Business travel has increased in 2024 with in-person connections and expansion into new markets as priorities despite surging travel costs.
A new Business Travel Barometer white paper from corporate travel management company FCM reveals key trends determining this strategic shift, offering insights for companies looking to optimise their travel strategies for 2025.
One of the most striking trends revealed by the white paper is the rise in business travel spend. Overall, flight expenditure has increased by 53% in 2024 with ticket volume up 54% and average prices climbing although this may be interpreted as a barrier for some.
Bonnie Smith, GM of FCM, says businesses are determined to invest in travel to unlock critical opportunities despite cost pressures.
“This increase in travel and spending is a reflection of how important in-person meetings and relationship building still are," says Smith. "Companies are prepared to manage rising travel costs because they understand the value of maintaining client connections and exploring new market opportunities – something that simply can’t be replicated on a virtual call.”
Businesses are adapting their travel policies in response to these shifting dynamics. With the cost of domestic airfare and hotel stays also on the rise, companies are actively seeking smarter ways to book and save, using everything from loyalty programmes to corporate fare deals.
Key destinations on the global and continental map
The report highlights several important shifts in top international destinations for business travellers between June and August 2024. Johannesburg to London Heathrow continues to be a leading route.
With Atlantic and continental ties strengthening, regional travel is also a significant part of corporate travel. Accra, Nairobi and Lusaka have emerged as key hubs for businesses looking to grow across Africa.
Smith says: “Accra’s rise as a leading destination, alongside popular African routes such as Nairobi and Addis Ababa, shows the business interest South African companies now have across Africa. There’s a real focus on expanding trade here.”
Class preferences: a shift in travel style
The data on class preferences is also insightful. Economic pressures are reflected in booking patterns with economy class experiencing the greatest increase in ticket volume (64%) and only a modest price increase (2.6%). The economy class trend highlights how companies are prioritising cost-effectiveness for their frequent short-haul and regional trips.
Conversely, premium economy class has seen significant fare increases of 100.2% despite a slight rise in ticket volume (2.3%). The growing cost of this class signals rising demand for comfort without the full cost of business class – illustrating that companies prefer to invest in premium experiences where it matters: for longer, strategic business trips.
Smith advises: “Premium economy is the sweet spot, particularly when balancing comfort and performance on strategic trips. While the cost increase may be steep, it’s worth negotiating preferential rates with airlines, especially for key trips that need a bit more relaxation and efficiency in-flight.”
Hotels and ground transport: rising demand drives prices
Hotel spending saw a substantial increase (66%) as organisations ramped up their bookings, signalling greater demand for long stays and higher-end accommodation. The biggest challenge for travel managers now is negotiating corporate hotel rates and leveraging loyalty programmes to manage these rising costs effectively.
Meanwhile, car rentals have become a more frequent part of corporate travel (bookings are up 66%) although daily rental rates fell slightly by 6.7%. The increased frequency of car rentals highlights focus on flexibility, particularly for regional and cross-country business travel where ground mobility is critical.
As businesses enter the new financial year, travel is more crucial than ever before, says Smith. Strategic investments in international links and intra-African travel will likely continue to grow, making it essential for companies to optimise their travel spend without compromising on quality or efficiency.
