GSAIR 2025 | Page 28

Corporate travel demand: a mixed picture?

In 2025 so far, UK corporate travel demand is growing, albeit modestly. Global spending is projected to reach an all-time high of £ 1.57 trillion this year, a growth rate of 6.6 % 10 despite trade tensions, fiscal policy uncertainty and economic pressures.

Although anecdotal evidence from travel managers suggests that spending on travel has plateaued, UK business travel spending increased from £ 36.1 billion in 2023 to £ 40.3 billion in 2024, 11 with an 8.1 % increase forecast for 2026 12

“ All business travel is being impacted by increased costs due to the tariffs. Everybody’ s looking at how can they save money,” says consultant Karen Hutchings of Cobb and Hatch.

At BP, travel spend is down 20 % year-on-year, as Global Category Lead( Travel, Meetings & Events) Richard Eades confirms.“ We’ ve got to reduce our debt by $ 20 billion by 2027 so travel is one of many areas of the business to be affected. In some locations we are reducing our volumes. In others, our transactional volumes aren’ t down that much, but we are buying smarter, which is driving down our average rates per night.”

The picture is rather different at Accenture, as Global Procurement Director, Travel & Mobility Jan Jacobsen explains.“ Our transient and mobility volumes into serviced apartments have increased because we’ ve done more assignments and apartments are more visible in our approved buying channels.”

Steve Lowy, CEO of AES says that serviced apartment demand varies by region, both in the UK and across Europe.“ Some markets are seeing high demand, and low supply. In London there’ s medium demand and high supply so rates have come down. The world is still in flux, so corporates have a lower budget.”

Corporate mobility rebounds

Corporate mobility has largely rebounded, especially across finance, tech, and infrastructure projects in London, Manchester, and regional hubs. Relocations to the UK are rising. In April 2025, enquiries from companies looking to relocate staff to the UK were up 8 % year-on-year. They come primarily from the energy, finance, professional services, legal, and tech sectors, and are focussed mainly on London. 13

Indian nationals consistently form the largest group of both visa applicants and those in the workforce, reflecting a significant trend in recent years for skilled and professional roles, including in the IT and healthcare sectors. 14 Sources report increased overseas interest in UK jobs from the US, Australia, France, Italy, and Spain. 15

Global relocation volumes are increasing too. There is sustained demand for AI and developer talent. The UK is amongst countries employing over 50k AI developers, with 1,100 UK firms hiring more engineers in 2025. 16

Many UK employers are adapting to borderless hiring models, allowing professionals to work remotely from different countries while being employed by UK-based firms. Digital nomad visas are becoming more prevalent, prompting corporates to provide a structured way to employ foreign talent without requiring full relocation to the UK. 17

There’ s optimism for the immediate future, as Gemma Williams of Sirva confirms.“ Although we have seen a decline in relocations year-on-year, we’ re expecting that to rebound over the next twelve months.”

Dynamic Working Shift Continues

The shift towards remote and hybrid work continues to influence global mobility trends in 2025. Despite organisations like PwC enforcing three days a week in the office, with attendance dashboards 18, and Transport for London( Tfl) demanding at least 50 % in-office attendance, 28 % of UK workers are hybrid. 19 This illustrates the push-pull between flexibility and inoffice presence that mobility teams must plan around.

The rise of dynamic working has boosted long-stay bookings from domestic and international mobile professionals seeking work-ready units. Serviced apartments provide the flexibility required to support for hybrid work and duty-of-care compliance.

Carol Fergus is Director, Global Travel, Events and Ground Transportation at Fidelity International.“ Since Covid, people have been using serviced apartments more due to dynamic working and a desire for a better work-life balance. They’ re going for that option because more of their peers are working from home and they want that option to stay in a serviced apartment as opposed to a hotel room.”