THE 2025 OUTLOOK

M&As MULTIPLY

James Parkhouse, CEO, Take2Eton Group

“The spate of travel management company mergers and acquisitions in 2024, particularly among small and mid-size TMCs is likely to continue throughout 2025. This is being driven primarily by the need for these TMCs to remain competitive, to navigate the increased complexity in managing travel, to invest in new technology, and to combat increased operational costs. They will be looking out for M&A opportunities with businesses that have complimentary skills and services or that can fill a gap in their technology solutions or service offering. However, the trend is also being driven by slower global economic growth and a significant slowdown in the growth of business travel volumes. The post-pandemic recovery in transaction volumes to pre-2019 levels happened sooner than anyone expected. We are back to a similar pre-pandemic market dominated by mature travel programmes and cost-conscious corporates, with carbon reduction targets thrown into the mix. Clients are spending the same or not planning to spend significantly more, so volumes are not growing to the same degree. The only way for TMCs to grow their topline is to win business off each other or buy each other – or a bit of both.” 

TRIP VALUE

Catherine Logan, regional SVP, EMEA & APAC, Global Business Travel Association

“In 2025, global business travel spending is predicted to reach $1.63 trillion as the industry enters its next chapter. However, it will be anything but 'business as usual' as changes and innovation continue shaping the landscape. The industry is moving into a ‘new normal,’ focusing on more productive, personalised and responsible travel. Every trip must deliver value – not just for organisations but also for people and for the planet. Moving forwards, travelling more sustainably won’t be optional or best practice. Companies and travellers will more closely assess how to make trips as purposeful as possible. We'll likely see the continued decline of one-day business trips, giving way to longer, multi-functional trips with bespoke itineraries. Additionally, traveller considerations will be factored into many of the shifts. They’ll seek more fulfilling, rewarding trips that balance work objectives with personal wellbeing. ‘Travel smarter and stay ahead’ - that will be the mantra for 2025.”

DATA MATURITY

Chris Lewis, founder and CEO, Travelogix

“As we move into 2025, the emphasis on data maturity within the business travel sector will reach unprecedented levels. Companies increasingly recognise that leveraging data isn’t just about collecting it; it's about refining, integrating, and using it strategically. Sustainability reporting is a prime example. We’ve seen an increase of over 65 per cent in sustainability-related reporting in the past year alone. Mature data ecosystems are essential for tracking emissions, demonstrating progress, and supporting the broader sustainability goals that should now be central to travel programmes. Another area gaining significant traction is the analysis of unstructured data. The ability to analyse unstructured data – from traveller feedback, social media posts and emails to external resources like travel advisories and weather data – has the potential to offer new dimensions of intelligence. TMCs and travel managers can discover richer, context-driven insights by integrating this data into existing systems. These insights can inform everything from supplier negotiations to real-time risk assessments, all of which can deliver a competitive advantage.”

GROUND FORCE

Daniel Price, co-founder and CEO, Jyrney

“There has been a notable increase in interest from corporates seeking managed ground programmes, with demand driven by priorities such as cost control, safety and the need for actionable data to support sustainability goals. With the rise of global brands and technology improvements from local providers, aggregation platforms can now consolidate this fragmented space. Ground transport can finally be brought into corporate programmes with precision, control and transparency. Features like automatic rebooking, supplier performance tracking and CO2 monitoring make managing it as effective as managing flights or hotels. 2025 will be the year travel managers demand even more from their TMCs. They won’t settle for offline airport transfers. Instead, they’ll want integrated ride-hailing, first-mile and last-mile coverage and everything in between. Ground transport is the connective tissue of corporate travel, seamlessly linking every stage of a trip. It is now poised to take its rightful place as a core part of managed travel programmes, shaping the future of corporate mobility.”

AI AGENTS

Keesup Choe, chief executive officer, PredictX

"The biggest and most exciting development in terms of using AI in business travel will be the creation of AI agents. This means using ‘prompt engineering’ to customise AI to perform a very specific task. It’s different to using computer code, or engineering. It’s more like a foreign language, where you need to know more than a few basic phrases, so that you can give business instructions to AI, to control it and make it effective. A corporate could create as many of these AI agents as they want to. Think of it as creating a virtual workforce. For example, creating an AI agent that’s an expert on contracting, and setting it a goal to solve all outstanding contractual issues with a supplier. AI agents will be able to automate routine tasks and provide intelligent insights. But an AI agent could also be created to provide support with a one-off issue – for example, a security situation in a certain destination, to provide real time risk assessment and assistance with flight disruption.”

