If you’re planning to travel this year, unfortunately, you can expect higher prices everywhere.
In 2025, flights, hotels, rental cars, and event costs have all gone up.
But you don’t have to let that ruin your plans—there are still plenty of ways to manage your spending and make travel work for you.
With the right tools and smart planning, you can keep costs under control and still have a good experience.
Let’s look at how you can save money and make the most of your travel in 2025.
Key Takeaways
- Smart spending is a must this year, as flights, hotels, and car rentals are getting more expensive.
- Use technology like AI tools and NDC platforms to find savings and make booking trips easier.
- Stay eco-friendly without overspending to keep your company’s image and employees happy.
Why Travel Is Getting More Expensive
The facts are clear, and they’re a bit worrying.
Experts, including Skift, predict global airfare will rise by about 0.5% to 0.6%.
While that might not seem huge, it adds up fast when you consider that hotel rates are climbing by more than 2.5%, and car rental prices aren’t far behind.
So, if you’re planning a big conference or roadshow, be prepared—meeting and event costs are expected to jump almost 5% per attendee per day, making budgets even tighter.
But why are prices going up?
It’s a mix of ongoing problems, such as supply chain issues, worker shortages, inflation, and global tensions.
Airlines are still dealing with delays in building planes, including issues with Boeing’s 737-9 MAX jets and a lack of parts for Airbus.
Fuel prices are also climbing due to conflicts in Eastern Europe and the Middle East.
Hotels are feeling the pressure, too.
In places like New York, strict rules on short-term rentals like Airbnb have sent more travelers back to hotels, which only creates more demand and higher prices.
At the same time, hotels face high energy costs and a shortage of workers, so they have no choice but to charge more for rooms.
And even taxes are making trips more expensive.
France is tripling its aviation tax in 2025, Denmark is rolling out a new flight tax for its green initiatives, and the UK is raising air passenger duties by more than £100 for long-haul travelers.
Additionally, places like Venice and Thailand are adding or increasing tourist taxes.
Strategies for Streamlining Travel Expenses
With costs rising, what can you actually do to manage travel expenses?
Cutting travel altogether might sound like an easy fix, but it’s just not realistic for many businesses.
Meetings still need to happen, clients need face-to-face interactions, and employees need to connect in person.
Instead of canceling trips, the smarter move is to focus on making travel more efficient.
The best thing is to start by seriously reviewing your travel budget.
When was the last time you went through every expense?
Chances are, there’s some unnecessary spending buried in there.
If you’ve already done this and still don’t see room to save, it might be time to bring in some help.
And AI-powered tools can be a real lifesaver—they can look at your spending data, spot patterns, and catch mistakes faster and more accurately than any person could.
Another strategy is to rethink where your teams are traveling.
According to Skift, some regions are seeing sharper cost hikes than others.
If your company often sends people to high-cost destinations, consider scaling back trips to those areas or exploring virtual alternatives.
Sometimes, the best way to save money on travel is simply to avoid it when you can.
Sustainability is also worth factoring in.
Eco-friendly travel might cost more upfront, but cutting back on green initiatives could cause bigger problems down the road.
Today’s employees care about working for companies that prioritize sustainability, and customers are more loyal to brands that take environmental issues seriously.
Dropping sustainability efforts might save a little money now, but it could hurt your reputation and employee morale later.
Instead, look for sustainable choices that fit your company’s goals.
This could mean working with travel providers that are certified as eco-friendly or consolidating trips to reduce emissions while still meeting your business needs.
Technology and Partnerships
The tools you choose can make a big difference in how well you handle travel costs.
If you haven’t started using New Distribution Capability (NDC) technology yet, now is the perfect time to consider it.
According to Business Travel News, companies using NDC platforms are already saving money compared to traditional booking methods since they make booking easier, help you stick to your travel policies, and keep budgets under control.
Another option to make things smoother is working with a Travel Management Company (TMC).
Modern TMCs provide tools that simplify everything from booking to tracking expenses and analyzing data.
But it’s worth noting that ground transportation is also worth a fresh look.
While airfare and hotel rates are rising quickly, ground transportation costs are expected to increase the least in 2025.
So, now might be a good time to think about shifting more of your travel to the ground, especially as more electric vehicles become available.
Just make sure there are enough charging stations where your travelers are headed if you plan to use EVs.
Industry Trends to Watch in 2025
The travel industry is seeing some major shake-ups with mergers and acquisitions.
One big example is American Express Global Business Travel’s proposed $570 million purchase of CWT, which is currently being reviewed by the UK’s Competition and Markets Authority.
Regardless of the outcome, more deals like this are expected, which could lead to changes in service quality and prices.
While inflation is starting to settle, travel costs are still higher than before the pandemic.
Still, sustainability is becoming a bigger focus, with new regulations like the EU’s Corporate Sustainability Reporting Directive.
This regulation pushes companies to use greener travel options, like switching from flights to trains or encouraging fewer but longer trips to reduce carbon emissions.
Travelers’ preferences are changing, too.
Younger travelers, including Gen Z and millennials, are likelier to book international flights and prioritize unique, meaningful experiences over convenience.
Many are happy to save money by booking layovers or less expensive flights so they can spend more on local activities when they arrive.
Don’t Let Rising Prices Hold You Back
Travel in 2025 looks pricier, but it’s also becoming smarter and more innovative.
As we covered today, you aren’t short on ways to confront these challenges head-on, including AI tools, NDC platforms, electric vehicles, and green travel options.
By using new technology, rethinking your travel partnerships, and making smart changes to your plans, you can keep costs under control without sacrificing quality or sustainability.
With the right strategies, you can take on 2025 confidently—and maybe even save a little along the way.
Safe travels!
