With expensive business travel class fares and full flights, travel managers and corporate travel agents will face tough conversations about rising costs in 2025, according to new data from FCM Consulting’s Q3 2024 Business Travel Report.
“Our data tell two stories,” he says
Bonnie SmithFCM South Africa’s GM: “Yes, travel is getting more predictable. Travel managers who book in advance, get better hotel rates. The opportunity to be strategic about travel has never been greater was”.
Here’s what the data predicts for corporate travel in 2025.
The sky is getting crowded
Flights are full, with a registered load factor of 86.2%.Global passenger demand increased by 8.6% in August 2024 compared to 2023.
Business class tickets cost 6% to 8% more than in 2023, but there is good news. economy fares have decreased by 1% to 4% compared to 2023.
What this means for 2025 If you’ve been putting off
booking those important client meetings in London, New York or Dubai, now’s the time to put them in the diary.
Those “last minute Larry” days are behind us. the early bird does get the window seat (and better fare) these days, Smith says.
Hotel press
Globally, room rates increased by 14%. For example, the average hotel rate in New York is now up to US$490 (R8 795) per night (15%).
Average room rates increased in North America (6.8%),
South America (25.4%) and Europe (5.3%), while rates softened in the Middle East/Africa, Asia and Australia.
What does this mean for 2025? it’s time to be smart about those accommodations, advises Smith. A typical Manhattan hotel may need an overhaul, but remember that location isn’t everything. Some of the best business hotels are just a short distance from downtown, and they often are are better equipped to work efficiently.
Money is important
While global inflation is cooling, some places like Brazil and India are still seeing price increases. The rand performs more in some markets than others.
What does this mean for 2025? It’s important to think strategically about where and when teams are sent. When planning business expansion, consider regional cost differences. In some cases, combining multiple meetings into one trip can be more efficient.
The good news is in 2025
Airlines promise more seats in 2025 (1.8% more in the first half and 2.1% more in Africa).
However, more seats don’t automatically mean cheaper fares, especially for companies looking to stop those face-to-face meetings.
What does this mean for 2025? Follow the announcements of new routes. they often come with decent corporate deals. And if you run a
travel program, now is the time to get to know your airline representatives or work with your TMC. That effort and relationship can be worth their weight in air miles, says Smith.
The companies that win the travel game don’t necessarily have the biggest budgets. they’re the ones who are smart about how they spend it, says Smith, emphasizing the TMC’s role in cost and value optimization.
He advises companies to leverage their TMC expertise in several key areas.
“Your TMC’s AI tools can analyze your travel patterns and suggest cost-saving opportunities you might miss, such as booking business class instead of business class on shorter routes where the cost difference outweighs the benefits.”
He also emphasizes the power of pooled purchasing. “A good TMC brings negotiating power that you just can’t match on your own. We book thousands of nights and flights, which means better rates and more flexible terms for our customers.
“In 2025, success isn’t just about managing costs, it’s about making business travel work harder for your company. Whether it’s through better planning, smarter technology, or having the right support team in your corner, you’ll get the most value out of every trip.”
