Business travel costs will increase in 2025

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Travel News

Bonnie Smith,Gm,Fcm

With business class fares jumping and flights packed, travel managers are facing tough conversations about rising costs.

Just when you thought your travel budget was sorted for 2025, new data from the travel consulting company, FCM’s Business Travel Report might have you reaching for your calculator—and here's why. "Our data tells two stories," says Bonnie Smith, GM of FCM South Africa."Yes, travel is getting more expensive, but it's also becoming more predictable. Travel managers who book ahead are saving on airfares and getting better hotel rates.

The average room rate is up in North America , South America , and Europe , with a gentle softening of prices in the Middle East/Africa, Asia, and Australia. While global inflation is cooling off, some spots like Brazil and India are still seeing prices climb, the good news is that the rand is working harder in some markets than others.Airlines are promising more seats for 2025 ; however, more seats don't automatically mean cheaper fares.

"Your TMC’s AI tools can analyse your travel patterns and suggest cost-saving opportunities you might miss, like booking premium economy instead of business class on shorter routes where the price difference outweighs the benefits." She also emphasises the power of consolidated buying."A good TMC brings negotiating power you simply can't match alone. We're booking thousands of room nights and flights, which means better rates and more flexible terms for our clients.

"Success in 2025 isn't just about managing costs—it's about making business travel work harder for your company. Whether it’s through better planning, smarter technology, or having the right support team in your corner, you’ll achieve maximum value from every trip."

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