New York, NY (September 24, 2025) – FCM Consulting, a division of leading travel management company FCM Travel, today released a new Insights Report, providing a comprehensive and detailed analysis of the key trends shaping the business travel industry, along with strategic forecasts for the remainder of 2025 and beyond. 

Amid ongoing geopolitical tensions and shifting economic policies, the biannual report explores their continued impact on corporate travel. As these challenges persist, FCM Consulting experts offer timely, actionable strategies to support sustainable growth in a fast-evolving industry. The report also examines the transformative potential of artificial intelligence and presents ways to integrate AI into corporate travel programs.

“To navigate this environment, businesses must incorporate flexible, real-time analytics into their forecasting methods, enabling strategies that respond swiftly to emerging trends and unanticipated changes,” said Ashley Gutermuth, Head of FCM Consulting, Americas. “We believe this approach, as outlined in our report, can help ensure that organizations remain resilient and competitive, despite the uncertain landscape.”

Given today’s increasingly complex conditions, the report leverages FCM’s proprietary booking data to analyze how these trends are influencing costs, availability, and demand across the airline and hotel sectors. From January to May 2025, global business class airfares dropped by an average of $119 (-4%), while global economy class fares declined by $18 (-3%), compared to the same time period last year.

Furthermore, global air travel demand rose 8.1% year-over-year as of May 2025, while the global passenger load factor (PLF) remained steady at 80.2%, a modest increase of just 0.7% year-over-year. In North America, demand remained the same, due in large part to new trade policies and broader macroeconomic conditions. The PLF in North America was 81.4%, a slight decline of 1.4% compared to last year.

On the accommodation front, hotel rates in North America increased by $46 to reach an average of $281 from Q1-25 to Q2-25, which was driven by rising demand, particularly around conferences, trade shows and customer meetings. Despite lower occupancy levels, hotels are experiencing higher operational costs, causing them to keep rates elevated. Some of the cities seeing the largest quarter-over-quarter rate increases include Chicago (+39%), New York (+29%), Vancouver (+25%), while Los Angeles experienced one of the biggest declines (-12%).

Gutermuth added, “Even in uncertain times, business travel remains a vital driver of growth for many companies. The difference now is that spending is approached with more strategy. For those who invest wisely, business travel continues to be not just a cost, but a catalyst for long-term success.”

About FCM Travel

FCM is one of the world’s largest travel management companies and a trusted partner for thousands of national and multi-national organizations, including many household brands, Fortune, and FTSE 100 companies. With a 24/7 reach in 95 countries, FCM’s agile and flexible technology anticipates and solves client needs supported by expert teams who provide in-depth local knowledge and duty of care as part of the ultimate personalized business travel experience. 

As the flagship corporate travel arm of Flight Centre Travel Group, FCM is able to deliver some of the most competitive rates, unique added-value benefits, and exclusive solutions for its clients to support their business travel requirements. A recognized leader in the travel tech space, the company has debuted several proprietary client solutions over the last 12 months including a new omnichannel platform featuring a "first of its kind" customized end-to-end user experience and FCM Booking, an innovative option to traditional OBTs. 

Alongside its travel management services, the company provides specialist services through FCM Consulting and FCM Meetings & Events to service broader needs of clients. Discover the alternative at www.fcmtravel.com.