As businesses progressively shift towards increased face-to-face engagements, the corporate travel landscape appears poised for notable growth in the coming years. The Global Business Travel Association recently indicated that business travel in 2024 has either met or surpassed expectations, with optimism carried forward into 2025 across various corporate sectors. Approximately two-thirds of companies project a boost in their travel budgets specifically aimed at facilitating in-person meetings and conferences, indicating a significant trend towards traditional business practices as the pandemic recedes into memory.
According to PYMNTS, three out of five commercial travel service buyers reported a heightened frequency of employee attendance at meetings and conventions compared to the previous year. This uptick in travel, however, is accompanied by a pressing need for these companies to manage costs effectively; a notable 78% of firms have identified cost control as a primary concern.
In response to this demand, corporations are increasingly integrating corporate cards with expense management systems. Recently, firms such as Brex and Navan have collaborated to launch an integrated offering designed to streamline travel payments. Dubbed BrexPay for Navan, this initiative consolidates travel services with corporate card offerings into a singular workflow, enabling enterprises to better manage their financials. Similarly, American Express has partnered with expense software provider Emburse to connect card programmes to Emburse Spend, facilitating virtual card issuance and improving card reconciliation.
In the UK, Mastercard and NatWest have introduced Approval2Buy, a mobile virtual card payment tool aimed specifically at businesses. This development marks a significant step as it becomes the first service in Europe to leverage Mastercard’s mobile virtual card technology. The trend of integrating digital solutions into traditional travel practices signals an industry-wide shift towards more efficient payment systems.
The Commercial Travel Firms sector, reflecting some of the same transformations seen in corporate travel, is also adapting to these technological changes. PYMNTS Intelligence, through its Growth Corporates Working Capital Index commissioned by Visa, revealed that the use of working capital solutions, including virtual cards, is projected to increase by 25% within commercial travel firms. The data suggests that business expansion is a significant driver behind this trend, with 87% of commercial travel firms indicating a likelihood of employing at least one corporate travel solution this year. Furthermore, 73% of firms in this sector intend to use these solutions in a strategic manner to enhance operational effectiveness.
The evolution of AI automation and emerging technologies within the realm of corporate travel management and payment systems thus highlights a transitional phase in how businesses interact and manage finances, setting the stage for ongoing developments in the travel industry.
Source: Noah Wire Services