In today’s fast-moving world, businesses must quickly adapt to new disruptions or risk falling behind. But what does this mean for the travel and expense (T&E) landscape? And how will evolving T&E trends impact your organization?
For example, we have already noted that emerging AI use cases, such as predictive analytics for expense monitoring, are beginning to simplify expense monitoring and reporting. Additionally, in reaction to changes in strength in the industry, controlling corporations (TMCs) have continued to consolidate.
SAP Concur experts expect those trends to continue, and even accelerate, through 2025. In anticipation of the trends that will shape spending in 2025, here are four key predictions to keep in mind.
More for your money
In 2023, inflation drove growth beyond pre-pandemic levels, with business flow expected to reach $1. 48 trillion by the end of 2024, according to the World Business Travel Association. But the volume of trips hasn’t kept up at the same pace, which has led to higher prices to reduce the number of trips. As inflation slows, businesses can expect to get more costs out of their budgets and expenses.
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.
Stay ahead of the curve
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, consolidating expenses into an integrated platform is a must. Inconsistent formulas only increase pricing and errors, while a unified formula improves the user experience and allows for smarter budgeting, greater negotiations, and fewer errors.
AI’s impact on T&E
AI will continue to make waves in expense management. As finance and groups adjust their policies to adapt to AI, automation will decrease the administrative burden. AI will take on more and more responsibilities such as validating transaction compliance, identifying fraud, and detecting spending patterns that, of course, Otherwise, they 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, providing personalized itinerary recommendations based on the traveler’s personal tastes and the organization’s policies. Generative AI will make it less difficult to wait for prices, 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 positive about AI. While SAP Concur’s sixth annual Global Business Travel Survey found that 95% of business travelers are open to employing AI, they see it as a “useful assistant” rather than relying exclusively on it to manage bookings or submit expense reports.
TMC Consolidation and Issues
TMCs will continue to consolidate and gain negotiating strength with suppliers. This can lead to lower prices and better deals for customers. Additionally, the trend toward content fragmentation will slow; By 2025, airlines and business travelers will take full advantage of New Delivery Capability (NDC), adding greater customization, bundling and seamless 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.
The developing impact on finance
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 volumes increase, organizations will face greater pressure to comply with sustainability regulations. Finance will support consultant investments in generating compliance-first responses, such as carbon monitoring equipment or incentives for SustainableArray.
Collaboration for growth
Finance leaders will work with technical, IT and human resources teams to identify opportunities for business expansion, process automation and innovation. This cross-functional collaboration will see certain generation investments aligned with monetary and non-monetary objectives, such as ESG and skill initiatives.
While no prediction is guaranteed, the future of T&E looks promising. Expect breakthroughs in AI, system integration, diversity of travel options and cross-functional collaboration. These innovations will not only help you manage travel and expenses more effectively but also move your business forward faster.