Navigating the Future: 4 Bold Predictions for Travel and Expense Trends in 2025

In the current dynamic environment, organizations must swiftly adapt to emerging disruptions or risk lagging behind. But what implications does this have for the travel and expense (T&E) sector? Additionally, how will shifting T&E trends influence your organization?

For instance, we have already observed novel applications of AI, such as predictive analytics for spending management, beginning to simplify travel oversight and expense documentation. Moreover, in light of power shifts within the travel sector, travel management companies (TMC) continue to undergo consolidation.

SAP Concur specialists anticipate that these trends will persist—or even intensify—into 2025. To prepare for the trends shaping T&E in 2025, here are four critical predictions to monitor.

Prediction #1: Declining Inflation Will Enhance Travel Opportunities

Value for your investment

In 2023, inflation drove travel expenditures beyond pre-pandemic benchmarks, with business travel expenses anticipated to total $1.48 trillion by the conclusion of 2024, as reported by the Global Business Travel Association. However, travel volume did not keep pace, leading to greater expenses for a reduced number of trips. As inflation decelerates, organizations can look forward to receiving greater value from their T&E allocations.

Fulfilling traveler demands

Travelers will seek more tailored, self-service booking capabilities, along with real-time alerts regarding disruptions, safety, and health issues. The incidence of blended business and leisure travel is also increasing. Companies must implement adaptable travel regulations to maintain workforce productivity and satisfaction.

Maintaining a competitive edge

To maintain an advantage, concentrate on providing streamlined, customized booking experiences for employees, featuring options such as loyalty recognition, comprehensive transportation and accommodation information, and timely travel alerts. Applications should assist travelers with various needs, from passport renewals to real-time updates on political unrest and environmental risks.

On the operational side, integrating T&E into a singular cohesive platform is vital. Fragmented systems can increase expenses and mistakes, while a unified platform improves user experience and supports smarter budgeting, improved negotiations, and fewer errors.

Prediction #2: Confidence in Generative AI for Travel and Expense Management Will Expand

The influence of AI on T&E

AI will persist in making significant impacts in T&E management. As finance and travel departments revise policies to integrate AI, automation will alleviate administrative burdens. AI will increasingly take over tasks such as transaction validation for adherence, fraud detection, and identifying spending trends that might go unnoticed by humans. Anticipate more intelligent audits, reduced manual expense documentation, and increased time allocated for exceptions.

AI will also improve the booking experience by providing personalized itinerary suggestions based on traveler preferences and company policies. Generative AI will aid in price predictions, increasing accuracy in pre-trip approvals, while chatbots will deliver real-time trip updates and disruption management.

Two routes for AI

By 2025, finance leaders will adopt AI to enhance decision-making, forecast expenditures, and manage risk. Meanwhile, travelers will remain cautiously optimistic about AI. Despite the fact that the SAP Concur Sixth Annual Global Business Travel Survey discovered that 95% of business travelers are willing to utilize AI, they will regard it as a “helpful assistant” rather than fully relying on it for managing bookings or filing expense reports.

Prediction #3: Continued TMC Consolidation Will Favor Airlines and Travelers through NDC

The implications of TMC consolidation and content concerns

TMCs will persist in consolidating, gaining increased negotiation leverage with suppliers. This may lead to lower costs and improved deals for clients. Furthermore, the trend of content fragmentation will decelerate; by 2025, both airlines and business travelers will fully appreciate the advantages of New Distribution Capability (NDC), such as enhanced personalization, bundling, and continual pricing.

Leveraging trends

To navigate these transformations, ensure your T&E system is compatible with any TMC and provides a wide array of travel options, ranging from hotels to budget airlines and rail providers. Adaptability in your travel platform will enable you to adjust to fluctuating supplier environments and maximize savings.

Prediction #4: Finance Leaders Will Cooperate Across the C-Suite to Deploy Emerging Technologies

The expanding influence of finance

Finance’s influence will continue to grow, as CFOs increasingly collaborate with IT and security teams to guarantee the safe and effective implementation of new technologies. This entails evaluating investments in AI resources for T&E management to enhance efficiency, ensure compliance, and improve overall cost management.

Data integration and protection

In 2025, finance will be crucial in consolidating data across various functions to eliminate silos, enhancing efficiency and security. With cyber threats on the rise, the finance department will partner with IT to bolster infrastructure, minimize exposure, optimize costs, and enhance resilience.

Commitment to sustainability

As travel volumes rise, companies will face heightened pressure to comply with sustainability regulations. Finance will guide investments in technological solutions that prioritize compliance, such as tools for tracking carbon emissions or incentives for eco-friendly travel.

Collaborative efforts for expansion

Finance leaders will collaborate with HR, IT, and engineering divisions to identify growth opportunities, automate processes, and foster innovation. This interdisciplinary collaboration will ensure technology investments align with both financial and non-financial objectives, such as ESG and talent attraction strategies.

A Bright Horizon for T&E

While no prediction is foolproof, the future of T&E appears optimistic. Anticipate advancements in AI, system integration, a variety of travel options, and cross-departmental collaboration. These advancements will not only facilitate better management of travel and expenses but also accelerate your business progress.