It’s that time of year when travel managers usually ask their TMCs to predict the trends that will drive business travel, and traveller behaviour, in the year ahead.
This time around corporates are still working out what impact rising employment costs, greater fragmentation of global markets, and geopolitical uncertainty will have on the businesses.
From travel volumes to EV charging, airport drop-off charges, to new (and not so new) ways to drive savings, all options are – or at least should be – on the table.
Join us on board the Clarity helicopter for a concise, high-level view of how travel management has changed since 2018, and what lies ahead. You’ll see a conflicting picture changing priorities and engrained habits.
The more things change…
Despite organisations being more cost-conscious, business spend levels are returning to pre-2019 levels. UK corporate travel spending is predicted to hit a record £66.1 billion in 2024[1].
In general, business travel behaviors have undergone significant changes since the pre-pandemic, shaped by evolving priorities around health, technology, sustainability, and work-life balance. But don’t be deceived.
…The more they stay the same
There’s plenty that hasn’t changed at all. Take face-to-face meetings. Despite the proven cost benefits, 87%of CEOs say technology will never replace the value of strategically important face-to-face meetings
And it doesn’t stop there. Many corporates persist in scheduling offsite meetings midweek instead of the start or end of the working week, Tuesdays to Thursdays remain the traditional days for offsite meetings, driving up prices for flights, accommodation, despite potential savings of 15 - 25%.
Dynamic pricing strategies remain under-utilised too. For rail travel in particular, encouraging (or even mandating) advance booking can save 10% to 40%.
Our predictions for 2025
Against this background, here are our predictions for 2025, including some of their unintended consequences.
- Sustainability as a priority: It’s inconceivable that companies won’t continue to embrace electric vehicles, eco-friendly accommodations, bio aviation fuels, green certifications, and responsible journey planning, despite the additional costs and traveller expectations for transparency in carbon reductions.
- Work-life integration is another ‘must-have’ for most corporates, whether it’s remote working or recognising the time lost to poor travel planning. However, employers willing to permit the latter have already done so. Others have experienced legal and logistical complexities and are unlikely to adopt.
- Service will be the linchpin of travel management: As AI shot to fame as the 2024 buzzword - and while that is likely to continue to evolve - like yin to yang, all things must balance, and we predict the leveler will be a greater craving for high quality service and travel management. Travel managers will weigh up the benefits of AI-powered expense management systems and smart booking platforms. Concerns over data privacy and job displacement still make it a blend of humans and technology the only way forward.
- Health and wellness integration is a legacy of the pandemic. Some travellers value fitness facilities and wellness retreats - this, of course needs to be balanced with rate caps and hotel programmes.
- TMCs should continue to persuade their clients to adopt cost-saving travel habits, despite the potential financial benefits. Some corporates value convenience and familiarity over cost-cutting measures. Others prioritise employee satisfaction, fearing strict travel policies may harm productivity efforts.
At Clarity, our strategy for meeting these challenges is three-pronged.
- Enhancing data transparency, providing detailed insights into potential savings and the ROI of cost-saving measures can strengthen the case for change.
- Employee engagement that educates employees on the benefits of cost-efficient travel habits, including incentives for compliance, improves adoption.
- Tailored solutions aligned with a company’s culture and priorities , such as sustainability and traveller well-being) are more likely to succeed.
Ultimately, corporate travel behaviour is influenced by a complex mix of priorities, with cost savings often taking a backseat to operational and strategic concerns. Is your TMC doing all it could to help support its people and meet organisational objecives?
