In the year ahead, business travel promises to bring renewed energy and a more personal take on the traveler’s mission
With the Great Reset of 2024 receding in the rearview mirror, there’s no better time to pause and reflect on the lessons we have learned. The unspoken effects of geopolitical conflict, natural disasters, a tense election year in the US and in Europe, rising inflationary pressures and sustainability demands have undoubtably seeped into the psyche of the traveler.
But the business travel industry is resilient, and continues to grow. According to the GBTA, global business travel spending is expected to reach $1.48 trillion in 2025, up from $1.43 trillion in 2019. Deloitte reports that 58 percent of travel managers expect their companies’ travel expenditure to increase in 2025.
Among other factors, back to the office trends are feeding the return to travel. Whether it’s an industry-wide conference or a small meeting, people are getting behind the wheel or boarding trains and planes with a renewed sense of vigor. Return to Office (RTO) policies are coming with a twist, as corporations seem to be more interested in collaboration and productivity than in clocking in the nine-to-five. Younger employees are coming into the workforce, and older employees are welcoming the benefits of flexible schedules. That means the Return of the Traveler in 2025 is going to be more holistic than ever.
“Even with the RTO mandates for some companies, the rise of hybrid work schedules is expected to drive a new wave of business travel,” notes John Keichline, CEO of Reed & Mackay North America. “We recognize that while businesses are keen to foster in-person collaboration, there’s a need to balance productivity with flexibility. This shift is leading to a new era of business travel – one that is more fluid, mobile and responsive to the needs of a diverse workforce.”
Meaningful Connections
Evolving traveler preferences may help to explain some of what’s behind the resurgence in business travel. Having endured the agony of isolation during the pandemic, many are realizing the unseen power of building trust over water-cooler conversations, or fostering creativity in group pow-wows.
According to Carrie Hartman, president at global corporate travel and relocation platform 3Sixty, “Business travel is back with a bang, but that doesn’t mean it’s business as usual. The explosion in hybrid working models means business travel is now driven by an intensified desire to form deeper connections between teams and clients, with events like conferences, trade shows and exhibitions all fueling growth.”
Rich Liu, CEO of Navan Travel, explains, “Remote and hybrid work models often breed more frequent and longer-term travel, with team offsites and office visits, leading to significant shifts in how, when, and where employees travel.” Post-pandemic, Navan data shows that the reasons for business travel have shifted since the pandemic-triggered rise of remote and hybrid work models:
• Office visits: from 28 percent to 33 percent (up 5 percentage points)
• Conferences: from 12 percent to 15 percent (up 3 percentage points)
• Customer visits: have returned to their pre-pandemic share from 26 percent to 27 percent (up 1 percentage point)
“With remote models here to stay, we can expect a continued shift toward more targeted business travel. Modern leaders understand that business travel is no longer the cost of doing business — with the right tools, it’s a strategic lever for growth,” Liu says.
Today, the rise of purposeful business travel highlights travelers’ desires to make something meaningful out of the trip. Whether it’s strengthening the rapport between international sales teams, traveling by rail instead of by air to reduce carbon emissions, or simply feeling a sense of revival by working (and playing) in a new locale, business travel remains robust because of the human connections we make.
The Balancing Act
We know that business travel is a business enabler. However, balancing business needs with both traveler wellbeing and the wellbeing of the planet is part of the challenge and opportunity facing corporate travel decision makers in 2025.
“Health and wellbeing are key focus areas, with providers offering healthier food choices, fitness facilities, and wellness programs. At the same time, there is a growing acknowledgement toward the importance of creating inclusive experiences,” notes Stephanie DeNote, VP product management at CWT.
However, this emphasis on traveler wellbeing may, at times, clash with a company’s wider ESG (Environmental, Social, and Governance) policy. “Already, the return to business travel comes apparently at loggerheads with companies’ sustainability initiatives. With air travel in particular accounting for huge proportions of employers’ carbon footprints, companies know that a surefire way to reduce operational emissions is to cut down on flying,” adds 3Sixty’s Hartman.
This has contributed to the uptick in the number of firms adopting blended business/leisure travel models. “Alongside the recent softening of consumer travel, Navan has recorded a four-times year over year increase in bleisure travel bookings,” says Navan’s Liu. “We anticipate that this upward trend will continue into 2025, with the new ‘Bleisure Season’ peaking in the fall.”
Blended travel may also be more frequently utilized as an employee value proposition. According to John Van den Heuvel, president of Corporate Traveler USA. “By having the opportunity to explore different regions and countries, it exposes travelers to different cultures, customs and ways of doing business. This cultural understanding can in turn lead to better cross-cultural communication and a global perspective that informs business strategies. Furthermore, companies may also start to use the bleisure trend as a recruitment tool, as more and more employees are looking to feel supported and valued in their job, especially the younger generation that often values experiences over traditional perks.”
