead

The Business Travel Show Europe will address these pressing challenges when it returns to ExCeL London from June 25-26, 2025. The event promises to bring together over 700 buyers and 200 exhibitors, offering a platform for high-level networking and insights into industry innovations. Registration opens in March 2025.

With rising costs reshaping priorities, corporate travel managers face a challenging year ahead. The emphasis on financial efficiency will likely persist as the industry grapples with economic pressures, leaving less room for initiatives like sustainability in the near term.

The post From Costs To Compliance The Top Corporate Travel Challenges In 2025 appeared first on Travel And Tour World.January 07, 2025 at 10:25PM