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6 Ways Business Travel is Changing in 2025. Are You Prepared?

Feb 24, 2025

Rising Travel Costs Demand Smarter Management: LodgeLink Delivers Savings and Control

Crews are expected to be on the move in 2025.

By the end of 2024, U.S. companies are expected to spend as much—or more—on corporate travel than they did before the pandemic, according to Deloitte’s 2024 Corporate Travel Study.

In 2025 alone, U.S. business travel spending is projected to reach $350 billion, with global business travel spending expected to hit $2 trillion by 2028, according to the Global Business Travel Association (GBTA 2024 Outlook).

With demand increasing, companies must manage expenses wisely to avoid overspending.

GBTA's latest poll showed business travel spending experienced notable shifts in 2023 compared to the previous year, with air travel seeing the most significant increase, rising from $183 billion to $282 billion—a jump of nearly 54%.

Lodging also saw a substantial boost, up 27% from $394 billion to $501 billion. Food and beverage spending grew by 28%, while ground transportation saw a more modest rise of 20%. Meanwhile, "other" travel expenses increased at the slowest rate, up just 17% year-over-year.

With these numbers climbing, businesses need cost-effective strategies to keep travel spending in check.

3. Companies Are Spending More on Travel

GBTA’s Business Travel Outlook Poll of 2025 suggests that the majority of businesses spent more on travel in 2024, with four out of five buyers (77%) responding that their company’s spending increased last year.

Looking forward, the poll results show an overall positive industry trajectory with almost half (48%) of travel buyers expecting their companies to take more business trips in 2025, and 57% anticipating increased travel spending this year.

With travel demand growing, businesses must find ways to optimize budgets without sacrificing essential trips.

The Uncertain Future of Business Travel Costs 📈

As travel costs climb, managing expenses efficiently is more important than ever. And it’s not just airfare—hotel prices are creeping up too, adding another layer of financial strain.

The question is: how can businesses keep budgets under control without compromising essential travel? While the latest forecast predicts “relative stability” ahead, business travel remains on a delicate tightrope, according to the GBTA.

External factors—geopolitical risks, inflationary pressures, labor shortages, and rising sustainability costs—could introduce new volatility, making it harder for companies to manage expenses.

4. Airfare Prices Are Rising

The good news? After a sharper 1.9% rise in 2024, airfare prices are expected to only increase by 0.6% in 2025.

In the North American market, price growth is expected to moderate to 0.5% in 2025. Yet, despite this smaller increase, airfare prices remain high due to supply constraints and rising maintenance costs.

According to GBTA, airlines are expected to receive 19% fewer aircraft than anticipated by the end of 2024, leading to a 30% increase in leasing costs compared to pre-pandemic levels.

These constraints, combined with unexpected maintenance issues, are limiting capacity and keeping airfare prices elevated.

5. Hotel Rates Continue to Climb

Hotel prices are stabilizing after big jumps in previous years, but they aren’t going down.

In North America, GBTA is projecting hotel rates to grow by 2.2% in 2025, resulting in an average daily rate (ADR) of $187. This growth is influenced by sustained high occupancy rates, limited new hotel supply, and ongoing labor challenges, all of which contribute to keeping ADRs elevated.

Businesses should budget accordingly and secure pre-negotiated rates to manage lodging costs.

By leveraging smarter booking tools, negotiated savings, and comprehensive travel support, LodgeLink helps businesses navigate rising costs, improve efficiency, and make every dollar count. That’s why 800+ companies across Canada the U.S. and Australia trust us to manage their workforce travel.

As workforce travel grows more complex, businesses need solutions that reduce costs, simplify management, and support their crews on the road. LodgeLink delivers all that and more—helping companies save money while staying ahead of the evolving travel landscape.