As global business travel gears up for 2025, signs of recovery are evident with in-person meetings, trade shows, and conferences returning to pre-pandemic levels. Companies are preparing to expand budgets for travel activities, emphasizing the need for efficient expense management. The evolving landscape is pushing organizations to rethink their financial tools and strategies to optimize costs and streamline processes. Additionally, innovative collaborations between finance and travel technology firms are gaining momentum, highlighting the integration of digital solutions to meet corporate demands.
In earlier years, organizations were hesitant to increase travel budgets due to uncertainties. However, recent industry studies reveal a growing confidence, with more than two-thirds of firms reporting positive sentiments for 2025. Comparatively, the focus on cost control remains consistent, as it was a major priority before the pandemic. The resurgence of travel is now coupled with the integration of modern financial tools like virtual cards, which were less prevalent in previous years. These cards aim to address long-standing cost challenges through automation and improved tracking capabilities.
How Are Companies Managing Travel Costs?
Managing expenses has become imperative, with 78% of firms citing cost control as a top priority. Businesses are adopting advanced systems that integrate corporate cards with expense management platforms. For instance, Brex and Navan have launched a joint solution combining Navan’s travel services with Brex’s corporate cards to offer a unified workflow. Similarly, American Express (NYSE:AXP) partnered with Emburse to enable virtual card issuance for its customers, enhancing payment tracking and reconciliation. These innovations are designed to reduce manual processes and ensure financial transparency.
What Role Do Virtual Cards Play in the Process?
Virtual cards are gaining traction for their ability to simplify payments and improve expense oversight. Mastercard and NatWest’s Approval2Buy service, which uses mobile virtual card technology, offers businesses in the UK an alternative to traditional payment methods. Additionally, Mesh Payments has collaborated with SoFi Bank and Galileo Financial Technologies to integrate expense management tools with payment processing solutions. These partnerships underscore the industry’s shift towards digital-first approaches to manage growing travel expenditures.
Commercial travel firms are also leveraging digital advancements to enhance their offerings. According to PYMNTS Intelligence’s Growth Corporates Working Capital Index, commissioned by Visa, the use of working capital solutions, including virtual cards, is projected to increase by 25% among such firms. With 87% of organizations expressing interest in corporate travel tools, these solutions are seen as essential for enabling business expansion and strategic decision-making in the travel sector.
The shift towards integrated travel and payment solutions reflects broader trends in the corporate world. While cost control remains a consistent focus, the adoption of digital tools is creating efficiencies that were previously unattainable. For businesses, these innovations not only streamline expense management but also provide greater financial visibility and control. Companies looking to expand their travel budgets for 2025 must now consider these tools as indispensable for navigating the complexities of modern corporate travel.