2025 State of the Industry
Gone are the days when companies were churning out routine trips for employees. Today, the emphasis has shifted to creating strategic trips with high business impact. Getting the most out of business travel is now a prime directive of travel managers, who realize that travelers want more than just single trips with single purposes.
There is no question that business travel is back – Navan data shows that travel booking volumes through August 2024 averaged 118 percent of the monthly booking volume for a cohort of current Navan customers that have used the platform since 2019. However, while booking volumes have surpassed 2019 levels, booking patterns and travel profiles look different than pre-pandemic. “At a high level, we’re seeing more travelers per company, shifts in trip purpose, and business travel extending to all departments, not just sales,” Liu says.
Additionally, the latest HotelHub Index, which aggregates data on some on the biggest TMCs booking hotels on behalf of their corporate clients, indicates that for Q2 2024, transaction volumes increased by 7 percent compared to last year, “reflecting a more intentional approach to travel management.”
Today, employees are traveling less frequently, but seem to be staying longer, combining elements of both work and play. Hotel brands are aware of this, and have consolidated and diversified in order to meet the needs of new demographic shifts. “Many travelers are not necessarily signing up for the traditional experience,” explains Shauna Whitehead, VP customer solutions at BCD Meetings and Events. “Some are demanding more of an at home environment, with spaces for both work and relaxation. Many are traveling pre-weekday or over the weekend, or coming back later, in order to experience some time in a destination outside of just work time.”
New Kids on the Block
A significant driver behind the adaptation of bleisure policies, the concept of open workspaces, blended travel policies, and sustainability practices is the preferences of younger employees. “Our 2024 Global Customer Survey demonstrated that under-40s are three times more likely to ‘usually’ or ‘always’ book a bleisure extension to their business trip compared to their over-40 counterparts, demonstrating a greater desire to integrate their personal and professional lives,” says Anita Salvatore, CEO North America at Corporate Travel Management.
“With Millennials and Gen Z representing roughly 75 percent of the current and near future workforce, new preferences are definitely emerging in both the business travel and groups segments,” adds Wendy Ferrill, VP worldwide sales at BWH Hotels. “These younger generations are on the road as they become established in their careers, so we see it as important to cater to their tastes and desired experiences. We’re seeing a focus on social media-worthiness, flexibility and customization, technological integration and the ability to provide opportunities to collaborate with peers,” Ferrill adds.
“As more Gen Z and Millennial professionals enter and dominate the workforce, we believe there will be a surge in demand for sustainable travel solutions,” confirms Reed & Mackay’s Keichline. “Airlines, hotels and other suppliers will need to respond with greater transparency on their environmental impact, offering choices that align with a more conscientious traveler mindset.”
Millennials are also driving demand for seamless technology that can be summoned at their fingertips. Whether that’s using mobile apps and AI in self-booking platforms, or utilizing personalized recommendations, secure and unfettered access to booking options will be key.
“The marriage of AI and NDC will completely change the way we think of booking travel in 2025,” says Navan’s Liu. “With the data available through NDC, we have a much stronger sense of our travelers’ preferences: closest airport, preferred airline, fare class, aisle or window, and more — and all within the policy their company has set for them. The analyzed data enables us to present travelers with the most relevant flights first, with all their preference boxes ticked, so they can book their flight quickly and get back to work.”
The Curious Traveler
The business traveler in 2025 possesses an intriguing blend of characteristics: Empowered. Bleisure’d. Sustainable. Hybrid. Interactive.
For sure, virtual platforms were the crucial “fill in the gap” measures that kept businesses alive during the pandemic, and in some industries, are still the life-saver today. For a lot of folks though, the transition to back to the office is being met with resistance. Working from home has helped many with family duties, the long commute, and in general, a better work-life balance. For this reason, hybrid schedules will continue to be offered by many employers.
As employees go back into the office, they fulfill the demand for being around other people. Recognizing the value of in-person engagement remains paramount, but not just within the confines of a workplace. The emphasis on an office environment that encourages more collaborative interaction extends to the meetings and events sphere as well.
“Even if budgets tighten, people still want memorable and impactful experiences,” says CTM’s Salvatore. “For our customers, we know that ease of travel, price and event technology are the top three considerations for event planning, but we also know that including free time into the event agenda, selecting unique meeting/event spaces and interesting/unique event destinations are also important to them.”
Business travelers are seeking authentic experiences, whether they’re coming into the office only two days a week, or flying out of the country on a two-week assignment. “This includes incorporating local culture, as well as health and wellness in their stays and meetings that they attend,” says BWH’s Ferrill. “This also extends to the actual experience with the property – while personalization and contactless service are important, the human interaction is still incredibly valuable and appreciated.”
