40% of Canadian businesses boosting travel budgets despite instability: survey

Despite ongoing concerns about inflation, tariffs, and shrinking profit margins, 40 per cent of Canadian small and mid-sized businesses plan to boost their business travel spending in 2025 compared to last year.

That’s according to a new nationwide YouGov survey commissioned by Corporate Traveller Canada, the business travel arm of Flight Centre Travel Group.

While many Canadians are tightening their personal budgets, 42 per cent of these businesses say they’ll increase their travel budgets—highlighting the continued importance of face-to-face meetings, new business development, and maintaining strong team connections.

This trend is reflected in Corporate Traveller Canada’s own data, which shows a six per cent rise in domestic and international business travel bookings in the first quarter of 2025 versus Q1 2024, led by clients in the professional services, mining, and manufacturing industries.

“Our data shows that 55 per cent of Canadian SMEs worry the inflation rate will increase over the next 12 months, yet most aren’t pulling back on travel,” said Chris Lynes, managing director for Flight Centre Travel Group Canada, in a press release. “Instead, they’re optimizing how they travel, leveraging cost controls, smart policies and technology so they can stay agile without sacrificing business growth.”

Additional survey insights

Canadians fear repercussions of inflation

Almost three in four (70%) Canadian SMEs fear that inflation will affect their business’s ability to afford corporate travel.

Demand for corporate travel reaching new heights

More than four in five (82%) SMEs believe demand for corporate travel will be the same as or higher than pre-pandemic levels over the next 12 months.

Majority of SMEs think corporate travel remains viable

Taking the current and forecast inflationary environment into account, 15% of SMEs say travel remains highly viable (little to no change) and almost half (48%) say it’s viable, though some reduction may be necessary.

Savvy businesses taking steps to manage travel costs

Over the past 12 months, 84% of Canadian SMEs have gotten smart about where they spend their travel budget—but only 30% have reduced travel frequency.

• Opted for cost-effective options (economy class, budget accommodations) - 32%
• Encouraged or mandated advanced bookings to secure lower rates - 28%
• Reviewed and optimized travel policies - 27%
• Set stricter travel expense limits and budgets - 25%
• Negotiated discounts with airlines, hotels or car rental companies - 24%
• Implemented an approval process for all travel requests - 24%
• Used data analytics or technology (e.g. AI-based tools) to monitor and control travel expenses - 21%

Flight costs down year over year

While prices for essentials remain elevated—they rose by 3.8 per cent in April 2025 compared to April 2024—"Canadians are getting a temporary financial reprieve when it comes to the cost of airfare,” says Corporate Traveller.

In March 2025, prices fell 12 per cent YoY. That decrease remained low for April 2025, at a YoY drop of 5.8 per cent.

“This drop enables businesses to reinvest in travel without absorbing additional cost pressure. With global tariff tensions rising and supply chains in flux, businesses are using travel as a strategic tool to safeguard growth and strengthen key partnerships,” says Corporate Traveller.

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