In today’s fast-moving world, businesses must adapt quickly to new disruptions or risk being left behind. But what does this mean for the travel and expenditure (T&E) landscape? And how will T&E trends affect your organization?
For example, we have already seen new use cases of AI as predictive analytics for expense management starting to simplify travel management and expense reporting. Additionally, in response to power shifts in the travel industry, travel management companies (TMCs) have continued to consolidate.
In 2025, travelers will demand more personalized self-service booking options, along with real-time updates on concerns, safety and health.
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SAP Concur experts expect these trends to continue—if not accelerate—in 2025. In anticipation of the trends that will shape T&E in 2025, here are four key predictions to watch.
Prediction #1: Slowing inflation will increase the likelihood of travel
More for your money
In 2023, inflation pushed travel spending past pre-pandemic levels, with business travel spending expected to reach $1.48 trillion by the end of 2024, according to the Global Business Travel Association. But travel volume didn’t keep up, resulting in higher costs for fewer trips. As inflation slows, companies can expect to get more value from their T&E budgets.
Fulfilling travelers’ expectations
Travelers will demand more personalized self-service booking options, along with real-time updates on concerns, safety and health. Combined business and leisure travel is also on the rise. Companies should offer flexible travel policies to maintain workforce productivity and satisfaction.
Standing forward
To stay ahead, focus on providing simple and personalized booking experiences for employees, with options like loyalty recognition, detailed transportation and hotel information, and real-time travel alerts. Apps should help travelers with everything from passport renewals to real-time updates on political unrest and environmental hazards.
On the back end, bringing T&E to an integrated platform is essential. Separate systems only increase costs and errors, while a unified system improves the user experience and enables smarter budgeting, better negotiations and fewer errors.
Prediction #2: Reliance on generative AI for travel and expense management will grow
Impact of AI on T&E
AI will continue to make waves in T&E management. As finance and travel teams adjust policies to accommodate AI, automation will reduce administrative burdens. AI will increasingly handle tasks such as verifying transactions for compliance, identifying fraud, and detecting spending patterns that would otherwise go unnoticed by humans. Expect smarter audits, less manual expense reports and more time spent on exceptions.
AI will also improve the booking experience, providing personalized itinerary recommendations based on traveler preferences and organizational policies. Generative AI will help predict fares, making pre-trip approvals more accurate, while chatbots will provide real-time travel updates and disruption management.
Two paths for AI
By 2025, finance leaders will embrace AI to improve decision-making, spend forecasting and risk management. Travelers, however, will remain cautiously optimistic about AI. Although the SAP Concur Sixth Annual Global Business Travel Survey found that 95% of business travelers are open to using AI, they will treat it as a “helpful assistant” rather than fully trusting it to manage bookings or to submit expense reports.
Prediction #3: TMC Consolidation Will Continue and NDC Will Benefit Airlines and Travelers
IMC consolidation and content concerns
KPMs will continue to consolidate, gaining more bargaining power with suppliers. This can result in lower costs and better offers for customers. In addition, the trend of content fragmentation will slow down; by 2025, both airlines and business travelers will fully realize the benefits of New Distribution Capability (NDC), including better personalization, packaging and consistent pricing.
Capitalizing on trends
To navigate these changes, make sure your T&E system can work with any TMC and offer a variety of travel options, from hotels to low-cost carriers and rail networks. Flexibility in your travel platform will allow you to adapt to changing supplier landscapes and maximize savings.
Prediction #4: CFOs will collaborate across the C-Suite to implement emerging technologies
The growing influence of finance
Finance’s influence will continue to grow, with CFOs increasingly partnering with IT and security teams to ensure the secure and efficient implementation of new technologies. This includes evaluating investments in AI tools for T&E management to increase efficiency, ensure compliance and improve overall cost control.
Data integration and security
In 2025, finance will play a key role in integrating data across functions to eliminate silos, improving efficiency and security. With cybersecurity risks on the rise, finance will partner with IT to harden infrastructure, minimize exposure, optimize costs and improve resilience.
Endurance
As travel volumes increase, organizations will face more pressure to meet sustainability regulations. The funding will help drive investment in technology solutions that prioritize compliance, such as carbon tracking tools or incentives for sustainable travel.
Cooperation for growth
Finance leaders will work with HR, IT and engineering teams to identify opportunities for business expansion, process automation and innovation. This cross-functional collaboration will help ensure that technology investments are aligned with financial and non-financial goals, such as ESG and talent recruitment initiatives.
A positive outlook for T&E
While no prediction is guaranteed, the future of T&E looks promising. Expect advances in AI, system integration, variety of travel options, and cross-functional collaboration. These innovations will not only help you manage travel and expenses more effectively, but also move your business forward faster.
