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Published: September 2025
Produced by Research & Intelligence
By Mike Eggleton, Natalia Tretyakevich, Melina Sibaja
This quarter’s Travel Market Report begins with a abstract of the International Air Transport Association’s (IATA) newest outlook for the airline trade in 2025 and compares it to the predictions for this 12 months it had beforehand made in its December 2024 outlook.
Sticking with airways (and IATA), we current an replace on the efficiency of the worldwide airline trade up to now this 12 months.
The new U.S. administration has been busy implementing a number of immigration rule adjustments geared toward bettering the management and safety of its borders. We present a abstract of a number of the key developments.
We’ve performed some detailed main analysis amongst a panel of journey consumers. We share their fundamental insights about sourcing and provider administration.
We end this quarter’s report with the highlights of a current traveler survey, by which we learnt extra about their experiences and preferences when reserving lodging for a enterprise journey.
At 4.0%, July’s improve in world airline site visitors meant a 3rd consecutive month of 3-5% progress.1 After the disruption brought about to year-over-year comparisons by Easter’s later timing in April, a market development is now rising of regular progress, albeit at round half of 2024’s stage. Domestic demand elevated by simply 1.9%, with worldwide demand rising by 5.3%, rebounding from June’s 3.2%.
In the primary seven months of 2025, airline site visitors grew by 5.0%, combining 2.1% and 6.9% progress from home and worldwide site visitors, respectively. Emerging markets drove this progress, with Asia Pacific main the way in which with an 8.3% enlargement in demand. Latin America (7.6%) and Africa (6.7%) additionally outpaced the worldwide common.
Even the mature European market has carried out fairly properly up to now this 12 months, with 4.4% progress falling simply in need of the worldwide quantity. And the Middle East, the place site visitors has been disrupted by geopolitical occasions, posted progress of 5.1%. This leaves North America because the standout area, with airline site visitors being basically flat up to now this 12 months, weighing on world progress. And but, after setting apart the consequences of the later timing of Easter, the month-to-month numbers present some motive to be extra optimistic in regards to the North American scenario. After dipping by 0.5% in May, site visitors was flat in June and expanded by 1.9% in July, its strongest efficiency since January. This largely mirrored an improved contribution from the all-important U.S. home market, the place a five-month run of weak numbers ended with July’s 1.5% enlargement. Growth additionally returned to the area’s worldwide airline site visitors.
In 2025’s first seven months, home air journey demand rose by simply 2.1%. However, some main markets, together with Brazil and India, defied the malaise implied by such a low quantity.
Even the 4-6% progress in China and Japan was above a worldwide common, which was depressed by continued weak spot within the U.S., the place site visitors dipped by 0.3%.
This weak spot was echoed by July’s whole site visitors numbers for the completely different areas.
In a month when world airline site visitors elevated by 4.0% year-over-year, demand in North America rose by 1.9%. While this improved on current months, it was nonetheless beneath the two.9% delivered by Europe, a equally mature market.
Growth stayed robust in Asia Pacific and Latin America and rebounded within the Middle East.
During 2025, U.S. authorities departments have been appearing to strengthen the management and safety of the nation’s worldwide borders. This has implications for enterprise vacationers and journey applications, which should navigate new guidelines and added complexity.
On June 9, the U.S. authorities reinstated and expanded a journey ban impacting nationals of 19 nations. This was justified on nationwide safety grounds referring to terrorism issues, insufficient vetting and excessive visa overstay charges. Nationals from 12 “very high-risk” nations are actually barred from coming into the U.S.: Afghanistan, Chad, Republic of Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Myanmar, Somalia, Sudan and Yemen. Both immigrant and non-immigrant visas are totally suspended. An additional seven nations are topic to partial bans. Specific visa classes have been suspended for nationals from Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela. Importantly, the restrictions bar most visa sorts utilized by enterprise vacationers. It is feasible to hunt a waiver or an exception, however this should be performed through the visa software course of. Exceptions could also be made if a traveler’s entry to the U.S. is within the nationwide curiosity, the traveler poses no safety menace, or denial of entry would trigger undue hardship. In actuality, vacationers from a banned nation now have restricted choices, in the event that they wish to go to the U.S.
