Business travel is entering a new era of reinvention, where economic uncertainty, changing traveler expectations and rapid artificial intelligence (AI) adoption are reshaping how companies move their people. Phocuswright’s U.S. Corporate Travel Landscape 2025: Market Size, Policy and the Impact of AI captures the forces that will define success for travel leaders in the years ahead.
Market recovery with uneven momentum
The U.S. travel market is expected to grow 2% in 2025 to $506.8 billion, but managed corporate travel tells a more complex story. After a 3% gain in 2024, corporate travel gross bookings are projected to dip 1% in 2025, before returning to 3%-4% annual growth by 2026, ultimately surpassing $407 billion by 2028.
The demand picture is uneven: small- and medium-size businesses (SMBs), group bookings and meetings are strong, while large corporate bookings have stalled, reshaping supplier strategies and negotiating dynamics.
AI moves from experiment to essential
AI is no longer an emerging trend—it’s becoming core to business travel operations. More than half of business travelers now use AI to shop and book trips, as generative and agentic tools simplify planning, rebooking and expense management.
For travel managers and suppliers, this means greater efficiency and personalization—but also pressure to adapt policies, capture data and maintain control of costs.
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Policy, autonomy and the bleisure effect
As the lines between business and leisure blur, companies are balancing policy compliance with traveler autonomy. High compliance rates mask the reality that price, convenience and loyalty perks often motivate off-policy bookings, risking data gaps and reduced negotiating power.
Meanwhile, travelers continue to prioritize well-being and flexibility, from healthy food and fitness access to managing jet lag and work-life balance.
Why it matters for travel leaders
The managed corporate travel market sits at a strategic inflection point.
- Suppliers must navigate an environment where growth depends less on big corporate contracts and more on SMBs, meetings and hybrid travel.
- Travel managers need to rethink policy enforcement and technology investment to harness AI without losing oversight.
- Investors and innovators should view AI-driven tools and changing traveler behavior as signals for where to build and bet next.
Phocuswright’s U.S. Corporate Travel Landscape 2025: Market Size, Policy and the Impact of AI
This report is part of a comprehensive market sizing exercise and consumer research study sponsored by UATP and BWH Hotels.