There’s no denying the enormous impact of the pandemic caused by COVID-19 on business travel. But fortunately, that’s history. In the years since, the move toward globalism has picked up renewed steam, bringing new opportunities and challenges for corporate travel. As businesses seek expanded opportunities in international markets, the result has been a steady climb in the number of business travelers spanning the globe. While that’s good news in many ways, it can also mean travel buyers are looking for solutions in what can be a fragmented and confusing air travel picture.
“Global air travel has aggressively recovered as the pandemic recedes, with passenger numbers approaching or surpassing pre-pandemic levels,” says Gabe Rizzi, president of Altour. He notes that the International Air Transport Association reports significant increases in passenger traffic, indicating a positive industry recovery. In addition, Airports Council International World estimates global passenger traffic will soon reach approximately 104 percent of 2019 levels, reflecting substantial year-on-year growth.
Among other factors, Rizzi attributes a renewed focus on the timeless value of in-person relationships, as companies balance the need for face-to-face interactions against the reality of rising costs and environmental considerations.
Jason Kramer, global senior air consultant for FCM Consulting, agrees that the current state of global business travel is strong. “The industry as a whole has surpassed pre-pandemic levels and we’re at a point now where it’s actually better to begin using more standard year-over-year comparisons, rather than compare them to 2019 figures,” he says.
As the global economy has stabilized, traditional travel habits have returned. Kramer expects this trend to continue in 2025, with FCM forecasting that in the first half of the year, the top global corporate airlines are expected to see a five percent increase from the same period the previous year.
Of particular note is the way airlines are responding with a surge in new international routes and direct connections, with more on the way, according to John Balloch, chief partnership officer global air and GDS for Corporate Travel Management. “Airlines are focused on improving inflight products to stay competitive, so the industry is in a healthy place right now and we expect significant growth over the next five years.”
As just one example, United recently announced its largest international expansion in history with service to eight new cities. They include Ulaanbaatar, Mongolia; Kaohsiung, Taiwan; Nuuk, Greenland; Palermo, Italy; Bilbao, Spain; Madeira Island and Faro, Portugal, and Dakar, Senegal.
Contributing to the rise of new and underserved routes has been the development of long-range narrow-body aircraft such as the A321LR, A321XLR, and 737 MAX. “These planes make long-distance, point-to-point routes more sustainable and have opened great opportunities for airlines like United, Aer Lingus, JetBlue, and Icelandair,” Balloch says. “It’s a game-changer for business travel connectivity.”
At the same time, strategic partnerships are shaking things up around the globe, Balloch adds. He notes that airlines are stepping outside traditional alliance boundaries when it benefits their customers and growth plans.
Expanding Opportunities
With the recovery from COVID-19 taking longer in some parts of the world, progress in one location bodes well for everyone. That’s the case with progress in Asia, according to Mike Eggleton, director of research and intelligence for BCD.
“While the delay in Asia’s recovery ultimately held back the global recovery in international air travel, it looks set to drive future growth just as demand in other regions loses momentum,” he says. He also cites developments with airline yields and corporate deals, with yields coming under pressure. “Airlines worldwide face declining yields due to slowing post-pandemic demand and increased market capacity, with North American, Asian, and European carriers all impacted,” he notes. “This yield drop, particularly pronounced in Asia, has pressured operating margins, which have fallen year-over-year for four consecutive quarters.”
Given such change, Eggleton looks for the negotiating power of travel buyers to improve. “As airlines ramp up schedules beyond pre-pandemic levels, there is a softening leisure demand. This imbalance between demand and supply will intensify competition,” he says. “As they contend with lower yields, airlines are more actively seeking to attract and develop corporate business, putting travel buyers in a stronger position to renegotiate certain deals.”
The ongoing adoption of NDC will continue as another major consideration for travel managers, according to Kramer. “Modern air retailing is challenging traditional distribution models and whether there is cost-savings benefit between channels,” he says. That’s forcing travel managers to evaluate what fares and channels travelers have access to, and by what suppliers. “While most suppliers are moving at varying paces to bring forward modern retailing to managed travel and its travelers, the movement is still relatively in its infancy – here in the US particularly.”
Domestically, the increase in international routes to Asia and Europe is another key trend, Balloch notes “These connections aren’t just about leisure – they’re opening doors for corporate travel and new business opportunities in these regions.”
Of course, no development may bring more potential impact than the growing integration of artificial intelligence. “AI is revolutionizing business travel by enhancing efficiency and personalization,” Rizzi explains. “Advanced AI tools are streamlining travel management processes, offering tailored itineraries, and optimizing cost management.” As an example, he points to the use of AI-driven virtual travel agents that can customize trips based on company policies and employee preferences, leading to more efficient planning and improved traveler satisfaction. That was the impetus behind the launch of Altour Intelligence, an AI suite of five AI-powered products, Rizzi says.
Not surprisingly, environmental concerns will continue to be a priority. “Sustainability has become a central concern in corporate travel,” Rizzi notes. “Companies are increasingly prioritizing eco-friendly travel options to meet environmental goals and respond to stakeholder expectations, but still are reluctant to pay more for them in most cases.” He says this includes selecting airlines that utilize sustainable aviation fuels and implementing travel policies that reduce carbon footprints. Travel managers are also leveraging technology to monitor and report on travel-related emissions, facilitating more sustainable decision-making.
Kramer notes that while the merits of more sustainable travel are well documented, obstacles remain for travel managers across the globe, including the ability to balance sustainability goals with standard measurable metrics and travelers adopting sustainable booking behaviors.
“In many cases, managers have been asked to identify where travel can be reduced or eliminated, but with the backdrop of company revenue targets that force travelers on the road to sell,” he says. “Another challenge is adopting policy to mandate or promote more sustainable travel in the face of travelers struggling to amend their own behaviors.”
Bumpy Ride Ahead?
Going forward, travel managers will need both diligence and flexibility in effectively managing global travel, building new partnerships and staying on top of changing technology.
Rizzi recommends embracing technology and innovation. “Leverage AI to streamline booking processes, optimize travel itineraries, and enforce compliance with corporate policies,” he says. “Tools that offer predictive analytics can help anticipate trends and reduce costs.” It’s also important to ensure travel management systems integrate with HR, expense, and duty-of-care platforms for better data flow and user experience. The same goes for staying informed. “Keep an eye on emerging technologies like biometrics for identity verification and blockchain for secure payment and travel document management,” he advises.
The same also applies to information on emerging markets and expanding routes. For instance, Balloch notes that India is set to be a major player in global business travel, with Air India upgrading its inflight cabin products and a steady rollout of new airports and destinations. “With its massive population and rapid economic growth, Indian aviation is likely to be a huge driver of growth and opportunity in the next ten years,” he notes.
Rizzi also suggests cultivating strategic relationships. “Build partnerships with airlines and hospitality providers that align with your organization’s values and long-term goals,” he says. Internally, it’s important to align travel strategies with C-suite priorities, emphasizing cost control, risk management, and ESG goals. And on all fronts, Rizzi concludes, strive to stay current. “Participate in industry forums and networks to stay updated on best practices and innovations.”
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