To tackle issues about nations thought-about to be of a decrease threat, however with excessive visa overstay charges or restricted establish verification procedures, the U.S. has launched a 12-month visa bond pilot program, beginning August 20. So far, the scheme applies solely to nationals from two nations, Malawi and Zambia, however different nations may very well be added. Critically, the pilot program appears unlikely to have an effect on vacationers from Visa Waiver Program (VWP) nations. Business vacationers, who’re residents or nationals of 42 designated nations,2 together with 32 in Europe, in addition to Australia, Brunei, Chile, Israel, Japan, New Zealand, Qatar, Singapore, South Korea and Taiwan, ought to be exempt. Currently, enterprise vacationers with passports issued by Malawi and Zambia could also be required to pay a $5,000, $10,000 or $15,000 bond, which will likely be forfeited if the phrases of the visa are violated. Such visas are legitimate for single-entry solely, cowl stays of as much as 30 days and require entry/departure through Boston Logan International, New York JFK or Washington Dulles International airport.
From September 2025, the U.S Department of State suspended the Dropbox Program, which offered an interview waiver for a lot of non-immigrant visa functions and renewals. While restricted exemptions exist, practically all non-immigrant visa candidates should current themselves for an in-person interview at a U.S. consulate within the nation of their nationality or residence. Interviewees have misplaced the choice of being interviewed in some other nation, the place processing occasions is likely to be shorter. For nationals and residents of greater than 50 nations, primarily in Africa, the principles are even stricter, with all candidates required to attend in-person interviews.
Travel bans and the circumstances imposed on vacationers affected by the visa bond program add new complexity for worldwide enterprise journey, significantly for organizations counting on expertise mobility and cross-border collaboration. In-person conferences, coaching and project-based work within the U.S. will now not be doable for some employees. Companies might want to think about distant alternate options or redeploy personnel from third nations to keep up operations. With practically all visa functions and renewals now requiring an in-person interview, corporations should plan an earlier begin for any visa processing. Employees might have further time to organize for and attend interviews. Even the place journey remains to be allowed, corporations might anticipate extra layers of planning and threat administration for his or her staff.
Added to the oblique prices related to these adjustments, the U.S Customs and Border Protection (CBP) company has introduced a September 30 payment improve for vacationers in a position to make the most of the Electronic System for Travel Authorization (ESTA).3 Visitors from visa-waiver nations, together with most E.U. member states and the U.Ok., face a bounce within the ESTA payment from $21 to $40. While the journey promotion payment a part of the ESTA is unchanged at $17, the operational payment has elevated from $4 to $10, and the One Big Beautiful Bill Act has launched a brand new $13 Treasury General Fund payment.4 The price of an ESTA had beforehand elevated in May 2022 from $14. ESTA authorization stays legitimate for 2 years, except a traveler’s passport expires beforehand.
In this survey, we checked out how organizations supply and handle journey suppliers. We deal with procurement methods, key challenges, priorities, and provider administration developments that affect journey program efficiency. Our findings are based mostly on a web based survey of 132 journey consumers worldwide, performed in April 2025.
Sourcing priorities
Savings and value management is the highest precedence for journey consumers on the subject of sourcing and provider administration: Nearly 9 out of 10 agreed. Around one-third of consumers prioritize information assortment, compliance management and provider consolidation to extend leverage.
Sourcing duties
Contract negotiations and administration topped the checklist ofthe most time-consuming duties associated to provider sourcing and administration, cited by over half of respondents. Around 4 out of 10 pointed to managing Requests for Proposals (RFP) and monitoring provider information and efficiency as important time investments.
Challenges
Top sourcing issues embody excessive prices and charge fluctuations, cited by over 40% of respondents. Among different continuously talked about points, journey consumers talked about fragmented content material, the complexity of the RFP course of, and technological shortcomings. Additionally, one in 5 want to have a broader collection of suppliers to select from.
