news 
Travel and Expense Trends: 4 Predictions For 2025
As the world continues to evolve at a rapid pace, businesses must adapt quickly to stay ahead of the curve. In the realm of travel and expense (T&E), this means embracing innovative technologies, shifting priorities, and rethinking traditional approaches. At SAP Concur, we’ve crunched the numbers and are forecasting four key trends that will shape T&E in 2025.
1. Slowing inflation will lead to increased value from travel spend
In 2023, soaring inflation pushed travel expenses beyond pre-pandemic levels, resulting in higher costs for fewer trips. As inflation slows, businesses can expect to receive more value from their T&E budgets. In light of this, it’s crucial to prioritize offering streamlined booking experiences and personalized services to retain workforce productivity and satisfaction.
2. Trust in AI for travel and spend management will grow
The impact of AI on T&E is undeniable. We predict that AI will continue to revolutionize the industry by automating tasks such as transaction validation, fraud detection, and spending pattern recognition. This technology can also enhance booking experiences with personalized itinerary recommendations based on traveler preferences and organizational policies.
While some travelers may be skeptical about AI’s role in managing bookings or submitting expense reports, we anticipate that 95% of business travelers will still be open to using AI as a valuable assistant.
3. TMC consolidation and NDC adoption will continue
As travel management companies (TMCs) consolidate their operations, they will gain greater negotiating power with suppliers. This could ultimately result in reduced costs and better deals for customers. Additionally, the trend of content fragmentation will slow as airlines and travelers alike come to realize the benefits of New Distribution Capability (NDC), including personalized service, bundling, and continuous pricing.
To stay ahead of these changes, it’s essential that your T&E system is compatible with any TMC and provides diverse travel options. A flexible platform will enable you to adapt to shifting supplier landscapes and maximize savings.
4. Finance leaders will collaborate across the C-suite
In 2025, we anticipate a significant shift in finance leadership, as they take on an increasingly critical role in implementing emerging technologies. CFOs will partner with IT and security teams to ensure the safe and efficient integration of new innovations, prioritizing efficiency, compliance, and cost control.
As travel volumes increase, organizations will face mounting pressure to meet sustainability regulations. Finance will play a crucial part in integrating data across functions to eliminate silos, improve efficiency, and strengthen infrastructure against rising cybersecurity threats.
Source: http://www.forbes.com
