According to new data from the FCM Consulting Q3 2024 Business Travel Report, travel managers are having difficult conversations about rising costs as business class fares rise and flights become more crowded.
“Our data tells two stories,” says Bonnie Smith, GM of FCM South Africa. “Yes, travel is getting more expensive, but it’s also becoming more predictable. Travel managers who book ahead are saving on airfares and getting better hotel rates. The opportunity to be strategic with your travel spend has never been greater.”
Here’s what the data tells us we can expect in corporate travel for 2025
The Sky’s Getting Crowded
Remember those ghost-town airports of 2020? Those days are long gone. Flights are packed to the rafters, with an 86.2% load factor recorded. Global passenger demand was up 8.6% in August 2024 compared to 2023. Yes, your business class tickets are costing between 6 and 8% more compared to 2023, but here’s some good news: economy fares have dropped by between 1 and 4% versus 2023.
What this means for you in 2025: If you’ve been putting off booking important client meetings in London, New York, or Dubai, now’s the time to get them in the diary. Those ‘last-minute-Larry’ days are behind us—the early bird really does get the window seat (and the better fare) these days.
The Hotel Squeeze
If you’re wondering why your hotel bills in Joburg are looking a bit steeper lately, you’re not alone. Room rates are up 14%, and if you think that’s eye-watering, spare a thought for your colleagues heading to New York, where they’re looking at $490 a night (up 15%). The average room rate is up in North America (6.8%), South America (25.4%), and Europe (5.3%), with a gentle softening of prices in the Middle East/Africa, Asia, and Australia.
What this means for you in 2025: Time to get savvy with those accommodation choices. Your usual hotel in Manhattan might need a rethink, but remember—location isn’t everything. Some of the best business hotels are just a short ride from the city centre, and they’re often better equipped for productive work.
Money Matters
Here’s where it gets interesting for your international business plans. While global inflation is cooling off (finally! ), some spots like Brazil and India are still seeing prices climb. The good news? Your rand is working harder in some markets than others.
What this means for you in 2025: Think strategically about where and when you’re sending your teams. If you’re planning business expansions, factor in these regional cost differences. Sometimes it’s worth bundling several meetings in one trip—your budget will thank you.
The good news about 2025
Airlines are promising more seats for 2025 (1.8% more in the first half of the year and 2.1% more in Africa), but don’t break out the champagne just yet. More seats don’t automatically mean cheaper fares, especially with everyone eager to tie down those face-to-face meetings.
What this means for you in 2025: Keep an eye on new route announcements; they often come with decent corporate deals. And if you’re managing a travel program, now’s the time to really get to know your airline reps or work with your TMC. Those efforts and relationships can be worth their weight in air miles.
The companies winning at the travel game aren’t necessarily the ones with the biggest budgets—they’re the ones being clever about how they spend it, says Smith, highlighting the role of a TMC in cost and value optimisation. Smith advises companies to leverage their TMC’s expertise in several key areas.
“Your TMC’s AI tools can analyse your travel patterns and suggest cost-saving opportunities you might miss, like booking premium economy instead of business class on shorter routes where the price difference outweighs the benefits.”
She also emphasises the power of consolidated buying. “A good TMC brings negotiating power you simply can’t match on your own. We’re booking thousands of room nights and flights, which means better rates and more flexible terms for our clients.”
As Smith puts it, “Success in 2025 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 achieve maximum value from every trip.”
