Global business travel trends for 2025: What's on the horizon?

Let's talk about what's coming up for Kiwi businesses in 2025. Our latest data shows some pretty interesting shifts in the travel industry that you'll want to keep an eye on.

Whether you're managing travel arrangements for your team or just trying to keep your travel budgets in check, here's what you need to know. 

2025 business travel trends

1. Air travel performance and pricing trends

According to Felicity Burke, FCM Consulting APAC, global airlines achieved a significant 86.2% passenger load factor in August 2024, thanks to both corporate travellers and holiday makers filling up planes during the northern hemisphere summer.

For Kiwi businesses sending staff overseas, this means you'll want to book well ahead, especially for those important trans-Tasman routes and Asia connections.

Cost considerations are favourable, says Felicity, with economy airfares across major city pairs averaging $507, representing a $16 decrease from the previous year.

Global hotel rates have remained relatively stable, averaging $186 per night, just marginally lower than 2023 figures. 

2. Market outlook and capacity forecasts

Looking ahead, airline seat capacity is projected to increase by 2% in the first half of 2025 says Felicity Burke, FCM Consulting APAC. However, economic uncertainty has led analysts to hold back on travel forecasts for late 2024 and early 2025, suggesting New Zealand businesses should maintain flexible travel planning approaches. 

3. Technology and automation developments

The travel industry continues to embrace automation and iterative technological advancements. This evolution presents opportunities for New Zealand organisations to streamline their travel management processes and enhance efficiency through new digital solutions.

This means smoother booking processes and more personalised business trip experiences for your team members heading overseas. 

4. Evolution of business travel behaviours

Speaking of your frequent flyers, there's a new breed of business traveller emerging: the ultra-sophisticated type.

These switched-on professionals are masters at combining business requirements with leisure travel, something that resonates well with our Kiwi work-life balance philosophy.

5. Revenue streams and additional costs

Felicity Burke, FCM Consulting APAC says that airlines have reported significant growth in ancillary revenue, with a 32.5% increase in 2023. Baggage fees and seat selection remain primary drivers of this growth.

For New Zealand businesses, this means being strategic about which extras truly add value to your corporate travel program.

6. International risk considerations

Current geopolitical dynamics continue to influence flight paths and create localised disruptions in various cities.

Keep an eye on global and city-specific unrest when planning international travel. This is particularly relevant for Kiwi businesses expanding into new markets or maintaining relationships in regions experiencing political tensions. 

Strategic recommendations for kiwi businesses in 2025 

 

  • Adapt your travel program
    • Book trans-Tasman and Asia routes well ahead given high load factors
    • Build a flexible travel policy to handle market uncertainties
    • Take advantage of stabilising hotel rates for better negotiations 
  • Leverage technology smartly 
    • Invest in a smart travel management platform for streamlined booking
    • Implement digital solutions that enhance traveller experience 
  • Manage costs effectively
    • Plan strategically around the 2% capacity increase
    • Be selective with ancillary services (baggage, seat selection)
    • Consider economy options 
  •  Stay security-conscious
    • Monitor geopolitical situations affecting key routes
    • Use real-time tracking for duty of care
    • Maintain flexible booking options for high-risk regions
    • Keep travel policies agile for quick response to global events 
  • Plan for sustainability
    • Look into sustainable practices and travel options
    • Consider carbon emissions and environmental impact
    • Review your corporate travel policy
    • Choose hotels with green credentials 

Looking ahead: your 2025 travel success

While market dynamics keep shifting, one thing's crystal clear: success in 2025 demands both smart tech and seasoned expertise. That's where we come in. Our tech, YOUR.CT puts powerful tools at your fingertips, while our travel experts with local culture experience ensure you're always ahead of the curve.  

YOUR.CT, is more than just a booking platform, it’s a traveller-tracking, report-generating, travel-policy keeping, powerhouse of software that gives you visibility over your entire travel program. We’d love to give you a quick demo!  

Whether you're booking complex or personalised itineraries, handling last-minute changes, or optimising your travel spend, you've got a dedicated team in your corner 24/7, anywhere in the world, someone who knows your business and is ready to help. 

Let's chat! 

Want to see how these trends could work to your advantage? Our travel experts would love to help you navigate what's coming and make sure your travel program is future-ready. 

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