For the leaders of some travel management companies, being ready has become standard operating procedure. The success behind the process comes from consistently assessing the industry landscape so that there’s no getting caught off guard when things shift, e.g., a major M&A or when a new category of business strategy, such as AI, emerges.
It’s no surprise that the latter is among the key “top-of-mind” topics occupying the brain cells of industry executives today; it’s got a strong grip on the movers and shakers in most other industries as well. Closer to home, however, well-placed concerns for cost control, NDC adoption, building solid generational relationships, even what impact sustainability goals will continue to have are also all in the brainstorming queue.
Working the ABCs of AI
“One of the most significant drivers of business travel in the year ahead will be the continued evolution and integration of AI across the travel ecosystem,” says Billy McDonough, president of the Americas for FCM Travel. “We’re already seeing how AI is transforming everything from trip planning and policy compliance to in-trip support and post-travel analytics. But the future of business travel lies in intelligent, anticipatory technology that empowers both travelers and travel managers,” McDonough predicts.
Keeping the end customer in focus is of paramount importance when integrating AI into the delivery process, according to several executives. Teri Miller, executive vice president, Global Client Team, BCD, notes, “We envision AI shaping the future of business travel and we remain focused on how we use AI to enhance the traveler experience.”
Miller says BCD will continue to integrate AI into its core technology to elevate the solutions it delivers and continue to offer solutions through secure, vetted partnerships. “For example, with the traveler experience, we are focused on how to make the process more seamless with partnerships like SkyLink that allow users to book an entire trip without leaving their enterprise chat platform,” she says.
For Tim Wagner, senior vice president, global supply and operations, HRS, AI’s momentum is indisputable. “And that is true for business travelers as well, making the experience more personalized, predictive and seamless,” he says. “Travelers expect AI-driven booking tools to anticipate their needs – from suggesting the optimal hotel based on preferences and ESG ratings, to streamlining bookings and expense reporting.”
Wagner notes multiple factors are brought to bear, in what he says is typically a calibrated algorithm that melds both personal preferences and history along with policy-driven scenarios. “And once the trip is concluded, AI features are gradually being baked in to expense reporting, ensuring the right figures are in the right fields. Such precise alignment can expedite reimbursement to travelers while giving corporate back offices more transparency on all the cost elements tied to the trip,” he explains.
Charlie Sultan, president of Concur Travel at SAP Concur, agrees AI is redefining business travel, making it “faster, smarter and more intuitive” and the company has embedded AI throughout the travel and expense journey. “These advanced solutions move us closer to a world where travel and expenses practically manage themselves, delivering real-time insights and automation that enhance the traveler experience and drive program efficiency,” says Sultan.
Corporate Travel Management’s chief
executive officer for North America,
Anita Salvatore, already is seeing tangible efficiency gains, with AI automating routine tasks, surfacing relevant content faster and guiding travelers toward the best choices within policy and budget. “At the same time, AI is making corporate travel more intuitive and integrated into the tools people already use every day, whether that’s Microsoft Teams or mobile platforms,” Salvatore adds, suggesting the future of travel booking is “omnichannel,” which will be seamlessly integrated into the tools and platforms already in use. According to survey data from GBTA’s recent Business Travel Index Outlook Annual Global Report and Forecast, expense systems are common, with 67 percent of respondents using them, although “many cite time-consuming processes and delays.” Meanwhile, the research noted the “comfort with AI booking tools is growing,” especially in Asia Pacific, where 78 percent of business travelers are comfortable using such tools.
While not exactly contrarian, a pair of executives cited some considerations they keep in mind regarding the technology. “There’s no doubt that AI is here to stay, but we believe it delivers the best value when paired with humans in the loop,” says Christal Bemont, CEO of Direct Travel. “AI should be used to augment jobs and experiences but humans are still necessary to ensure that everything runs smoothly.” Bemont says that the combination of AI and humans is a principal the company will continue to stand by as the industry innovates and evolves.
“AI is everywhere right now, and too many companies feel they have to claim everything they do is powered by it,” observes Greeley Koch, managing director of 490 Consulting and advisor to Acquis Consulting. “What can’t be forgotten is the outcome and how AI actually improves the traveler experience and delivers real benefits. We’re helping clients build practical AI strategies that fit their budgets, drive measurable results and move beyond the buzzwords to real impact.”
Reining in the Budgets
Research indicates companies large and small are focused intently on budgets to tamp down rising travel costs, while TMCs are strategizing to manage such costs so the process is mutually beneficial. “Managing travel costs has always been a core priority for customers; this is not new. What has evolved is how TMCs help them achieve it,” says CTM’s Salvatore. “Whether prices are rising or not, every organization wants to maximize the value of its travel budget.”
CTM’s role is to provide the strategic expertise, technology and guardrails that make that possible, she explains. “Through tailored travel policies configured in our online booking tool and data insights, we help to ensure every booking decision aligns with a customer’s goals, whether that’s savings, sustainability, traveler well-being, or all three,” says Salvatore. “We focus on optimizing the entire travel program for long-term value. That’s where the real return on investment comes from.”
Miller cites proprietary research that shows cost control remains the top priority in today’s travel programs, noting BCD delivers a “full universe of content” clients need to meet their savings and sustain ability targets.
