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Cost biggest challenge for 2025 new insight from corporate travel buyers reveals

by | Jan 6, 2025

As corporate travel managers globally prepare for 2025, there is one issue impacting them above all others – cost. Whether it’s increasing costs, the pressure to reduce them, leakage, airline pricing or budget restrictions – cost is king.  

While airline pricing was the leading cause of many a travel manager’s headache over the last 18 months, this has been squeezed into third place by the pressure of increasing costs and ‘distribution’, which has risen from fourth.

New in for 2025 are leakage and data/reporting. Dropping out of the top ten are accommodation pricing and the pressure to be more sustainable.

BTN Group Executive Vice President Louis Magliaro: “2024 has been an unsettling year geopolitically with elections in the UK, US and France among others and wars continuing to rage in Ukraine, Gaza, Lebanon and Syria. This has had a huge impact on the markets and costs globally have spiralled.

“It’s no surprise that travel managers are feeling the pinch or that it’s pushing sustainability further down the agenda for so many. ‘The pressure to be more sustainable’ has dropped out of the top 10 challenges overall and among respondents in the UK and the rest of the world. However, there’s no question we are all committed to travelling and managing travel more sustainably – we are seeing that through enhances to technology, access to data and investment in SAF, for example.

“While airline pricing was top of the challenges last year, the positive news is that we are beginning to see prices in key markets fall, and air capacity and competition is returning. It’s also interesting to see leakage joining this year’s top 10 – this was debated extensively at Business Travel Show Europe in June, as were all the key pain points and opportunities facing corporate travel managers. The show returns to London from 25-26 June. 2025 also sees the launches of Business Travel Show APAC from 16-17 April in Singapore, and Business Travel Show America in New Year from 15-16 October in New York.”

  • Leakage and data/reporting creep into top 10
  • Accommodation pricing and sustainability fall from 7 and 8 last year to leave the top 10

The table below shows newly released data from Business Travel Show Europe and how it compares to responses in June and December 2023. Buyers were asked to highlight the three biggest challenges facing them in 2025 from a multiple choice of 34.

2025 (Nov/Dec 24)   2024 (December 23)   2023 (June 23)  
Pressure of increasing costs 28% Airline pricing 30% Airline pricing 22%
Distribution/NDC/One Order 22% Pressure of increasing costs 29% Duty of care/traveller risk 22%

Airline pricing

 

20% Cost cutting 21% Hotel/serviced accommodation pricing 21%
Budget 19% Distribution/NDC/One Order 21% Appointing new TMC 20%
Cost cutting 18% Budget 16% Pressure of increasing costs 17%
Data / reporting 15% Appointing new TMC 16% Globalisation 16%
Appointing new TMC 13% Hotel/serviced accommodation pricing 14% Availability 15%
Enforcing compliance 13% Pressure to be more sustainable 10% Enforcing compliance 14%
Leakage 13% Duty of care/traveller risk 10% Keeping up to date with legislation and restrictions 12%
Duty of care/traveller risk 12% Enforcing compliance 9% A change in my role 12%

 

The following table shows how the responses differ between travel managers in the UK, the rest of Europe and the rest of the world:

UK   Rest of Europe   Rest of the World   
Pressure of increasing costs 30% Airline pricing 24% Pressure of increasing costs 35%

Cost cutting

 

20% Distribution / NDC / One Order 24%

Distribution / NDC / One Order

 

26%
Demonstrating value 20%

Pressure of increasing costs

 

24% Duty of care 26%
Enforcing compliance 20%

Budget

 

22% Airline pricing 22%
Budget 18% Data and reporting 22%

Cost cutting

 

17%
Distribution / NDC / One Order 18%

Cost cutting

 

17% Dynamic pricing 13%
Airline pricing 15% Appointing new TMC 15% Hotel / serviced accommodation pricing 13%
Appointing new TMC 15% Pressure to be more sustainable 15% Keeping up to date with technology 13%
Leakage 15% Leakage 13% Budget 9%
Hotel / serviced accommodation pricing 13% A change in my role 10% Demonstrating value 9%

 

Read three related articles in our latest digital magazine

in the Winter 2024/25 issue of Think Global People/Relocate magazine here 

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