Corporate travel continues to rise, yet the outlook in 2025 is increasingly nuanced. Companies are balancing growing travel budgets with rising costs, sustainability goals, and shifting internal priorities. While many organizations plan to increase spending, larger firms are signaling selective pullbacks, reflecting a cautious approach amid complex conditions.
Deloitte notes in its report, Deloitte: Corporate Travel Forecast a Mixed Bag Amid Complex Conditions, that “After a period of normalization, new headwinds including rising costs, shifting company priorities and sustainability considerations present potential turbulence.”
Three in four travel managers surveyed (74%) report plans to expand budgets this year, similar to 2024, but fewer (68%) expect to do so in 2026. At the same time, the share of managers anticipating cuts has risen to 10%, up from 6%. Larger companies with annual travel budgets over US$7.5 million are more likely to reduce spending, with only 59% expecting increases, compared with 80% of smaller companies.
Travel incidence—the share of professionals traveling for work—has dropped from 36% in 2024 to 31% in 2025. Among those traveling, frequent travelers, taking 10 or more trips annually, are scaling back from three or more trips per month to two, highlighting the selective pullback trend in larger organizations. Budget owners also report cautious expectations, with 16% planning for reduced team travel, up from 9% last year.
Live events and training continue to drive corporate travel. Nearly two-thirds of travelers expect to attend conferences this year, while training and development is now a key growth driver.
“Corporate travel continues to be important to business and employee growth, but companies are facing potential turbulence as they adapt to conditions like rising costs and shifting internal priorities,” said Kate Ferrara, vice chair and U.S. transportation, hospitality and services sector leader, Deloitte. “This moment calls for agility and partnership between companies and their travel providers, as well as companies and their traveling employees. Understanding the goals of each trip and helping ensure the trip provides a strong return on investment is key. Meanwhile, providers who consider organizations’ travel priorities and are ready to adapt their offerings to offer the most value can be positioned to succeed long term.”
Costs are among the top travel constraints, cited by 54% of managers. To control spending, organizations focus on lodging more than airfare. International trips account for about half of spend, but destination choices continue to shift as pandemic-era restrictions ease. Corporate booking compliance remains strong, with 49% of frequent travelers always using corporate channels. Off-platform bookings through online travel agencies have declined, reflecting improved corporate booking experiences.
Sustainability is increasingly actionable. Nearly half of travel managers optimize travel practices to reduce environmental impact. Airlines using sustainable aviation fuel are prioritized by 43% of respondents.
“Cost considerations and sustainability measures may be charting the course for many organizations. Sustainable travel priorities are changing as many companies are no longer just measuring suppliers’ impact efforts; they are making business decisions based on them. This creates an opportunity for travel providers who understand which metrics matter most. Those who are willing to be transparent and adaptable can help ensure a smooth trajectory,” said Eileen Crowley, U.S. transportation, hospitality and services leader, Deloitte.
