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Webinar recap: the new cost of business travel and how to take control

Business travel has evolved. Costs are higher, traveler habits have shifted, and finance leaders are feeling the squeeze. In our recent webinar, Ashley Corey (VP of Sales, Corporate Traveler US) and Mark Imrie (CFO, Flight Centre Travel Group Americas) dove into what is driving change and what to do about it.

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Why does business travel feel more expensive today?

Business travel is a necessity. It fuels growth, drives deals, and keeps companies connected. In today’s economy, however, the industry has been reshaped by shifting demand, supply constraints, labor costs, and new traveler expectations. Analysis now projects 6 to 7% in annual growth, with total spend reaching $2 trillion by 2029.

Growth comes at a price:

  • Airfare: Domestic fares have steadied at about $450. International tickets are still $700 higher than pre-pandemic, averaging $2,100.
  • Hotels: Average nightly rates in the US are $281. Major hubs like New York and Boston are even higher.

The takeaway: travel is unpredictable, but it will always be essential. Finance leaders need programs built for the long term – strategies that flex with changing trends and create value instead of defaulting to cuts when budgets get tight.

What factors are driving travel costs higher?

Mark outlined the perfect storm:

  • Leisure demand returned first and drained capacity.
  • Airlines and hotels are still short on planes, staff, and rooms.
  • Wages and fuel costs are rising, with unions pushing for more.

Plus, dynamic pricing technology such as NDC has allowed airlines and hotels to unbundle services and charge more for extras like seat selection, baggage, or meals. These pricing shifts have made add-ons the new normal and pushed ancillary revenues to record highs, reaching $148B in 2024.

This isn’t just market noise. It’s the structural reality shaping your P&L.

How are traveler behaviors affecting budgets?

Traveler habits are reshaping the numbers:

  • Late bookings: Tickets purchased inside 7 days cost 17% more than those booked 21 or more days out.
  • Trip length: The average trip is now 2.5 days. One-day turnarounds are fading.
  • Premium class demand: Business and premium bookings have doubled since 2019. Duty of care and retention strategies are part of the reason.
  • Younger travelers: The average age has dropped from 52 to 46. Millennials and Gen Z are more likely to combine work with leisure.

“In a post-pandemic, hybrid world, companies want to maximize face-to-face time. That is why we are seeing longer trips and fewer single-day turnarounds.” – Mark Imrie

How can companies control corporate travel costs?

Ashley Corey made it clear: Cutting travel can hurt the growth and success of your business. A trusted travel management company becomes a strategic partner to help you manage programs with confidence. Corporate Traveler partners with companies to weather industry shifts, leveraging our own data and expertise to create programs that deliver lasting value.

  • Policy that works: A manufacturing client boosted compliance from 62% to 91% in six months after rolling out our “recommended spend” tool.
  • Time efficiencies: Corporate Traveler experts save travelers 2-3 hours per booking and resolve disruptions 75% faster.
  • Real savings: Clients see 5% to 15% direct savings on fares and hotels through our negotiated rates and strategic ticketing. The total program impact is closer to 20%.
  • Visibility: Real-time dashboards and reports expose spend patterns, compliance gaps, and negotiating leverage, allowing you to optimize your program over time.

“Effective travel management creates a strategic advantage that supports today’s objectives while building capacity for tomorrow.” – Ashley Corey

What is the bottom line for finance leaders?

The chain reaction of business travel is that it’s no longer just a controllable cost, it’s a strategic lever. Travel can drive growth, boost employee satisfaction, and strengthen competitive advantage. When you manage it strategically, you create value that touches every part of the business, from retention and culture to financial performance.

Want to see more? Watch the webinar recording on demand. 

Ready to see how this plays out for your business?