Fresh off a year characterized by progress and innovation, business travel finds itself in a period of transformation. Technology advancements are rapidly expanding across all segments of the industry. With corporate travel poised for growth in 2025, cost management is predicted to be more of a challenge for the industry compared to recent years.
To help travel programs prepare for this year and beyond, Direct Travel has compiled a 2025 Forecast with trends, predictions, and actionable steps that travel managers can download and share with their team:
Travel Costs Bring Optimistic Uncertainty
The new year is ushering in an era of cautious concern about pricing and increased travel costs. In fact, over three quarters of travel buyers cited cost control as one of the most important strategic priorities for their program in 2025.
Our whitepaper analyzes the external factors influencing these cost concerns, like geopolitical tensions abroad and economic uncertainty at home. It also explores business travel demand, which has continued to rise alongside costs. As airfare and hotel rates increase, the opportunity to negotiate discounted rates remains high for managed travel programs.
Refer to our 2025 forecast for more insight into how travel managers can lean on their TMC for help negotiating the most favorable rates in every segment.
Tech Innovation On the Rise
Despite cost concerns, half of travel programs plan to increase their tech investments in 2025. This comes at a time when travelers are overwhelmed by the vast volume of information that is available to them, so solutions that simplify the travel shopping experience are crucial. Review the whitepaper to learn how travel platforms like Avenir save valuable time for travelers and help managers provide a more personalized service experience for their team.
Companies are also looking to incorporate Artificial Intelligence as part of their increase in technology. As our forecast explains, the solutions that will receive the most adoption will be the ones in which AI makes the process of travel just as delightful as the reasons why we travel. With AI acting as a technology assistant, both travel buyers and suppliers can more effectively serve their customers.
A Turning Point for Sustainability
As companies face increasing pressure to align their travel programs with broader ESG goals, sustainability is no longer a “nice-to-have” but a strategic imperative. In our whitepaper, we take a look at some of the most recent updates impacting the industry:
- Changing Views of Offsetting: The forecast explains why offsetting is increasingly viewed as a less meaningful solution for addressing business travel emissions, and what carbon removal solutions are promising alternatives.
- Emergence of SAF: Sustainable Aviation Fuel is a key lever for reducing emissions associated with business travel. Learn how SAF certificates enable companies to support sustainable aviation fuel production, and what challenges remain before it sparks wider industry adoption.
- Awareness Surrounding Greenwashing: Travelers are becoming more eco-logical which means they want to choose sustainable travel options, but only if they can be backed by evidence of their environmental benefit.
For a sustainability program to flourish in 2025, it is important for travel managers to have actionable insights and data-backed reasoning behind their efforts. Partnering with a trusted TMC can provide transparency and peace of mind.
Pragmatic Approach to NDC Adoption
Currently, New Distribution Capability adoption remains uneven throughout the industry. 29% of travel management companies, online booking tools, and global distribution systems offer NDC content seamlessly, but just over half are still facing challenges in implementation.
Rising costs are another factor at play, because airlines approach pricing differently with NDC content, such as implementing dynamic pricing and customized bundles. While this can provide travelers with additional choices, it can also complicate calculations for travel managers and escalate costs.
Our whitepaper dives into why those who manage travel should incorporate tech solutions to access not only NDC content, but content from a wide array of sources. In the forecast, you’ll learn why this is critical to the success of travel programs in 2025, and what to look for when choosing a tech platform.
Multi-Faceted Business Travel
It’s no longer possible to make broad generalizations about business travel, and travel managers must ensure their travel program caters to their team’s distinct needs. A few themes within this trend that we elaborate on in the whitepaper are:
- Bleisure Travel: This former buzzword is here to stay, especially as travelers factor in the cost of accommodation and local activities.
- The Gate Escape: Some travelers will consider a travel destination based on its airport, and look forward to unique airport experiences as part of their business trip.
- Frictionless Travel: Corporate travelers are eager for a smoother travel experience and welcome assistance with booking accommodations, comparing prices, and understanding fees.
Next Steps for Travel Programs
Today’s business travelers are more savvy and technologically advanced than ever before. They expect and deserve a choice in all aspects of their travel journey.
To effectively plan for 2025 and beyond, travel managers should lean on a trusted partner for guidance. At Direct Travel, our team of experts have researched these industry predictions and are prepared to help your travel program thrive.
