Business Travel Holds Steady as Travel Costs Rise
Business travel costs continued to climb in the first half of this year, driven in part by rising fuel prices and broader transportation pressures. However, according to SAP Concur data, companies around the world largely maintained their travel activity despite the higher prices.
The data suggests that while organizations are becoming more thoughtful about trip economics, most are still prioritizing in-person meetings and employee travel.
Travel costs rose across most categories
According to SAP Concur global data from January 1–May 31, 2026, overall business travel costs increased across nearly every major category year over year. Airfare rose more than 8%, hotel rates increased nearly 6%, and car rental costs climbed roughly 5%.
At the same time, the average cost of fuel-related expenses surged. The average transaction in Concur Expense in the gas category increased approximately 22% globally, rising from $50 in February to $61 in April with similar spikes seen in countries around the world.
Transportation patterns shifted in select segments
Those increases are already influencing some travel decisions. While overall air and hotel booking volumes remained relatively flat year over year, there have been some shifts in how employees travel once they arrive at their destinations, as car rental bookings declined roughly 4% globally. Additionally, rail bookings increased approximately 4%, suggesting some organizations may be looking for more cost-effective or efficient transportation alternatives as fuel prices rise.
Premium travel demand remained strong
Even with costs rising, companies did not significantly reduce premium travel spending. Premium cabin bookings—including business and first class—increased about 9% year over year. By comparison, economy bookings remained flat, while premium economy bookings declined approximately 15%.
Companies are balancing traveler experience alongside budget pressures. For longer flights and international trips in particular, some organizations still view premium travel as a worthwhile investment.
What to watch in the second half of 2026
There are early signs that rising costs and operational disruptions could begin affecting demand, with significantly higher average airfares and reduced airline capacity in some parts of the world. The coming months will help determine whether these disruptions create a short-term adjustment or shape a broader shift in business travel behavior. For now, the data suggests companies are willing to absorb higher travel costs rather than scale back travel plans.
Research shows that business travel remains closely tied to professional opportunity and relationship building. In a recent survey conducted in the U.S. on behalf of SAP Concur, 90% of frequent business travelers say traveling for work has positively impacted their careers, underscoring the employee experience and retention benefits of continuing to prioritize business travel even as costs rise.
As organizations navigate higher travel costs in 2026, the data suggests many still view business travel as a worthwhile investment in relationships, employee development, and long-term growth.
Charlie Sultan is president of Concur Travel at SAP.
Methodology: SAP Concur analyzed expense transactions tagged as “gas” in Concur Expense between January 1, 2026, through May 31, 2026, and equivalent time periods from 2025. SAP Concur analyzed air, rail, hotel, and car bookings in Concur Travel for trips booked and undertaken between January 1, 2026 and May 31, 2026 and the equivalent time period in 2025.
