A report from FCM Consulting, a division of FCM Travel, pinpointed four “strategic gaps” faced by travel managers in its Insights Report: Trends & Strategies for H1-2027. The report examines the cost pressures, evolving AI capabilities and risk management considerations shaping the business travel industry, while also providing strategic forecasts for the months ahead.
“Every business trip is an investment in a customer, a deal or a team,” said Jo Lloyd, chief customer officer. “When travel managers can show senior leaders why each trip happens and what it delivers, managed travel is seen as a strategic asset, and it’s easier to invest in the trips that matter.” Her company’s job, she said, “is to help clients build that case.”
The four strategic gaps identified in the report include:
- The Articulation Gap: Standard travel reports track cost and compliance without recording why people travel, making it difficult to demonstrate how the budget supports company goals. To close this gap, FCM Consulting recommends adding a short list of trip purposes to the booking process, using terms the business already recognizes. This allows companies to report spend against business priorities and establish policies that reflect the purpose of each trip.
- The AI Governance Gap: AI is moving from experimentation to everyday use, and governance policies need to keep pace. Enforcing travel policy is challenging even without AI, so companies should not rely on AI to interpret rules on its own. Felicity Burke, strategy lead, said, “A strong approach is fail-safe by default: When there isn’t a compliant option, AI should stop and pass the decision to a person.” The report advises buyers to ensure their contracts specify how AI use is monitored, who reviews its decisions and who is responsible if it makes a mistake.
- The Contracted vs. Real Gap: A negotiated rate delivers savings only when travelers actually book it. FCM data shows 42% of American travelers book outside policy, while only 56% use approved tools. Hotel rates with last room availability (LRA) are available 60%-85% of the time, compared with 25%-50% for non-LRA rates. As hotel rates begin to level off, companies have a clearer opportunity to identify where they may be paying more than the market rate. “The actual rate achieved is the best measure of how well a negotiated rate is performing in the program,” said Rachel Newns, global hotel practice lead.
- The Disruption Readiness Gap: Disruption is an everyday reality of business travel, making preparedness essential. Middle East seat capacity is down 10.7% this year, nearly a quarter of European flights were late in 2025, and US on-time performance was at its worst since 2014. The EU’s Entry/Exit System has also added airport queues at participating airports, with processing times increasing by as much as 70%. “Before they set off, travelers should know how to rebook and who to contact if something goes wrong,” said Juan Antonio Iglesias, strategic advisor, market intelligence. Newns also noted that hotel booking is largely unmanaged, making it harder for companies to know where their travelers are, and that companies should treat compliance as a risk measure as well as a financial one.
The report also examines shifting pricing dynamics across the airfare and hotel sectors. Global economy airfares are up around 21% so far this year, and FCM Consulting expects fares to continue rising into 2027 as airlines pass on higher fuel costs. Hotel rates offer some relief, with global average room rates easing to $216 in the third quarter of 2026, just 0.9% above the same period last year, following a five-year high of $223 in the second quarter. These contrasting trends, said the report, underscore the importance of actively managing travel costs and identifying opportunities to capture greater value from business travel.
Source: www.businesstravelexecutive.com
