- Business travel programs face four key gaps.
- 42 percent of travelers book outside policy.
- Hotel rates reach $216 in Q3.
A report titled “Trends & Strategies for H1 2027” from FCM Consulting found that economy airfares rose about 21 percent so far, with further increases expected in 2027 as airlines pass on higher fuel costs. Global hotel rates fell to $216 in the third quarter from $223 in the second quarter but remained 0.9 percent above the same period a year earlier.
“Every business trip is an investment in a customer, a deal or a team,” said Jo Lloyd, FCM’s chief customer officer. “When travel managers can show senior leaders why each trip happens and what it delivers, managed travel is seen as a strategic asset, and it’s easier to invest in the trips that matter.
Managing AI, hotel rates and disruptions
Companies do not always record why employees travel. Travel reports usually track costs and whether employees follow company rules, but they often miss the reason for each trip. Adding the purpose of each trip to the booking process can help companies see how travel spending supports their business goals.
As more companies use AI to manage travel, they need clear rules for its use. The report recommends setting rules for checking AI decisions, deciding who should review them and making clear who is responsible if something goes wrong.
Another concern is the difference between hotel rates companies agree on and the rates employees actually book. In the Americas, 42 percent of travelers book outside company rules, while only 56 percent use approved booking tools.
Hotels offer agreed rates with last room availability 60 to 85 percent of the time, compared with 25 to 50 percent for rates without this option. The actual rate paid is the best way to measure how well a hotel deal is working, the report said.
Companies also need to prepare for travel disruptions. Airline seat capacity in the Middle East is down 10.7 percent so far. Nearly one in four flights in Europe was late in 2025, while U.S. flights had their lowest on-time performance since 2014. The
European Union’s Entry or Exit System has also increased processing times by as much as 70 percent at some airports.
A recent report by Holafly found that 53.4 percent of business travelers manage their own internet access, raising concerns about cybersecurity risks when employees connect outside company networks.
