Saturday, December 21, 2024

Cost the biggest concern for travel buyers in 2025 – GBTA poll

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Cost control is the biggest concern of global travel buyers moving into 2025, as corporates navigate budget limitations alongside pressures for technological and sustainable transformation, according to a survey by the Global Business Travel Association.

An October poll of 890 travel professionals found that most buyers (71 per cent) are optimistic about the year ahead, despite concerns regarding rising travel costs.

Three quarters (78 per cent) of travel buyers highlighted cost control as one of the most important strategic priorities for their programme next year, while a further 74 per cent fear travel budgets will not keep pace with rising costs.

This is despite the fact that more than half (52 per cent) expect corporate travel budgets to increase in 2025, with some 7 per cent anticipating budgets to be “significantly” higher. Only 16 per cent of buyers surveyed expect reduced budgets and a further 17 per cent expect to limit business travel due to economic concerns.

Most buyers (75 per cent) also cited cost as the biggest barrier to integrating sustainability initiatives into their programmes this year.

Additional challenges expected for the year ahead include employee compliance, according to 40 per cent of buyers, while a further 40 per cent also expressed concerns regarding ‘technology evolution’, citing budget constraints, integration issues and data security issues.

Nevertheless, nearly half (49 per cent) of corporates plan to ramp up investments in technology in 2025, with some also looking to incorporate artificial intelligence.

The survey found only 14 per cent of buyers currently use AI in their travel programmes, but this marked an 8-point increase from 2023, suggesting a heightening interest and adoption rate. AI is not a top priority for 34 per cent of buyers surveyed and 26 per cent view it as a low priority.

Navigating new distribution capability (NDC) is another area of concern moving into 2025. While 29 per cent of travel management companies, online booking tools and global distribution systems reported ‘smooth’ NDC content implementation in 2024, half (52 per cent) encountered challenges.

Nearly a third (31 per cent) of travel buyers also reported challenges with NDC implementation this year. According to the survey, NDC adoption is stronger in Europe (54 per cent) and APAC (50 per cent) than in North America (45 per cent) and LATAM (29 per cent).

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