SAP Concur forecasts 2025 trends in travel management tech

SAP Concur has outlined its predictions for travel and expense management in 2025, highlighting key trends and challenges facing businesses in the sector.

According to Chris Juneau, Head of Market Strategy at SAP Concur, companies are expected to make significant investments in digital systems and security infrastructure over the coming years. "Companies in 2025 will invest in innovative new solutions such as process automation and generative AI to support growth," Juneau stated. He noted the delicate balance businesses must maintain between catering to stakeholder demands and addressing security risks, emphasizing that tech innovation and security will be top priorities.

Juneau also anticipates increased pressure on travel budgets as employees return to the office, leading to a rise in business travel volume. "With inflation slowing, businesses have an opportunity to extract more value from travel investments," he remarked. However, he cautioned that financial controllers will face mounting pressure to optimise travel and expense (T&E) budgets while upholding compliance and visibility in their travel policies.

Another prediction sees the transformation of traditional expense reports into exception reports by 2025. As various job roles increasingly integrate AI into their operations, the automation of routine tasks such as transaction validation will become more prevalent. "Automations will handle mundane tasks and help travel managers deliver in-depth audits with ease," said Juneau. This shift will enable managers to focus on identifying fraud and errors, which specified reports will help highlight.

Despite the rapid development and adoption of AI technology, Juneau suggests that employees will maintain a healthy degree of scepticism toward its use in business processes. He referenced a survey from SAP Concur, stating: "According to the 2024 SAP Concur Global Business Travel Survey, 95% of business travelers would consider using AI-powered automation to support their tasks." However, AI will initially function as an assistant rather than a complete solution for tasks like booking travel or submitting expense reports.

Lastly, SAP Concur predicts a growing demand for improved user experiences in travel management systems, owing to rising business travel. Juneau said that "2025, we anticipate greater demand for real-time updates on disruptions," reflecting travellers' increasing expectations for support in navigating issues like extreme weather and geopolitical conflicts. This demand for a more comprehensive duty of care is expected to drive organisational strategies in the new year.

Juneau emphasized the importance of perfecting the balance between competitive T&E investments and safeguarding data and security as organisations project their strategies for 2025. He concluded, "2025 will be the year of practical implementation," where the focus will remain on executing plans that protect businesses' interests while adapting to continuing digital and technological advances.