As the new US administration takes office in 2025, its policies are poised to shape the business travel landscape in significant ways. With a focus on deregulation, economic growth, and national security, businesses will need to adapt to evolving priorities and opportunities. Here’s an overview of what business travellers and organisations can expect.
Deregulation and Industry Flexibility
A hallmark of this administration's governance is deregulation, which is likely to impact the travel industry by reducing compliance burdens for airlines, travel technology providers, and payment systems. According to CellPoint Digital, deregulation in the payments space could enable airlines to save up to $5.6 billion annually by simplifying transactions and adopting more efficient payment systems. Additionally, it is estimated that travel payment providers could increase their revenue by up to 7% by leveraging advanced orchestration services and reducing friction in payment processes. This could foster innovation, enhance service offerings, and lower costs for business travellers. However, reduced oversight might also introduce inconsistencies in service quality and safety standards.
Immigration and Border Policies
The current US leadership is expected to maintain stringent immigration and border control measures. According to recent industry surveys, 64% of business travellers consider visa delays and stricter border controls as major challenges to seamless international travel. While these policies aim to strengthen national security, they could complicate international business travel with stricter visa requirements and heightened scrutiny at entry points. Companies should be prepared to manage additional administrative demands for international trips.
Trade Relations and Economic Policies
A continued emphasis on America-first trade policies could influence global business travel trends. While efforts to bolster domestic industries may limit outbound travel opportunities, strengthened bilateral agreements with select nations could drive regional business travel growth. In 2024, international business travel accounted for approximately $300 billion in global revenue, and new trade agreements could further expand this market. Organisations will need to monitor trade developments closely to identify emerging markets and opportunities.
Infrastructure Investments
The administration has previously championed infrastructure development, and further investments in airports, highways, and transportation systems are anticipated. According to the American Society of Civil Engineers, the US requires over $2.6 trillion in infrastructure investments by 2030 to maintain and modernise critical systems. These improvements could streamline business travel logistics and enhance the overall traveller experience. However, funding challenges may affect the pace and scope of such projects.
Limited Focus on Sustainability
Environmental concerns are unlikely to be a top priority under this administration's leadership, potentially resulting in fewer regulations targeting carbon emissions. However, the global business travel sector has seen a 19% rise in companies committing to net-zero targets over the past two years. This trend highlights that many businesses are taking independent action to prioritise sustainability. To address the environmental impact of this shift, organisations can integrate carbon offsetting into their travel strategies. ITG offers comprehensive carbon offsetting solutions, enabling businesses to support initiatives such as renewable energy projects, reforestation efforts, and energy efficiency programmes. By leveraging ITG’s expertise, companies can balance their carbon emissions while reinforcing their commitment to sustainability.
Public Health and Travel Protocols
The administration’s approach to travel protocols is expected to prioritise minimal restrictions to encourage economic activity. In recent surveys, 73% of business travellers indicated that consistent and simple travel protocols were critical to their decision-making process. This could result in fewer regulatory barriers, making it easier for businesses to conduct travel operations efficiently.
What This Means for Business Travel Management
The policies of the present administration will likely bring both opportunities and challenges for business travel. Organisations must remain agile, focusing on compliance, cost-efficiency, and strategic planning. By embracing innovations in payments and leveraging deregulation-driven savings, companies can optimise their travel programmes while navigating a rapidly changing landscape.
Partnering with a reliable travel management company like ITG can help businesses navigate these changes, ensuring smooth operations and optimised travel programmes.
Stay connected to the ITG blog for updates and insights on how political shifts impact business travel.