TRAVEL TENSION

Scott Gillespie, founder and CEO, tClara

“Recent election results in Berlin and Washington make government-led sustainable travel policies and investments less likely, as does the failure of Baku’s COP29 to ratify the need for global aviation taxes. Germany’s recent tax increase on airfares met strong resistance from IATA and VDR, narrowing the potential funding options for airline decarbonisation initiatives. This message won’t be lost on UK and EU aviation policy leaders. Shell underscored the ugly financial prospects of investing in SAF by pausing construction of its SAF facility in Rotterdam. SAF offtake agreements will remain an unpopular choice for companies as more cost-effective decarbonisation options are available. There will be no significant progress in hydrogen- or battery-powered flight or carbon capture and storage anytime soon. Travel buyers at carbon-sensitive companies will get unwanted attention when many of the EU’s CSRD reports detailing Scope 3.6 emissions begin surfacing in May. Many companies will reluctantly conclude that reducing travel emissions requires a reduction in travel.”

THE IMPACT OF AI

Mark Cullen, chief commercial officer, Amadeus Cytric

"We will see the potential of Generative AI truly come to life in 2025, making a material impact, at scale. In a human, conversational style, interactive assistants will help business travellers with every element of the trip, from planning and booking to proposing itineraries, right through to the post-trip experience – all within company policy. We are coming into a world where travel and expense solutions will execute tasks in the background and interact with users at the right time, in an intelligent way. This leaves time for travellers and travel managers to focus on complex tasks. We anticipate increased efforts dedicated to personalisation and dynamic policies that adapt in real-time to changing circumstances. Generative AI will have a huge effect on employee productivity and satisfaction, as well as helping corporations improve compliance rates and achieve sustainability goals. The impact of these tools will completely change the lives of business travellers and travel managers.”

LOOKING EAST

Martin Klima, chief customer officer, SilverDoor

“Many corporate clients are turning their attention to Eastern Europe both from an investment and relocation perspective. Countries including Croatia, Romania and Hungary are already seeing an increase in demand which looks set to undergo significant acceleration in the months ahead. As corporates continue to keep a keen eye on the balance sheet, much of Eastern Europe’s appeal lies in the cost efficiencies it offers. It is a region that is set for economic growth in the longer term with investment in both its infrastructure and technology that in turn look set to fuel wider growth across a host of sectors including manufacturing. As a result, both corporate demand for, and supply of, more serviced apartment and extended stay accommodation options are expected to see significant growth in the months to come. The Middle East is also set to see a rise in both demand and supply, following continued investment in both its transport infrastructure and technology to alleviate some of the administrative processes required for travel to the region.”

LONG STAYS

James Austin, director of organisational development, Access Bookings

“In 2025 we expect to see a notable shift towards longer blended stays for business and media travellers, particularly those involved in the TV and film industries. Conversations with producers and crew in sectors like film and TV suggest that longer stays, both in the UK and internationally, are expected to rise, and will be driven by factors such as cost-effectiveness, sustainability, and the opportunity to combine work with leisure, enabling travellers to incorporate family, friends, or colleagues into their itineraries. While private rental properties have become increasingly popular for corporate stays in locations like London, Edinburgh, Paris, Amsterdam, Seville and major US cities, we foresees a decline in short-term bookings in these areas. Growing resistance to private rental properties among city authorities has prompted stricter regulations and a reduction in availability of such properties. As a result, the private rental market is expected to tighten, making hotels a more reliable option for long-term stays.”

LEISURE LEADS

Andrea Caulfield-Smith, CEO, Advantage Travel Partnership

"The business traveller population is getting younger and expectations are changing on how bookings will be identified, made and fulfilled in the future. Travellers now want to have more leisure-like control of their trips rather than following a rigid travel policy and we are seeing companies now embracing a more flexible approach. They are allowing travellers to make informed choices of their own based on personal preference whilst working within a framework of preferred suppliers. Travellers offered a set per diem will have the choice of how that is spent on their trip, whether they opt to fly low cost and stay in a more premium accommodation or fly with a flag carrier – and get their loyalty programme benefits – and stay in a budget hotel. This will move travel policies and programmes forward for the future generation, but companies will need to prepare to adapt and negotiate.”

TAKING ACTION

Sally Higgs, consultant,
Festive Road

"2025 could be the year of sustainability action in business travel. Despite numerous webinars and panel discussions from top-performing travel managers showcasing their sustainability achievements, we've yet to see widespread, concrete action on travel emissions reductions. In November 2024, GBTA shared results from its Sustainability Acceleration Challenge, revealing a sustainability maturity score of 1.3 out of 5 across participating business travel programmes. This score can be interpreted in multiple ways. While seemingly low, it highlights significant opportunities for improvement and should reassure travel managers who feel they've been left behind in sustainability efforts. This low benchmark should motivate travel managers to prioritise taking their next step, small or large, to further integrate sustainability into their travel programs. Eco.mio aptly summarised this with an adapted Anne Marie Bonneau quote: "We don't need a handful of people doing sustainability perfectly. We need millions of people doing it imperfectly".”

