The recovery of business travel post-pandemic faced challenges in 2025 due to rising uncertainty linked to U.S. trade policies and government workforce reductions. Suzanne Neufang, CEO of the Global Business Travel Association (GBTA), projected global business travel spending to reach $1.64 trillion by 2025, following an anticipated surge from $1.48 trillion in 2024. Despite being poised to surpass pre-COVID levels last year, a GBTA survey indicated that 29% of U.S. and international corporate travel managers expect a decline in business travel, potentially reducing it by up to 22%.
Travel experts note that while pessimism has escalated, there remains no drastic fall in bookings. Jonathan Kletzel from PwC stressed that travel isn’t collapsing, especially for sales-driven organizations needing to meet clients in person. However, Delta’s CEO, Ed Bastian, reported a slowdown in travel demand due to companies reassessing their business trips. Other airlines and hotel chains like Marriott and Hilton have adjusted financial forecasts amid diminished U.S. government demand.
Government contractors have been especially affected, experiencing a significant drop in travel sales due to funding cuts. Global Travel Associates reported a 20% decrease in sales in Q1, with clients opting for refundable tickets and canceling plans. Jan Freitag highlighted that despite softening individual travel, corporate engagements persist, although further tariff introductions could prompt cost-cutting measures including reduced travel expenditure.
As individual travelers express anxiety—evident from a surge in searches for flexible travel insurance—corporate travel management services like Navan noted an uptick in bookings early this year. The overall travel landscape remains uncertain, indicating a potentially slow year for all travel types in the U.S. market as organizations navigate economic challenges.
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