Companies Need to Budget for Increases in their Business Travel Spend – but the ROI is still there
As Air Fares respond (“dynamically” of course) to geo-politics, shrinking capacity and the effect of an increase in oil prices, Paul Spencer, Managing Director of Focus Travel Partnership – the procurement consortium managing the UK’s largest Business Fares Programme for SME and Independent Travel Management Companies – comments on the impact to Companies planning their Travel & Expense Budgets in 2026
If you’re a UK Travel Manager, and even more so if you have responsibility outside the UK for your company’s programme, you’ll need to budget for an increase in what you spend on air fares – or start to look at other ways to reduce your exposure; building contingencies into your financial models , working closely with your Travel Management Company (TMC) to determine the optimal ticket types/booking windows and to keep a close eye on geopolitics – a task that’s quickly becoming a standard element of a Travel Manager’s role.
First of all, a practical observation. The current crisis is a fluid one, and it won’t affect everyone. Or every route. Not even every carrier’s pricing. But the effect of the Middle East crisis will continue to ripple globally across the airline sector for some time to come and whilst there is nothing we can do to change that; there are some small adjustments that a UK company looking to project its business overseas can immediately do to manage and incorporate into its travel programme.
Airline costs are increasing and these will inevitably be passed on to consumers (B2C and B2B) whether through ad-hoc “fuel surcharges” due to longer flightpaths or alternative routings (some of which additional charges, based on Focus Data over the last 7 days, are already 100%+ higher than usual) or though the impact of ‘dynamic pricing’ as inventory shrinks (some 10% of international airline capacity has been withdrawn). And to state the obvious, long-haul fares will be affected more than European short-haul.
If a company takes recent comments from US carriers at face value and as indicative of the global price trajectory then Travel Managers everywhere need to build in an increase to their Travel Budgets. Some airlines, particularly those who benefitted from low oil prices in 2025 may try to swallow the impact on their profits for a while. Some have already stated their results will be affected (a not unreasonable warning of price rises to come). And one maintains that fares are currently protected – mainly due to their effective “fuel hedging”.
Some corporate clients may be able to pass on increased costs to their own customers when working on ‘cost plus’ contracts or where Project work allows but for companies who travel for their own business development, internal meetings, client engagement or to attend conferences, these are costs they will have to swallow.
TMC Middle East Operations
At the outset of the crisis, Focus Travel Partnership had already set up a ‘Middle East Operations Hub’ to keep all our Travel Partners appraised of any airline’s change in terms and conditions, and the support available, within hours of the crisis. We continue to consolidate updates almost hourly from over 75 global airlines. And our TMC Partners remain, with our help, the best source for the most competitive fares and for experienced support when a business client has to change their plans. Our 25 year history of working in partnership with airlines during crises, and of supporting the TMC channel, remains the optimal combination for a company looking to control costs.
But we’d like to warn against pessimism. Travelling for business remains an essential part of the UK’s international trading footprint and as long as your business doesn’t currently require access to (or through) major Gulf hubs including Dubai, Doha and Abu Dhabi, and has had to re-route personnel at a greater cost than before, business travel continues to demonstrate an ROI unmatched by many other investments.
If you were going to book, still book. If you were going to go, still go. Just ensure you’re using a Travel Management Company who understands your requirements, can source the best options, re-book, manage your refund and act on your behalf if plans need to change, all whilst ensuring duty of care and traveller safety.
About Focus Travel Partnership
Focus Travel Partnership is the leading UK business travel consortium for the independent and SME sector and represents 45 Travel Management Company (TMC)
Partners with a total turnover of over £1billion. Focus leverages advanced technology platforms and a comprehensive suite of services to support its TMC Partners, enabling them to future-proof and grow their businesses. The collective size and buying power of the partnership, along with its long-established industry leading corporate air programme, enables Focus to negotiate the best possible commercial deals with suppliers across all sectors. The continued strength of Focus Travel Partnership – reflected in its TMC Partner community, extensive supplier network, and buy-in from all major global airlines – remains unmatched by any other UK consortium. For more information, please visit https://focustravel.uk/
For media information, please contact: Joanne Emerson, Head of Marketing & Events / e: JoanneE@Focustravel.uk / t: 0203 978 4942