Business travel is shifting towards pursuing high cost-performance value

*This is an AI translation. The original article can be found ici 
La source: 商務旅行轉而追求「高CP值」

When budgets are tight, business travelers will fly to more cities in a row, attend more meetings — and also schedule a few days off for themselves. 

The Trump-led U.S. government is ushering in an era of “tight budgets” for global business travel. 

Written by: Yang Yingwei 
Edited by: Deng Yongjun 

According to an industry survey conducted in early April by the Global Business Travel Association (GBTA), nearly 30% of corporate travel procurement professionals expect a decline in business travel volume this year. Additionally, 27% predict that business travel spending will drop by an average of 20%. 

GBTA’s analysis attributes this decline primarily to policy uncertainties from the U.S. government, including tariffs, cross-border policies, and entry restrictions. 

“Business travel is one of the most discretionary areas of corporate spending. When uncertainty arises, it’s often the first area where companies cut budgets,” said Catherine Logan, GBTA’s Senior Vice President for Europe, the Middle East, Africa, and Asia-Pacific. She described the shift toward conservative travel spending as a “responsible approach,” but emphasized that business travel buyers in the Asia-Pacific region remain more optimistic about their travel budgets and spending for the year. 

According to another survey released by the Global Business Travel Association (GBTA) in late May, business travel spending in the Asia-Pacific region is expected to grow by 10.8% annually, reaching $679 billion by the end of 2025. 

“Asia-Pacific has already become the largest market for business travel. According to our data, last year the region accounted for 40% of global business travel spending,” said Catherine Logan. 

Leading the region is China. Based on GBTA’s annual Global Business Travel Index, in 2024, China’s business travel spending reached $372.5 billion, capturing 25% of the global market, making it the largest market worldwide. 

“Our backend data shows that international business travel by Chinese companies is increasing, and the overall economic vitality of the Greater China region is very strong,” said Song Tao, CEO of Trip.Biz, the corporate travel arm of Trip.com Group. In response to questions about whether China’s economic slowdown would affect business travel, he added, “Data doesn’t lie, but sometimes it can surprise you.” 

Logan emphasized that the growth of the business travel market is closely tied to the growth of the economy: 

“Business travel isn’t about flying business class—it’s about going out to do business,” she said. “So when you see such massive economic activity in the Asia-Pacific region, it naturally comes with a lot of business travel.” 

As the corporate travel management arm of Trip.com Group (NASDAQ: TCOM), China’s largest online travel agency (OTA), Trip.Biz serves over 15,000 large enterprises and 1 million small and medium-sized businesses. 
Song Tao noted that Chinese companies’ overseas expansion strategies are becoming increasingly clear, which has significantly boosted sales of Trip.Biz’s international solutions: 

“It’s no longer just about seeking opportunities abroad—many companies have already established a local presence and formed stable operations.” 

“It might come as a surprise, but according to our data, the food and beverage industry is very active in business travel,” recalled Song Tao. He shared that during a business trip to Seattle, he saw several Chinese tea brands already competing there: 
“Seattle is considered a relatively slow-paced city.” 

He added that manufacturing and technology are also two of the most active sectors for Chinese business travel. However, their destinations tend to differ: 

• Manufacturing companies prefer Southeast Asia, 

• While internet-based industries, especially gaming, have been actively expanding into Europe in recent years. 

“One particularly interesting destination is Brazil—it’s popular across various industries. It’s not only a potential market but also an important location for setting up international offices.” 

Thanks to the growth of China’s business travel market, Trip.Biz has seen strong financial performance. According to figures compiled by Bloomberg Businessweek (Chinese Edition) from Trip.com Group’s financial reports, Trip.Biz generated RMB 2.5 billion in revenue in 2024. 
This is more than double its revenue in 2019 (pre-pandemic), and over three times its 2017 revenue of RMB 750 million. 

From a macro perspective, although China’s business travel market is performing well, a closer look at different industries and companies reveals that cost control remains a key focus when planning business travel. 

“This doesn’t mean companies are cutting their business travel budgets,” said Catherine Logan. According to GBTA’s data, corporate travel budgets have actually increased, but the main reason is rising hotel and airfare prices. 

However, companies are placing greater emphasis on the “return” of business travel. 

“Businesses want to make every penny count,” Logan said. 

The 2024–2025 Business Travel Management White Paper (hereafter referred to as the “White Paper”) released last year by Trip.Biz also reflects this trend. In the 113-page report, 26 pages are dedicated to a special section titled “A Practical Guide to Cost Optimization and Efficiency Improvement.” 

In short, this leading Chinese business travel management company devoted nearly a quarter of its flagship annual report to teaching corporate travel procurement professionals how to control spending and boost efficiency. 

Survey results in the White Paper show that private enterprises in China are the most focused on cost-efficiency in business travel, scoring 8.4 out of 10 in terms of concern. Even foreign-invested enterprises, which showed the lowest level of concern, still scored 7.9. 

“Cost-effectiveness has now become a top priority for many business travelers,” said Toby Smith, Vice Chairman of Swire Hotels. In a written interview, he used Hong Kong as an example, noting that business travelers from mainland China are shortening their stays: 
“The convenience brought by the rapid development of high-speed rail, along with increasingly frequent flights between major mainland cities, allows business travelers to easily visit multiple locations in one trip—resulting in shorter stays in Hong Kong.” 

