Just when you thought your travel budget was sorted for 2025, new corporate travel trends data from our Consulting Q3 2024 Business Travel Report might have you reaching for your calculator. Here’s why. Business class fares are jumping, and flights are packed. Travel managers are facing tough conversations about rising costs.
Our data tells two stories. Yes, travel is getting more expensive, but it’s also becoming more predictable. And, travel managers who book ahead are saving on airfares and getting better hotel rates. The opportunity to be strategic with your travel spend has never been greater.
The sky’s getting crowded
Remember those ghost-town airports of 2020? Those days are long gone. Flights are packed to the rafters with an 86.2% load factor recorded.
Global passenger demand was up 8.6% in August 2024 compared to 2023. Yes, your business class tickets are costing between 6 and 8% more compared to 2023, but there’s some good news. Economy fares have dropped by 1 to 4% versus 2023.
What this means for you in 2025
If you’ve been putting off booking important client meetings in London, New York, or Dubai, now’s the time to get them in the diary. Those ‘last-minute Larry’ days are behind us. The early bird really does get the window seat (and the better fare) these days.
The hotel squeeze
If you’re wondering why your hotel bills in Johannesburg are looking steeper, you’re not alone. Room rates are up 14%.
If you think that’s eye-watering, spare a thought for your colleagues heading to New York. They’re looking at $490 a night (up 15%). The average room rate is up in North America (6.8%), South America (25.4%), and Europe (5.3%). There’s a gentle softening of prices in the Middle East/Africa, Asia, and Australia.
What this means for you in 2025
Time to get savvy with accommodation choices. Your usual hotel in Manhattan might need a rethink. But remember – location is not everything. Some of the best business hotels are just a short ride from the city centre. They’re often better equipped for productive work.
Money matters
Here’s where it gets interesting for your international business plans. While global inflation is cooling off, some spots like Brazil and India are still seeing prices climb. The good news? Your rand is working harder in some markets than others.
What this means for you in 2025
Think strategically about where and when you’re sending your teams. If you’re planning business expansions, factor in regional cost differences. Sometimes it’s worth bundling several meetings in one trip. Your budget will thank you.
The good news about 2025
Airlines are promising more seats for 2025 (1.8% more in the first half of the year, and 2.1% more in Africa). But don’t break out the champagne just yet. More seats don’t automatically mean cheaper fares, especially with everyone eager to tie down those face-to-face meetings.
What this means for you in 2025
Keep an eye on new route announcements. They often come with decent corporate deals. If you’re managing a travel programme, now’s the time to really get to know your airline reps or work with your Travel Management Company (TMC). Moreover, those efforts and relationships can be worth their weight in air miles.
The companies winning at the travel game aren’t necessarily the ones with the biggest budgets. They’re the ones being clever about how they spend it. The role of a TMC is highlighted in cost and value optimisation. Companies are advised to leverage their TMC’s expertise in several key areas.
The power of consolidated buying
Your TMC’s AI tools can analyse your travel patterns and suggest cost-saving opportunities you might miss. For example, booking premium economy instead of business class on shorter routes where the price difference outweighs the benefits.
The power of consolidated buying is also emphasised. A good TMC brings negotiating power you simply can’t match on your own. We’re booking thousands of room nights and flights, which means better rates and more flexible terms for our clients.
Success in 2025 is not just about managing costs – it is about making business travel work harder for your company. Whether through better planning, smarter technology, or having the right support team in your corner, you will achieve maximum value from every trip.
Bonnie Smith | General Manager | FCM Travel Solutions | mail me |
