FCM Consulting Insights Report Snapshot
Trends & Strategies for H1-2026
Welcome to the snapshot version of FCM Consulting’s all-new Insights Report for H1-2026. It’s short enough to read in one sitting but rich with the information you need. This bi-annual report provides strategic forecasts and actionable strategies to manage shifting market dynamics around availability, costs, and demand.
Along with hotel and aviation trends, the edition also focuses on two trending topics. The transformative potential of artificial intelligence (AI) and the implications of geopolitical instability on corporate travel. We hope you enjoy this shortened down version of the report and find it a valuable resource to support your corporate travel program.
Shifting traveller and corporate priorities
- Economic pressure is pushing budgets, flexibility, and value to a new level of scrutiny.
- Sustainability expectations are tightening with green credentials and measurable initiatives no longer optional.
- Technology is rewriting the hotel experience as automation, personalisation, and connectivity become the new baseline.
- Traveller experience is evolving, with wellness, culture, and bleisure taking centre stage.
The AI opportunity in managed travel
Say a traveller’s connecting flight to a critical meeting is cancelled. The airline rebooks them on a flight late the next day (after the meeting time). But imagine if, within minutes, an AI-driven system could rebook the traveller on an earlier flight, secure a hotel, update their itinerary, and alert both traveller and manager. That’s the kind of operational shift being explored in business travel.
- AI automates repetitive tasks so people can focus on work that needs emotional intelligence.
- AI can flag potential disruptions early, like spotting storms and suggesting reroutes.
- The case for AI must connect to measurable outcomes but also look beyond ROI calculations.
- Some AI returns can’t be easily measured, like reducing the time your people spend stuck in airports, so they can spend more time with clients.
AI will never replace the human side of travel management. AI can crunch data, but it can’t build relationships, negotiate with suppliers, or understand the cultural nuances that affect travel behaviour. In moments of crisis, empathy and human judgement are irreplaceable.
Geopolitical instability and its impact on managed travel
What do you do when a flight path suddenly closes while your travellers are in the air? For many travel managers, scenarios like this are no longer hypothetical. Geopolitical conflict, cyber threats, and natural disasters make disruption inevitable, the real question is, how prepared are you?
Five questions to stress-test your readiness
Global aviation insights
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Global demand climbs 5.8%
Passenger traffic is up globally, driven by strong growth in Europe, Latin America, Asia-Pacific, the Middle East, and Africa. North America, however, is holding steady due to trade policy and broader macroeconomic conditions.
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Ticket prices take a 3-4% dip
Compared to 2024, business class fares have fallen by 4%, while economy fares are down 3%. Travellers are seeing more value, even as demand climbs.
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Ancillary revenue reaches $150billion
While the base fare remains the core for airlines, ancillary spend is an enormous revenue-generating stream. In 2024, airlines generated $150billion in ancillary revenue, an increase of $32bn from 2023.
Global hotel insights
Revenue management tension will continue to be a significant factor in the 2026 hotel request for proposal (RFP) season. The global hotel corporate market is showing resilience and adaptability, using enhanced data and technology to manage their pricing strategy on a daily basis, and maximise every room sold. Hotels are encouraging corporate customers to dynamic pricing and away from the security of fixed, last room availability (LRA) pricing. Requesting fixed rates in key properties is still an option, but dynamic rates can be a useful tool to add value throughout the year. In short, travel managers need robust strategies moving into 2026 to maximise value through their hotel programme and booking behaviours.
These airline patterns are replicated in New Zealand, with an average purchased fare increase of 18% on key routes. Meanwhile, regional travel in Australia remains expensive, something the mining, agriculture, government, and construction industries know well. With limited airline competition in both countries, rises are hard to avoid, and corporates are unlikely to see broad-based discounts.