“Single-day business trips are becoming less common. People now prefer to link multiple stops—for example, arranging different meetings over a three-day trip, flying to Shanghai first, then to Beijing,” said Catherine Logan. “People are approaching business travel with a much more purpose-driven mindset.” 

Logan further explained that this trend of “linked itineraries” is one of the changes the COVID-19 pandemic brought to business travel patterns: 

“If this interview had taken place six years ago, we would have done it over the phone—and we might never have met in person. That was a very practical approach.” 

Speaking from Northern Ireland in a virtual meeting with a journalist in Hong Kong, Logan noted that the rise of online meetings during the pandemic has changed how people communicate: 

“There’s real value in humans sitting in the same room, talking face-to-face, and exchanging ideas. That’s how connections and relationships are built—and that’s crucial in business.” 

To align with this trend, Swire Hotels has actively expanded its infrastructure in recent years to create convenient “third spaces” for business travelers to meet. For example, The Upper House, located in Admiralty, Hong Kong’s central business district, features the Mediterranean restaurant Salisterra, which opened in 2021. 

“The restaurant’s relaxed yet private atmosphere makes it an ideal choice for many business travelers to host business lunches or meet with partners,” said Toby Smith. 

In addition to the restaurant, which costs around HKD 500 per person, the group also offers more accessible options. Smith introduced EAST Hong Kong in Quarry Bay, which features Domain, a combined café and co-working space on the first floor of the lobby: 

“It was designed to cater to the changing preferences of business travelers.” 

The space even extends into the nearby shopping mall, allowing office workers in the area to enjoy their signature crispy croissants, making it easy for business conversations to happen anytime, anywhere. 

This type of space that balances work and leisure needs is a continuation of the “work-from-home” trend that emerged during the pandemic, reflecting a growing blending of work and personal time. Similarly, Catherine Logan pointed out that “bleisure” travel—a combination of business and leisure—is becoming increasingly popular. This refers to business travelers extending their trips by a few days to enjoy local leisure activities. 

A 2024 Deloitte survey on business travel showed that two-thirds of business travelers in 2023 extended their trips for leisure, and one in seven said they had done so three or more times. 

“When people travel to a place they’ve never been before, it’s only natural to seize the opportunity and make it part of their life experience,” Logan said. 

“But it does present an interesting challenge for organizations: where are travelers, and who is responsible for them?” Logan raised the issue of duty of care, noting that travel disruptions are common—local strikes, natural disasters, or terrorist incidents can all affect employee safety. Companies must be able to provide timely support and even dynamically adjust travel plans. 

In addition, bleisure travel also brings compliance and auditing challenges. Logan noted that companies need to establish clear policies and can use technology to monitor bookings and identify leisure components. For example, data tools can calculate the extra accommodation costs or increased airfare due to extended stays or accompanying family/friends, and then fairly allocate costs between the individual and the company. 

Risk and compliance is one of the most promising areas for AI applications in the business travel industry. Trip.Biz developed a product called “Chengxin”, which uses AI models to identify risky travel bookings. So far, it has developed nearly 20 models covering flights, hotels, and taxis. 
Song Tao gave an example involving hotel bookings: some business travelers, taking advantage of their familiarity with hotel staff, collude to inflate receipt prices. Chengxin can frequently scrape seasonal hotel pricing to quickly flag overpriced bookings and alert company reimbursement officers. 

Citing industry research, Song noted that around 7% of global business travel bookings carry compliance risks. He emphasized that using AI to ensure compliance is more about preventive control: 

“Risks often start when individual employees discover small loopholes and take chances, which then leads to group imitation. In many past compliance cases, once the issue surfaced, it involved large sums of money.” 

Riding the momentum of its parent company Trip.com Group’s global expansion, Trip.Biz plans to expand into eight new global locations over the next year, including Thailand and Malaysia in Asia, and the UK and France in Europe. 

“This year’s global expansion will be relatively aggressive,” said Song Tao. However, he emphasized that entering Europe is not about competing for market share, but rather about serving the needs of Asian clients as part of a globalization roadmap: 
“What we’re best at—and where we continue to gain an edge—is still the Asia-Pacific market.” 

Swire Hotels and GBTA are both optimistic about the future of the Asia-Pacific business travel market. Swire Hotels is actively expanding its “House Collective” series, with plans to open new properties in Shenzhen, Xi’an, and Tokyo. Meanwhile, the Global Business Travel Association (GBTA), established in 1968, announced just a few months ago that it will be setting up advisory boards in India and China. 

“GBTA must establish a presence in this market if it wants to truly call itself ‘Global’,” said Catherine Logan. 

By the end of this year, Logan will be traveling to India, then on to Australia and Singapore for business. She expressed great excitement about the upcoming trip: 

“This will be one of the most interesting and meaningful things I’ve done in my career. I haven’t spent much time in the Asia-Pacific region before. I’m really happy to meet people here and get to know the region,” Logan said. 

“It’s going to be a fascinating journey!”