Why the rise of business travel in 2025 demands stronger expense controls
Business travel is firmly back on the agenda for Australian companies, with SAP Concur's 7th Annual Global Business Travel Report showing that Australian outbound travel volumes grew 12.4 per cent in the first half of 2025, compared to the same period in 2024. (1) The rebound was especially strong in the first quarter (Q1), which grew by 19 per cent year on year (YoY), followed by a more moderate, though still positive, 6.3 per cent increase in the second quarter.
The United States (US) remains the dominant destination, representing 24.1 per cent of all international trips for Australian business travellers, reflecting the depth of commercial ties across technology, defence, financial services, and professional sectors. Singapore follows at 11 per cent of total travel, reinforcing its continued role as a gateway to Asia and hub for multinational operations. India ranks third at 4.5 per cent, signalling expanding connections between Australian organisations and South Asia's fast-growing economy.
Other top destinations include the United Kingdom (UK), Japan, and China, each of which accounted for a significant share of travel. Emerging hubs such as the United Arab Emirates and Malaysia also ranked highly, suggesting Australian companies are diversifying their global engagement and capitalising on opportunities in the Middle East and Southeast Asia.
Domestic travel is also on the rise, with ticket volumes growing strongly in the first half of 2025, increasing 17.25 per cent in Q1 and 10.64 per cent in Q2 compared to the previous year. Average domestic fares remained relatively steady, coming in at US$401 in Q1 and US$402 in Q2, reflecting a slight decline of around five-to-six per cent YoY.
This Australian picture mirrors broader global patterns. Worldwide, the US remains the number one destination for business travellers, accounting for 15.3 per cent of all international trips in the first half of 2025. Germany and the UK are also strong performers globally, reflecting their positions as key centres of commerce and innovation. The similarity between Australian and global travel trends highlights the centrality of North America and Europe to business strategy, while also pointing to the importance of Asia as a growth engine.
Airfare costs have played a supporting role in this resurgence. Average international fares for Australians dipped slightly in 2025, with Q1 prices falling 1.1 per cent to US$2,175 per ticket and Q2 prices down 1.2 per cent to US$2,099. This relative cooling provides some cost relief for organisations ramping up travel, even as volumes climb. Average fares have also held steady globally, signalling a level of stability despite growing demand.
The growth in outbound activity demonstrates the continued importance of travel as a business driver. SAP Concur's data shows that 94 per cent of business travellers globally view travel as helpful or essential to success in their role. This validates investment in international presence, face-to-face client engagement, and global partnerships for Australian companies.
This resurgence in business travel also intensifies the challenge of managing costs, compliance, and employee experience. Finance leaders are under pressure to fund growing volumes of travel while maintaining transparency across bookings, expenses, and supplier relationships. The decline in airfare prices provides some breathing room, though organisations risk losing that benefit without effective management tools.
This is where smart travel and expense platforms become indispensable. The ability to see trends in real time, track spending against policy, and adapt to shifting patterns is critical. For instance, recognising that Singapore and India are rising in importance lets companies negotiate more favourable supplier arrangements and plan for cultural and regulatory nuances. Equally, monitoring airfares ensures organisations act quickly to capture savings when pricing dips.
The data points to a clear conclusion: business travel is not only back; it's becoming a strategic area for growth. International engagement is broadening and intensifying for Australian companies, making travel and expense management a board-level concern.
Organisations that take a proactive approach to managing travel and expenses will build the resilience and foresight needed to stay competitive, even as global conditions shift. Connecting their people, processes, and data will give leaders the visibility to make smarter decisions, protect margins, and strengthen global relationships. Now is the time for companies to look closely at how they manage travel and expenses, so growth does not come at the cost of control.
Reference:
(1) https://www.concur.com.au/
