6 smart ways to reduce business travel cost in 2025
In a recent Coporate Traveller online research poll from our webinar, of 300+ respondents, 63% clearly called out travel costs as a major pain point. With supply chains still running tight, operating costs continuing to climb, and global uncertainties affecting travel routes, managing business travel costs in 2025 requires a strategic approach.
Here's how Kiwi businesses can stay ahead of the curve and keep their travel budgets in check while maintaining productive business travel.
1. Plan your travel well in advance
Gone are the days when you could book a last-minute business trip to Sydney without breaking the bank. Early planning is now crucial for cost control.
The cheapest airfares are typically available at least two weeks from the travel date but booking as early as six months in advance yields the most significant cost savings.
Pro tips:
- Set up a quarterly travel planning system
- Book domestic flights at least 3 weeks ahead
- Plan international travel 2-3 months out
- Use flexible booking options when available
- Consider bulk-buying flights for regular routes
2. Avoid key capital cities when possible
Looking at the numbers from Felicity Burke, FCM Consulting APAC, gateway cities are running hot. Auckland sits at 65% occupancy, and Wellington's not far behind. That means room rates aren't doing anyone any favours.
Major cities often mean major business travel expenses. With air travel costs and hotel rates in key cities continuing to rise, consider these alternatives:
- Consider Hamilton or Tauranga for North Island meets
- Book accommodation slightly outside city centres
- Consider regional airports for better rates
- Mix up your meeting locations
- Combine multiple meetings in one area to maximise trip value
3. Understand different supplier options
Seat capacity forecasts from Felicity Burke, FCM Consulting APAC, show positive growth (especially in H1-2025), so you have more options than you might think.
But don't put all your eggs in one basket. Having multiple supplier relationships gives you flexibility and bargaining power. Plus, teaming up with an elite travel management company is one of the best ways to enjoy those benefits.
Key considerations:
- Compare rates across multiple airlines
- Mix and match carriers for better deals
- Look into regional accommodation providers
- Consider alternative transport options
- Use mid-tier hotel brands with good amenities
During a merger, Dicker Data, NZ's leading tech distributor, recognised the benefits of a diverse supplier strategy. By adopting a strong travel program with multiple suppliers, they lowered booking fees and enhanced compliance with travel policies. A significant win was establishing SmartStay rates as a preferred accommodation option, resulting in better rates and hotel benefits over time.
4. Optimise tools and technology
The future of AI and technological advancement in travel is here. Airlines are investing heavily in travel tech and expense management software, and you should too.
The right travel management platform can significantly reduce direct costs and administrative overhead.
Technology must-haves:
- Smart online booking tool
- Automated expense tracking
- Mobile travel app
- Policy compliance automation
- Real-time reporting dashboards
- Exclusive flights, hotel and car rates
- Integration with your existing tools
Here's the good news: YOUR.CT brings all these features together in one platform, so you don't need to juggle multiple systems. Our tech solution was built specifically for Kiwi businesses, taking the heavy lifting out of travel management.
5. Track your travellers and have ready support
With airline average paid fares in domestic markets stabilising (finally!), now's the time to get smart about tracking and support. Keeping tabs on your travelling team isn't just about the duty of care but also cost management.
Must-haves:
- Implement real-time traveller tracking
- Set up 24/7 support systems
- Have clear emergency procedures
- Monitor booking patterns
- Quick response systems for disruptions
- Maintain communication channels
6. Adjust your travel policy for cost management and sustainable choices
Demand in some capital cities has slowed (giving us a minor ADR rise of $6 from Q2-Q3 2024) as noted by Felicity Burke, FCM Consulting APAC, but that doesn't mean we can rest on our laurels. Modern travel policies need to balance cost control with sustainability and traveller well-being.
Policy adjustments to consider:
- Include carbon offset options
- Set clear spending limits on travel-related expenses
- Specify approved airlines, hotels, and car rental companies
- Define approval workflows
- Incorporate sustainable travel options
- Update allowances based on location
Encourage employees to stick to the rules to help cut costs and maximise your corporate travel budget.
Need help creating a travel policy that works? Download our travel questions template to guide your policy's first draft. Then, connect directly with one of our travel specialists to help you roll the policy out to your business.
