In today’s rapidly evolving business landscape, staying ahead of the curve isn’t just a competitive advantage—it’s a necessity. Every industry is feeling the impact of digital transformation, and the travel and expense (T&E) sector and it’s trends are no exception. From global economic shifts to groundbreaking technological innovations, the T&E landscape is undergoing a seismic shift that organizations must navigate to remain relevant and resilient.

For businesses, this means more than just keeping up; it means embracing the changes shaping the future of how employees travel, spend, and manage their expenses. Companies need to rethink their strategies to address emerging challenges and take advantage of new opportunities. But how do these shifts translate into actionable insights for your organization? And how can you ensure your T&E systems are equipped to handle what’s next?

From the promise of generative AI to the growing emphasis on sustainability, here are the five key predictions that will define the future of T&E and how you can prepare to harness them effectively.

We’re already seeing the ripple effects of transformative trends. Artificial intelligence (AI), for instance, is no longer a buzzword but a real game-changer, simplifying everything from expense management to travel booking through predictive analytics and automation. Meanwhile, consolidation in the travel management industry is reshaping the way companies engage with travel service providers. Travelers themselves are driving change, demanding more personalized, flexible, and efficient solutions that prioritize their safety and well-being.

Working and using a phone while waiting at the departure gate?

In 2025, travelers will demand more personalized, self-service booking options, along with real-time updates for disruptions, safety, and health concerns. SAP Concur experts expect to see these trends continue—if not accelerate—into 2025. In anticipation of the trends shaping T&E in 2025, here are five key predictions to watch.

Prediction #1: Slowing Inflation Will Increase Travel Opportunity

More for your money
In 2023, inflation pushed travel spending beyond pre-pandemic levels, with business travel spending expected to reach $1.48 trillion by the end of 2024, according to the Global Business Travel Association. But travel volume didn’t keep up, resulting in higher costs for fewer trips. As inflation slows, companies can expect to get more value from their T&E budgets.

Meeting traveler expectations
Travelers will demand more personalized, self-service booking options, along with real-time updates for disruptions, safety, and health concerns. Blended business and leisure trips are also on the rise. Companies must offer flexible travel policies to retain workforce productivity and satisfaction.

Staying ahead
To stay ahead, focus on offering streamlined, personalized booking experiences to employees, with options like loyalty recognition, detailed transportation and hotel information, and real-time travel alerts. Apps should help travelers with everything from passport renewals to real-time updates on political unrest and environmental hazards.

On the back end, bringing T&E into one integrated platform is key. Disjointed systems only increase costs and errors, while a unified system enhances the user experience and enables smarter budgeting, better negotiations, and fewer mistakes.

Prediction #2: Trust in Generative AI for Travel and Spend Management Will Grow

AI’s Impact on T&E
AI will continue to make waves in T&E management. As finance and travel teams adjust policies to accommodate AI, automation will reduce the administrative burden. AI will increasingly handle tasks like validating transactions for compliance, identifying fraud, and spotting spending patterns that would go unnoticed by humans. Expect smarter audits, fewer manual expense reports, and more time spent on exceptions.

AI will also enhance the booking experience, offering personalized itinerary recommendations based on traveler preferences and organizational policies. Generative AI will assist in price forecasting, making pre-trip approvals more accurate, while chatbots will provide real-time trip updates and disruption management.

Two Paths for AI
By 2025, finance leaders will embrace AI to improve decision-making, forecast spending, and manage risk. Travelers, however, will remain cautiously optimistic about AI. Although the SAP Concur Sixth Annual Global Business Travel Survey found that 95% of business travelers are open to using AI, they’ll approach it as a “handy assistant” rather than fully trusting it to manage bookings or submit expense reports.

Prediction #3: TMC Consolidation Will Continue, and NDC Will Benefit Airlines and Travelers

TMC consolidation and content concerns
TMCs will continue to consolidate, gaining more negotiating power with suppliers. This may result in lower costs and better deals for customers. In addition, the trend of content fragmentation will slow; by 2025, both airlines and business travelers will fully realize the benefits of New Distribution Capability (NDC), including better personalization, bundling, and continuous pricing.

Capitalizing on trends
To navigate these changes, ensure your T&E system can work with any TMC and offer diverse travel options, from hotels to low-cost carriers and rail networks. Flexibility in your travel platform will allow you to adapt to shifting supplier landscapes and maximize savings.

Prediction #4: Finance Leaders Will Collaborate Across the C-Suite to Implement Emerging Technologies

Finance’s growing impact
Finance’s influence will continue to grow, with CFOs increasingly partnering with IT and security teams to ensure the safe, efficient implementation of new technologies. This includes assessing investments in AI tools for T&E management to increase efficiency, ensure compliance, and improve overall cost control.

Data integration and security
In 2025, finance will play a key role in integrating data across functions to eliminate silos, improving efficiency and security. With cybersecurity risks on the rise, finance will collaborate with IT to strengthen infrastructure, minimize exposure, optimize costs, and improve resiliency.

Sustainability
As travel volumes increase, organizations will face more pressure to meet sustainability regulations. Finance will help guide investments in technology solutions that prioritize compliance, such as tools for carbon tracking or incentives for sustainable travel.

Collaboration for growth
Finance leaders will work with HR, IT, and engineering teams to identify opportunities for business expansion, process automation, and innovation. This cross-functional collaboration will help ensure tech investments align with both financial and non-financial goals, such as ESG and talent recruitment initiatives.

Prediction #5: Sustainability Will Drive Innovation in T&E

Balancing travel and sustainability goals
With the increasing focus on environmental sustainability, companies will find new ways to reduce their travel carbon footprint without compromising productivity. This includes promoting virtual meetings when possible and implementing tools for carbon tracking and reporting.

Innovative travel policies
Travel programs will incorporate rewards for sustainable choices, such as using public transportation, staying at eco-friendly accommodations, and opting for direct flights to minimize emissions. Employers will also encourage the use of hybrid and electric vehicles in ground transportation.

Technology as a sustainability enabler
Advanced analytics and AI tools will play a key role in creating actionable insights for more sustainable travel planning. From tracking emissions to providing eco-friendly travel options, these technologies will empower organizations to make smarter decisions that align with sustainability goals.

Final thoughts