India's business travel to surge, but with a focus on cost control

Despite strong demand for business travel in India, with 74% of firms expecting an increase, a new report shows a simultaneous focus on cost control, with companies increasingly turning to AI and technology to manage expenses and improve efficiency.

Balancing Growth and Cost Control

Business travel demand in India is expected to remain strong over the next year, with 74 per cent of organisations anticipating an increase in travel activity, even as companies focus on tighter cost controls and greater operational efficiency, according to a report by Ebix Travels, an online travel services firm.

The findings, based on travel patterns and booking trends across the company's enterprise client base between June 2025 and May 2026, highlight how Indian businesses are balancing growth ambitions with financial discipline. According to the report, 74 per cent of organisations expect business travel activity to increase over the next 12 months. At the same time, 68 per cent identified cost optimisation as their top travel management objective, indicating a growing emphasis on extracting greater value from every business trip.

The report noted that business travel continues to play an important role in supporting customer engagement, market expansion, partnership development and revenue growth. Reflecting this trend, 52 per cent of organisations reported an increase in premium and business-critical travel. Meanwhile, 47 per cent observed a rise in last-minute bookings, suggesting that companies increasingly require flexibility to respond to changing market opportunities and operational needs.

Technology's Growing Role in Corporate Travel

The analysis also pointed to the growing use of technology in managing corporate travel programmes. According to the findings, 71 per cent of respondents cited fluctuating airfares as a major challenge. To address these issues, nearly half of organisations are exploring artificial intelligence-based solutions. The report found that 49 per cent of organisations are considering AI-powered tools to improve booking decisions, optimise travel spending and enhance the overall traveller experience.

Digital adoption is also reshaping the way employees book and manage travel. Self-booking tools now account for 58 per cent of all bookings, reflecting growing demand for faster approvals, greater convenience and seamless digital experiences.

Operational Hurdles in Travel Management

However, the report highlighted several operational challenges that continue to affect travel management. Around 63 per cent of organisations reported difficulties arising from disconnected travel, expense, forex and payment systems. According to the report, such fragmented systems often result in limited visibility, compliance gaps and inefficiencies in travel programme management.

Future Outlook: A Data-Driven Approach

The report also said the findings indicate a broader shift in India's corporate travel landscape, where organisations are increasingly relying on technology and data-driven decision-making to balance rising travel demand with financial discipline.

The report suggests that as travel programmes become more complex, companies are likely to invest more in digital tools, automation and AI-led solutions to improve efficiency, optimise costs and support future business growth.

(ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)