USER EXPERIENCE

Jack Ramsey, chief executive officer, TripStax

“In recent years, a few mega-funded B2B travel entrants have focused on providing consumer grade user interfaces and experiences (UI/UX). Whilst they’ve invested heavily in this and the consumption of vast amounts of content, they’ve also had to acquire traditional TMCs to feed both their scaling and the cumbersome back-office requirements the industry perpetuates. These businesses are working towards a UI/UX future akin to consumer shopping applications, but the rest lag behind. OBTs servicing customers on the legacy TMC model will get left behind if they don't invest in UI/UX, as well as the even more archaic agent facing points of sale that still dominate most TMCs’ infrastructures.  2025 must be the year where we see material leaps in how UI/UX is approached. I'm convinced that the online vs offline madness will start to diminish. We'll see the emergence of the same technology and UI/UX whether you're an agent or traveller/booker. Imagine a world where travellers and agents work in the same UI/UX to manage their trips!”

ON THE MOVE

Paul McCorkell, AVP global strategic sales EMEA, Enterprise Mobility

“In 2025 we will see more demand for personalised mobility solutions designed with end-users’ needs in mind as work travel patterns change and evolve. Businesses will be looking for mobility innovation to provide a better service to their employees, and they will seek expertise and consultancy to support that transition. What roles do multi-modal travel and micromobility play? How can employees be encouraged to make better mobility choices? How do they introduce EVs? Our sector is changing rapidly with new legislation, disruptive technologies and evolving consumer and commuter travel habits. Unmanaged travel, such as grey fleet, also remains a Europe-wide challenge that more businesses are going to have to face head-on over the coming months. Having a holistic managed travel strategy will become more important than ever for businesses to match emerging needs, achieve their objectives and meet government targets.”

THRIVE IN 2025

Odete Pimenta da Silva, MD, Netherlands Association for Travel Management

“As the business travel industry looks toward 2025, recovery and growth are anticipated, with global corporate travel spending likely surpassing pre-2020 levels. In-person meetings remain essential for driving economic activity and innovation, although companies are focusing on more strategic travel approaches, prioritising quality over quantity, especially with the rise of hybrid work models. Sustainability continues to be a key focus, driven by stricter environmental regulations, particularly in Europe. Companies are adopting greener travel policies, such as using rail for short distances and increasing carbon offset efforts. Meanwhile, advocacy for streamlined regulations is critical to address issues like cross-border compliance, visa delays and administrative complexities. By tackling these challenges, the business travel industry is well-positioned to thrive in 2025, with a focus on innovation, sustainability and regulatory alignment.”

GETTING PERSONAL

Stuart Birkin, general manager London & Glasgow, CTM

“We fully expect the demand and expectation for a more personalised approach to travel to bear influence on supplier offers in 2025, with the supply chain shifting towards a more flexible, diverse approach as trips are extended to accommodate more bleisure and personal travel. 2025 will see a significant increase in more wellness-focused offers such as sleep pods, gym access and healthy dining options, more information available on allergens to tailor F&B orders, and sustainability features, all of which will need the development of more comprehensive apps with richer content that can support travellers' personal needs and priorities as well as their corporate programme. It is crucial that travel managers have a clear and present understanding of what different generations want and need so that they can build programmes and policies that are fit for traveller purpose. There are certainly differences between generations. Understanding what that means at a practical level is key.”

POWER OF AI

Karim Malak, CEO, easyHotel

"AI continues to be a topic at the forefront of industry discussions, not only in the way it can create text and content, but also through AI-powered search tools. This technology has the potential to revolutionise trip planning by quickly generating solutions tailored to customers' needs and availability. For instance, a food enthusiast on a budget can find low-cost transport, a wallet-friendly hotel and a Michelin-starred restaurant, with bookings handled seamlessly. There are also administration improvements which AI-powered search can disrupt including traditional online travel agents, digital marketing and revenue management. Businesses must adapt their algorithms, methods, tools and teams to stay competitive. However, whilst AI will undoubtedly transform our sector, it cannot replace emotional intelligence – hospitality remains a service industry where high-quality interaction is essential. This applies to customer relationships, but also to employee relationships where strong company leadership must navigate the many challenges faced by the sector.”