Global business travel is facing a dual challenge as soaring fuel costs and Middle East airspace closures force a rapid recalculation of corporate travel strategies.
While the industry remains resilient, travel management companies (TMCs) are seeing a shift in how companies prioritise routing and risk management to ensure business continuity.
“Beyond safety considerations, there is limited inventory available on Middle Eastern carriers, as much of the region’s airspace remains closed,” noted Sharifah Alhabshi, BCD Travel’s senior director for programme management in Asia-Pacific. “As a result, travellers are routing via other carriers.”
Vicki Parris, managing director of FCM Travel, South-east Asia & Japan, shared that the TMC is “seeing travellers opt for direct flights on carriers” that can provide better connectivity.
Meanwhile, Eugene Tan, general manager for South-east Asia at Trip.Biz, noted that travel managers are increasingly requesting platforms that offer “full itinerary visibility” to allow for quick changes or cancellations in response to evolving risks.
“In this environment, travel managers are also comparing a wider range of routing and airline options… to maintain policy compliance, cost control and traveller safety,” he added.
Industry leaders also suggest that traveller safety has moved from a secondary priority to an absolute requirement, and is where Asia-Pacific’s stability will prove to be an advantage.
Parris highlighted that the region’s reputation is a significant factor right now, as companies have always prioritised “destinations with robust health, safety, and geopolitical stability measures”.
Alhabshi echoed this, describing safety not as a currency, but as an “essential baseline requirement that companies and destinations must meet to sustain trust”. She pointed out that the perception of stability in Asia-Pacific has made the region significantly more attractive for business travel.
Despite fuel prices hitting record highs, the expected downgrade in travel classes or widespread cancellation of events has yet to materialise.
“We have seen in the past that corporates tend to take a wait-and-see approach to events and conferences – with them more likely to switch location than simply cancel,” said Parris. She also noted that while clients are more prudent with spending, they are not necessarily making class changes – such as dropping from Business to Premium Economy – because companies continue to value traveller well-being.
When asked about fuel price impact on business travel spend, Tan explained that it varies according to the negotiated rates that companies have with airlines based on minimum volumes. He noted that because fuel surcharge exposure varies, multi-source access to airlines ensures full visibility into available inventory and pricing.
According to Tan, this is a benchmark for TMC effectiveness. Trip.Biz connects to multiple GDS platforms, allowing it to offer direct airline connections, more than 34 NDC connections, more than 150 Trip.Biz exclusive fares and extensive OTA inventory, reaching sources that traditional players cannot access with single-GDS reliance.
Tan concluded: “Business travel continues to thrive – companies travel where there is a clear business need, but they are paying closer attention to routing, class of travel, and overall trip cost.”