Since the majority of TMCs use in-house research to keep proactive industry players aware of traveler sentiment, when it comes to cost control, transparency is key, according to John Van den Heuvel, president of Corporate Traveler USA. “We leverage real-time data and reporting to uncover savings opportunities across every area of travel spend,” he explains. “It’s about being proactive, not reactive, and helping customers find the right balance between cost control and traveler experience.”
Another large part of keeping costs in line is procurement, according to Wagner. “By practicing convergence and maximizing the value of their spend across segments, companies often don’t have to reduce the quality of their preferred properties,” he says, stressing the actual utilization of the negotiated program is an important aspect.
“The first step is to understand leakage and the reasons for it (for example, by analyzing expense or payment data), before crafting strategies to increase channel compliance. Travelers can only make full use of the procured program when they use the proper managed channel. And one of the downstream benefits is that a better-managed program also means higher leverage in negotiations with chain and hotel partners.”
Sultan offers a wry insight of just how tight the travel dollar can be squeezed at times. “Travelers are increasingly mindful of value and cost. More than eight out of ten business travelers take steps to save money or stretch their budgets while on the road. These steps include choosing cheaper meals to stay within per diem limits, preparing their own meals instead of dining out and bringing snacks from home,” he says.
Sustainability Still Sizzling?
When it comes to top-of-mind concerns that also toggle to cost, BTE asked executives whether sustainability will still be the hot topic in 2026, or if it’s being overshadowed by the effects of inflation, job cuts and other headwinds. Responses came back a bit mixed.
According to HRS’ Wagner, while sustainability is no longer optional since both companies and travelers are asking for tools that make responsible choices easy, “there is no question that elements such as fluid economic climates, geopolitical fallout and changing travel program priorities can get in the way of advancing sustainability-related initiatives.”
He stressed, however, that companies committed to reducing their carbon footprint are making headway. Research released in November in the company’s “State of Sustainability in Corporate Lodging” report showed its clients achieved an average 22 percent reduction in emissions and 5 percent ADR savings in their RFP programs, which Wagner feels proves sustainability and cost efficiency can be achieved simultaneously.
“Navigating economic or political headwinds is always going to be something companies have to deal with so it’s really about prioritizing efforts that are important to the success of your business and the happiness of business travelers,” suggests Direct Travel’s Bemont. “To us, that includes sustainability because we know that it’s not only our goal, but our responsibility to lead the way in promoting positive change.” The CEO said she expects to see continued momentum around sustainability and global partnerships as organizations prioritize “smarter, more-connected” travel programs.
In this same vein, CTM’s Salvatore emphasizes sustainability remains a topic for customers with global exposure and for businesses that are more mature in their sustainability journey. For these customers, sustainability and cost might not be an either/or situation, she says. “They tend to have business cases that support this directive, whether that’s because it opens the doors to more customer groups, it is a regulatory requirement, or they have found they can drive efficiencies through strong policy directives. This is where there is the most meaningful impact, rather than sustainability for the sake of it,” she observes.
BCD’s Miller says the company’s proprietary research shows “sustainability has dropped a few ranks in travel managers’ priorities this year. However, it remains firmly on the agenda – both to support overall company sustainability goals and to ensure compliance with new regulations.” She points to rules such as the Corporate Sustainability Reporting Directive (CSRD) that requires eligible companies to report on their ESG performance using a mandatory set of standards called the European Sustainability Reporting Standards.
“We’re making sustainability simple, transparent and part of everyday travel management,” says Miller. “We’re helping companies move away from sustainability pledges to credible and high-quality actions and reporting.”
What’s the Tea, TMCs?
Business Travel Executive got to “go behind the curtain” a bit with several of the executives who revealed the top-three most-talked about topics at their respective companies that they see influencing their companies this year.
At CTM, Salvatore cites AI and automation, NDC adoption and content fragmentation. “AI and automation are driving major advancements in how CTM delivers value, powering predictive servicing, real-time insights and more personalized traveler experiences while reducing manual effort and cost,” says Salvatore. “NDC continues to reshape airline distribution. Content fragmentation, the growing challenge of sourcing and consolidating air, hotel and ground inventory across multiple platforms, remains a top priority.”
Miller points to a continued focus on a client-centric philosophy at BCD. “Travel buyers should have the freedom and flexibility to shape and future-fit their travel programs, recognizing that every program is unique.” She adds there also is ongoing investment in digital innovation, including the expansion of strategic partnerships to deliver more AI-driven solutions that enhance the traveler experience. Plus, there’s continuing roll-out of NDC content.
At Concur Travel, Sultan says, “We’re focused on embedding AI throughout the travel and expense process, enabling the expense report that practically manages itself, and delivering a consumer-grade user experience.” This focus guided the company’s decision to enter a strategic alliance with Amex GBT. “By building for the future together, we can offer customers an even more-comprehensive solution that delivers end-to-end value across travel, expense, payments and servicing,” suggests Sultan.
“The three biggest topics we’re talking about right now are transformation, journey orchestration and intrapreneurship,” says 490 Consulting’s Koch. “Transformation, because the travel industry is reinventing how it connects people, purpose and performance; journey orchestration, because technology is finally linking booking, payment and expense into a seamless experience for both the traveler and the company; and intrapreneurship, because the most successful travel managers today are thinking like innovators, driving change from within to build programs that are smarter, more human and ready for the future.”
