{"id":64668,"date":"2024-12-06T19:30:40","date_gmt":"2024-12-06T19:30:40","guid":{"rendered":"https:\/\/reedmackay.com\/?p=64668"},"modified":"2024-12-06T19:32:22","modified_gmt":"2024-12-06T19:32:22","slug":"plan-your-2025-business-travel-budget-now-2","status":"publish","type":"post","link":"https:\/\/reedmackay.com\/us\/plan-your-2025-business-travel-budget-now-2","title":{"rendered":"Plan your 2025 business travel budget now"},"content":{"rendered":"\n

Business travel is expected to soar in 2025, with 42% of companies forecast to spend more than in 2024<\/a>. Despite this, pressure remains on travel managers to control spending as global business travel costs are projects to experience modest increases in 2025<\/a>. <\/p>\n\n\n\n

Can planning ahead deliver cost savings and added value for corporate travel budgets?<\/p>\n\n\n\n

According to our latest data showcasing significant trends across the legal industry\u2019s travel bookings,<\/a> the median lead time for international bookings reached its highest point in Q3 2023, at 53 days. This data reflects the industry\u2019s commitment to securing cost savings through advanced planning.<\/p>\n\n\n\n

Find the best airfares<\/h3>\n\n\n\n

Global airfare prices are set to rise modestly in 2025, with the average fare expected to increase by 0.6% to $705<\/a><\/p>\n\n\n\n

Reed & Mackay Global Fares Pricing Specialist Jo Shilling isn\u2019t surprised by this increase. \u201cAirline costs, especially for fuel and labor, have risen over the past few years and I expect this to be reflected in short-term pricing,\u201d Shilling says. \u201cNevertheless, everything feels more stable now, possibly due to increased airline capacity and cooling leisure demand after several busy post-COVID years.”<\/p>\n\n\n\n

Regional fares may also vary. \u201cThe instability we\u2019ve seen in the airline industry will impact the US more aggressively, so a steeper rise in this market seems reasonable,\u201d Shilling adds.<\/p>\n\n\n\n

However, the industry remains sensitive to factors such as geopolitical tensions, inflationary pressures, and ESG concerns<\/a>. \u201cWe are seeing longer flight routes taken to avoid certain airspaces, which impacts both flight duration and fuel use. We\u2019ve also seen an increase in fuel-related taxes, which fluctuate during times of global uncertainty,\u201d Shilling says.<\/p>\n\n\n\n

\"\"
The US will be most affected by the recent instability in the global airline industry.<\/figcaption><\/figure>\n\n\n\n

So, with a more positive outlook on fares, why should travel managers still plan their travel budgets in advance? Shilling highlights that booking corporate travel flights further ahead can provide value and enhance business efficiency.<\/a><\/p>\n\n\n\n

\u201cWhile airlines\u2019 advance purchase fares don\u2019t offer the same flexibility as regular corporate fares, they can offer huge savings,\u201d Shilling explains. And you can book 11 months in advance, for most airlines\u201d she says. \u201cSo, if an organization is booking for conferences or meetings where dates are set, it makes sense to book early. This approach not only saves costs but removes the worry of availability for key flights at the right times, all within budget. Additionally, preferred seats for travelers are easier to secure.\u201d<\/p>\n\n\n\n

Careful planning also helps if unexpected travel arises, allowing for spare budget funds to cover last-minute needs. Shilling also notes that advance budgeting can aid with \u201ctrip-batching\u201d or combining multiple meetings into one trip. This approach can help manage costs, support sustainability goals, and promote traveler wellbeing.<\/p>\n\n\n\n

Find the best hotel rates<\/h3>\n\n\n\n

Global hotel rates are projected to rise in 2025, with the average daily rate forecast to increase by 1.9% to $165<\/a>.<\/p>\n\n\n\n

\u201cAs we move into 2025, I predict a continued upward trend in hotel rates, particularly in key corporate locations and during peak travel seasons,\u201d Reed & Mackay Director of Lodging Partnerships Tanya Whitney says.<\/p>\n\n\n\n

\"\"
Global hotel rates will increase in 2025.<\/figcaption><\/figure>\n\n\n\n

Sixty-eight per cent of respondents to the 2024 BTN Annual Hotel Survey also anticipate their corporate hotel rates for 2025 will increase<\/a>. One of the reasons? \u201cInflation will continue to impact operational costs for hotels, from staffing to utilities and supplies,\u201d Whitney explains. \u201cSo far, a 5% increase seems typical in 2025 rate negotiations.<\/p>\n\n\n\n

\u201cAdditionally, we\u2019re seeing more last-room availability (LRA) charges, along with an increase in non-LRA for fixed client-negotiated rates. When combined with dynamic pricing, it is difficult for corporates to maintain stable rates, often resulting in higher prices during peak periods.\u201d<\/p>\n\n\n\n

Reed & Mackay clients benefit from the Navan Lodging Collection Hotel Program, providing a wide range of content and competitive rates. This program ensures clients have relevant choices aligned with their needs and travel policies.<\/p>\n\n\n\n

Embracing future hotel trends<\/h3>\n\n\n\n

While large hotel chains remain popular with corporate travelers, demand for boutique and smaller hotels is growing. \u201cMore travelers are seeking unique experiences, viewing rooms as personalized retreats,\u201d Whitney says. \u201cVIP corporate travelers are increasingly choosing luxury boutique hotels for their personalized service and privacy, enabling them to relax after a long day while being productive.\u201d<\/p>\n\n\n\n

Technology developments, especially AI, will continue to transform hotel operations and shape guest experiences. \u201cInvestments in technology, such as contactless check-in and mobile room keys, will enhance the guest experience,\u201d Whitney adds.<\/p>\n\n\n\n

Finally, sustainability remains a priority for travelers. Hotels investing in eco-friendly practices may command higher rates due to their appeal to environmentally conscious corporate clients. So, if companies can plan accommodation further in advance, it could be a helpful way to incorporate evolving choices and manage budgets more effectively.<\/p>\n\n\n\n

Get in touch<\/strong><\/p>\n\n\n\n

Mail hellous@reedmackay.com<\/a> to discuss all of your travel and event management needs.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Business travel is expected to soar in 2025, with 42% of companies forecast to spend more than in 2024. Despite this, pressure remains on travel managers to control spending as global business travel costs are projects to experience modest increases in 2025. Can planning ahead deliver cost savings and added value for corporate travel budgets?… Read More »Plan your 2025 business travel budget now<\/span><\/a><\/p>\n","protected":false},"author":39,"featured_media":64294,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[121],"tags":[597,738,145],"class_list":["post-64668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-budget","tag-business-travel","tag-cost-saving"],"yoast_head":"\nPlan your 2025 business travel budget now | Reed & Mackay<\/title>\n<meta name=\"description\" content=\"Business travel is set to soar in 2025, with 42% of companies forecast to spend more than in 2024. 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