Frequency of contract negotiations
Travel consumers shared insights on how typically they negotiate contracts with their journey suppliers, revealing notable variations throughout the classes. Hotel agreements stand out for his or her consistency, with 87% being renewed yearly. In distinction, airline and automotive rental contracts are typically of longer length. Agreements with journey administration corporations (TMC) are extra blended, lasting principally between 2 and 5 years.
Cost containment measures
Cost discount is the highest precedence and best problem for journey consumers associated to sourcing and managing journey suppliers. To tackle this, consumers make use of a spread of methods geared toward reducing provider prices. The mostly used approaches, every adopted by roughly 40–50% of consumers, embody provider consolidation, renegotiation of current agreements and using re-shopping instruments.
Looking forward, buyersconsider renewing provider agreements for longer time intervals, re-negotiating current contracts and issuing new necessities.
Sourcing developments
Buyers anticipate an elevated use of synthetic intelligence, moremulti-year agreements, steady sourcing and provider and platform consolidation to be among the many main provider administration developments within the upcoming years.
Find out extra
We’ve highlighted simply a number of the key findings from our journey purchaser survey on sourcing. You can discover out far more element within the full report that we’ll be publishing quickly.
In this survey, we explored traveler selection ofhotelsandother sorts ofaccommodationwhen touring for enterprise, in addition to their bookingbehavior and expertise throughout their stays. The outcomes are based mostly on a web based survey of 1,035 enterprise vacationers in North America, Europe and Asia Pacific, performed in May 2025.
Booking lodging
While over 4 out 5 vacationers ebook lodging through a web based reserving device (OBT), one in 5 use provider web sites. Nine out of 10 ebook on a desktop/laptop computer; just one in 10 use a cell phone to order a resort keep.
Corporate bank card is by far the preferred methodology of paying for lodging with three-quarters utilizing it.
Factors influencing lodging selection
Location performs a significant position in influencing vacationers’ resort choice: Three-quarters of respondents think about it essential. Their employer’s coverage and value are additionally within the top-three. A traveler’s previous expertise, the property’s model and participation in a loyalty program are additionally important for a lot of. Sustainability is on the backside of the checklist, being talked about by just some vacationers.
Challenges when reserving lodging
Insufficient resort charge limits set by the employer is the most important problem vacationers face when reserving lodging. One in three see no important issuesduring reserving course of.
Hotel loyalty applications
A major 80% of surveyed enterprise vacationers are members of resort loyalty applications. This determine is even greater in North America, the place 99% take part in such applications. In distinction, participation in Europe and Asia Pacific is decrease, at 70% and 58%, respectively.
Across the worldwide pattern, three-quarters of vacationers are members of a number of resort loyalty schemes, and two-thirds continuously keep at accommodations affiliated with the applications they help. When it involves retaining factors earned from lodging on enterprise journeys,75% of travelersreport that their employers enable this.
Sustainability
While 16% of vacationers think about environmental components when reserving lodging, half by no means or hardly ever take sustainability into consideration. Four in 10 vacationers don’t think about any sustainability attributes when reserving lodging. Meanwhile, one in 5 search for inexperienced options akin to eco-certifications, the absence of single-use plastics, low emissions, lowered water consumption and restricted housekeeping.
Bleisure
Six vacationers out of 10 sometimes mix enterprise journeys with leisure. Four out of 10 might carry their companions, household, or pals on enterprise journeys, although most hardly ever achieve this.
Find out extra
These are just some of the important thing findings from our survey. You can discover out far more element within the full report.
Share your ideas
Do you will have any questions or feedback relating to this report? Please e-mail Mike Eggleton to share your ideas.
This web page was created programmatically, to learn the article in its unique location you’ll be able to go to the hyperlink bellow:
https://www.bcdtravel.com/resources/travel-market-report-q3-2025/
and if you wish to take away this text from our web site please contact us
This web page was created programmatically, to learn the article in its authentic location you…
This web page was created programmatically, to learn the article in its unique location you…
This web page was created programmatically, to learn the article in its unique location you…
This web page was created programmatically, to learn the article in its authentic location you…
This web page was created programmatically, to learn the article in its unique location you…
This web page was created programmatically, to learn the article in its authentic location you'll…