Expedia Group research has revealed a widening disconnect between optimism and capability among travel management companies (TMCs), as the corporate travel sector accelerates into its next phase of growth.
Detailed in the report The Future of Business Travel: Is Market Optimism Outpacing Capability, the findings show that TMCs are overwhelmingly positive about the road ahead, with 95 per cent of respondents expressing confidence in the next three years of business travel. This sentiment is underpinned by rising demand and the continued return of corporate travel programs.
However, the report also highlights a clear expectation–execution gap, with many TMCs acknowledging they are struggling to keep pace with evolving traveller needs.
According to the research, expectations have surged across key areas including blended trip planning (85%), booking simplicity (84%), loyalty rewards (83%), personification (81%) and mobile booking (76%). Yet only 30–40 per cent of TMC leaders say they feel very confident in their ability to deliver on these demands today.
The confidence shortfall is most pronounced among larger TMCs with more than 250 employees, where operational complexity presents additional challenges.
The findings align with broader shifts in business traveller behaviour, with customers increasingly prioritising efficiency, personalisation and flexibility. This includes demand for more intuitive booking experiences, clearer loyalty value and the ability to seamlessly combine business and leisure travel.
Together, these trends are placing mounting pressure on TMCs to modernise their end-to-end offering and keep pace with rapidly changing expectations.
Investment in technology is ramping up, particularly in artificial intelligence, automation and real-time data analytics. All respondents reported adopting AI in some capacity, while 97 per cent are investing in automation and analytics capabilities.
Despite this momentum, fewer than half of those surveyed believe their budgets for emerging technologies are sufficient, suggesting ambition is outstripping foundational readiness.
“Business travel is entering a phase of immense opportunity – and equally immense pressure. Leaders know exactly what travellers want, but many lack confidence that their current systems can deliver”, says Carolina Cabero, SVP Expedia Group B2B. “Closing that gap is now the challenge. With integrated platforms enhanced by AI and stronger tech investments – such as Expedia Group B2B’s extended Rapid API offering – TMCs can meet rising expectations with confidence, adapt faster and lead the next era of business travel with certainty”.
