On paper, the outlook is healthy. The Global Business Travel Association (GBTA) reported a 10% increase in business travel spend in 2024, forecasting annual compound growth of 6.1% through to 2029. In reality, however, spending remains 14% below pre-pandemic levels.
“Like-for-like budgets are up, but we’re travelling less and buying fewer things,” says Charles Lockwood, a financial controller at an international property firm. “We’re only just keeping up with inflation, but business travel is one of the few areas we can control when we’re hit with global economic pressure, so everything gets scrutinised.”
In the creative industries, the squeeze is just as acute. Iain Wiggins, an executive producer at an advertising agency, sets T&E budgets for shoots. “Getting less for more is the expectation,” he says.
“It now costs the same to have eight people on a shoot that used to have a dozen people. It really limits what we can do.”
To make budgets stretch, he’s found a loophole: scheduling travel outside peak periods. “Flights and hotels that cost hundreds during busy seasons can cost much less in winter,” he says. This solution isn’t problem-free, however, since poor weather conditions don’t usually make for glamorous backdrops.
However, the squeeze is not uniform, as some industries are hit harder than others. “T&E budgets are closely linked to industry sectors,” says Paul Dear, SAP Concur’s regional vice president for Supplier Services EMEA.
“Retail, for example, is tightening its belts, whereas energy or mining companies are seeing growth and, hence, an increase in travel budget. I think the biggest talking point between travel buyers is measuring the return on investment of travel.”
