SAP Concur, a leader in travel and expense management solutions, has issued its predictions for the travel and expense landscape in 2025, outlining significant trends poised to impact the industry. The insights are derived from an analysis of current business practices and the evolving role of technology in enhancing operational efficiency and security.
One of the primary predictions emphasises a sustained investment in digital systems and security infrastructure. As businesses amplify their digital capabilities by adopting innovations such as process automation and generative AI, they concurrently become more vulnerable to data breaches and cyber threats. A representative from SAP Concur articulated this concern, stating, "Today, more organisations than ever experience cybersecurity breaches, putting personal information at risk. It's a delicate balancing act to respond quickly to the demands of internal and external stakeholders without disregarding security concerns." Companies are expected to prioritise technology and security investments that not only enhance customer value but also mitigate risk.
The second trend identified indicates a anticipated resurgence in business travel as employees return to the office, necessitating more scrupulous budget management. As inflation shows signs of slowing, this reset could allow companies to glean more value from their travel expenditures. Brett Wheeldon, VP of Solutions Consulting for the Asia-Pacific region at SAP Concur, commented on this trend, noting, "From 2020-2023, circumstances led to dramatically reduced travel activity, and companies experienced benefits to their bottom line. Corporate travel is now recovering strongly—according to GBTA, the global business travel industry spending is expected to hit a record $1.48 trillion this year, with China and the US the two fastest growing markets."
In regard to administrative processes, SAP Concur predicts a transformation in the terminology and structure of expense reports by 2025. Automation advancements are expected to evolve conventional expense reports into exception reports, wherein numerous transactions will be deemed "trusted" and exempt from routine reporting. The focus will shift to highlighting any deviations from established travel and expense policies.
A notable observation from the study is a projected healthy scepticism among employees towards the rapid integration of AI technologies. The company's survey revealed that while a significant 95% of business travellers would consider utilising AI-powered automation, there remains an understanding that such technologies will augment rather than replace human judgement. As expressed in the report, "While 2024 promised AI-literate businesses a host of transformative benefits, 2025 will see the tech treated with a sensible level of scepticism and thoughtfulness." Wheeldon added that travel booking processes stand to benefit greatly from AI as they evolve away from traditional cumbersome forms towards more conversational interfaces that can access a wealth of travel-related data.
Moreover, there is an increasing demand for enhanced user experiences shaped by growing traveller expectations. As business travel resumes, employees are anticipated to expect more from their travel and expense systems, including real-time updates regarding travel disruptions, and extensive support mechanisms to assist with challenges arising from extreme weather or geopolitical conditions.
Wheeldon encapsulated the necessity for organisations to refine their travel programs by stating, "Of course, that aggregated T&E data also provides insight into other areas APAC businesses are becoming more and more focused on, for example, what is the organisation's travel program's carbon footprint, and does the organisation have the tools to reduce that footprint?" The emphasis here is on the dual need for leveraging new investments in technology and ensuring robust security and data protection practices.
In summary, the predictions from SAP Concur outline a landscape where enhanced investments in digital security, an upsurge in business travel, an evolution in reporting practices, and heightened expectations for user experiences converge to shape the future of business travel management. The findings reflect the dynamic interplay between technological advancement and traditional business needs as companies navigate the complexities of a post-pandemic environment.
Source: Noah Wire Services