While global travel budgets are expected to rise by approximately 5% this year* , CFOs are demanding more than just receipts. They want to see the direct correlation between a boarding pass and a business outcome.
This means budgeting for business travel can no longer be a simple “last year plus inflation” exercise. In 2026, budgeting is about balancing growth and control, traveller experience and compliance, and cost discipline with business impact.
Here’s what travel managers need to know as they plan for the year ahead.
1. Budget with purpose: ROI driven spend
Whether it’s closing a deal or building relationships, meeting in-person is still a key driver of revenue and culture. Although business travel is increasing, most companies are prioritising spend on impactful trips that directly support business objectives.
This means moving away from the standard “Travel & Entertainment” forecasting. Instead, budgets need to be purpose-driven, and spend needs to be re-categorised accordingly.
For example:
• Sales and client acquisition.
• Client retention and account management.
• Training, onboarding, and leadership summits.
By tying budgets to these specific outcomes, travel managers can defend their spend during quarterly reviews by showing the ROI of a face-to-face meeting versus a video call.
2. Managing travel cost fluctuations
Different components of a trip cost fluctuate every year. For example, global Average Ticket Prices (ATPs) are rising by only about 1.1% this year. In contrast, accommodation rates are increasing by 5-8.5%, with key hubs like Switzerland jumping to up to 10.5%**. To better manage costs, rather than forecasting based on historical spend, companies are adopting zero-based budgets for travel.
This means using reliable data that supports better forecasting by department, region and purpose. Travel managers should break budgets down into separate categories, including:
• Air
• Accommodation
• Ground transport
• Meals & incidentals
• Meetings & events, and so on.
3. Travel technology and AI are now an essential budget line item
Artificial intelligence, predictive analytics and integrated travel and expense platforms are rapidly becoming standard tools for modern travel programmes.
These tools help travel managers to:
• Forecast spending with real-time data
• Improve budget accuracy with line of sight of ancillaries like checked bags, seats booked, etc.
• Manage poor traveller behaviour to improve savings
• Proactively manage risk
Budgeting for and investing in the right technology is not an overhead – it’s a cost-control mechanism that provides the visibility needed to manage spend proactively.
4. Traveller Experience vs Compliance Cost Strategy
Top travel managers are including traveller satisfaction components in financial planning. It makes sense – happy travellers perform better and follow rules more consistently, which reduces spending.
Money needs to be allocated toward:
• Ancillaries that improve productivity
• Clear guidelines around bleisure travel
• Travel technologies that streamline processes
5. Duty of Care and ESG Are Non-Negotiable Costs
Nowhere else has sustainability – along with traveller safety – become so central to where money is allocated when travelling. These factors no longer sit on the sidelines; instead, they shape real decisions about trips.
Travel budgets should explicitly include:
• Risk intelligence and traveller tracking tools
• Emergency support services
• Greener travel options.
This may mean shifting funds toward pricier Sustainable Aviation Fuel (SAF) credits or using green accommodation options.
The Bottom Line
Spending on business trips in 2026 won’t mean fewer rands spent. It will mean making every rand count.
By treating business travel costs as an investment, you can gain positive returns, while keeping your road warriors happy.
Need help refining your business travel budget? Reach out to us on sales@renniesbcdtravel.com
* Morgan Stanley AlphaWise corporate travel survey, 2025
**Statistics sourced from BCD Travel Market Report, 2026 Outlook