How to keep business travel spending down as inflation rises

Last updated: July 2026

The US inflation rate increased to 4.2% in May 2026, its highest peak since May 2023, following months of rises that have driven up the costs of everything from labor and utilities to business travel.

For financial managers and other colleagues looking at upcoming team plans for work travel, this may mean you’re tightening budgets in an attempt to manage and mitigate financial challenges. 

Of course, eliminating business trips isn’t a viable solution for most companies. Meetings, industry events, and client visits remain crucial for growth, making each trip a necessary investment. In fact, the US business travel market was up 1.1% in 2025 to $317 billion, and is set to grow again to $319 billion in 2026.

Finding ways to cut overall spend, and embracing AI-driven spend management solutions, will give businesses the tools to balance savings alongside operational effectiveness. From refining expense policies to encouraging advance bookings and bleisure travel, finance teams can ensure that every trip delivers value without unnecessary financial strain.

Key factors driving up business travel spend

The increasing price of airfares, accommodation, and even food and taxi charges can now make business travel a budget issue for some companies. While inflation itself is at the root of the issue, the knock-on effect on both fixed and variable costs means higher daily expenses for teams working away, and unpredictable price fluctuations, which make it tricky to predict the future cost of a trip you’re planning today.

Variable costs

With the price for a gallon of gas currently at its highest in four years, at $4.50, it isn’t just taxis, ride-hailing services, and car rentals that are impacted. Jet fuel prices have risen so high that some airlines are actually canceling flights due to higher running costs. In turn, this means the remaining flights available for your next business trips go up in price.

Utility prices increasing at the same time means that accommodation providers are themselves facing increasingly expensive overheads, leading to an increase in rates. This isn’t a US-specific challenge, either. With global economic uncertainties, popular international destinations are also seeing prices rise.

Other variable costs you may have noticed creeping up in response to inflation include meals, luggage fees, seat selection charges, Wi-Fi prices, and toll roads. Though these represent small changes individually, when you combine each aspect of a trip – particularly for a group booking – they quickly add up. According to the Food Price Outlook, the cost of eating out in the US has risen by 3.8% from April 2025 to 2026. 

Fixed costs

While your annual travel insurance policies are a fixed commitment, premiums are rising as insurers respond to the increased costs of medical care and travel disruptions. Other fixed costs that are being hit by rising inflation include staffing and administration, with wage demands being squeezed higher, and long-term lease agreements on company cars and fleets being renewed at higher rates. 

Which brings us to what you most need to know: how to keep your costs down despite these changes.

Strategies for managing travel costs amid inflation

Taking a smarter approach to expense management makes it possible to manage travel costs proactively and avoid unnecessary additional spending. Here are some tips on strategies that can help.

Update travel policies

Business travel managers and finance managers should work together to define a robust business travel policy.

This should include who the approved providers are, whether travelers can only fly economy, for example, and any daily allowances. Regular policy updates and feedback from travelers ensure alignment with rising prices and avoid policy violations.

For example, the policy could mandate that business travelers use cheaper public transport, instead of taxis, where possible, not only bringing costs down but also helping with carbon footprint reduction.

Setting spending limits as part of your policy also prevents excessive costs while simplifying approvals. Restrictions on airfare, hotels, or merchant categories help keep budgets in check without restricting necessary travel.

Negotiate with travel partners

Negotiating deals with airlines, hotels, and transport providers reduces travel expenses while ensuring better service. Preferred partnerships offer fixed rates, minimize cost fluctuations, and provide loyalty benefits that enhance the overall travel experience.

For smaller businesses, a lower travel volume can make it harder to negotiate the best deals. That’s where travel and spend management platforms like Perk come in, allowing you to leverage existing partnerships to gain access to better rates.

Book travel well in advance

A great tip for keeping business travel spend down is to book flights and hotels as far in advance as you can. 

The “best” time to book flights isn’t fully predictable, but the general rules are:

• Don’t wait until the last minute

• Book flights 3-9 months in advance for international flights

• Aim to book 1-3 months out for domestic flights 

Set alerts for flight price drops if you do need to book nearer to travel dates, but know that you’ll pay around 30% less for flights if you plan ahead.

Allow for bleisure add-ons

If your team members are interested in extending their work trip, known as bleisure travel, it could introduce the possibility of colleagues flying outside of peak travel periods, saving your company a big portion of overall flight costs.

Studies show that planning journeys mid-week can save you money on both flights and hotels, with many hotels also offering better rates for travelers staying for longer periods.

Use employee feedback to find savings options

Finance teams can look at what those traveling for work did or didn’t care about when on the trip and use this to identify where they can cut costs, and still keep people happy.

For example, perhaps a hotel was booked that included a gym and a pool, but the team didn’t end up using either. This can be taken into consideration next time, and a cheaper hotel with fewer facilities can be booked without a knock-on impact on morale.

Implement virtual smart cards

Smart corporate cards can enhance spend control by limiting spending proactively rather than reactively. They reduce fraud risks, provide real-time tracking, and simplify reconciliation, making them a valuable tool for managing work travel expenses efficiently. Plus, they reduce the number of administrative hours it takes to process travel spend overall – meaning reduced staffing costs in your expense workflow.

How Perk can help control travel spend

Managing the moving parts of company-wide travel spend can mean heavy administrative friction for finance managers. To get a better grip on your travel spend and processes, Perk automates manual work, reduces compliance risks, and unifies your data for audit-ready financial reporting from day one.

AI-driven real-time analytics

Traditional expense tracking often leads to budget overruns, while Perk’s AI-powered real-time analytics provide instant visibility. This allows finance teams to monitor spending as it happens. Automated tools flag unusual transactions, ensuring compliance and cost control before expenses escalate.

Using these AI-powered analytics to track expenses can also save time on Shadow Work, meaning that finance teams won’t have to spend time doing repetitive non-core tasks such as chasing receipts. 

Automated approvals

Manual expense approvals slow down reporting and increase the risk of policy violations. Automation eliminates these inefficiencies by enforcing predefined spending rules and approving expenses in real time. 

This streamlines reimbursement processes and ensures that your employees stay within budget without needing constant manual oversight. Your finance teams can focus on cost-saving initiatives, rather than chasing down receipts and expense reports.

Real-time spending alerts

Travel costs can jump unexpectedly if you rely on outdated reports. Perk's real-time alerts notify finance managers the second a transaction steps outside policy boundaries or breaches a specific budget cap. 

Whether it’s an unexpected price fluctuation in airfare or an out-of-policy hotel booking, this level of transparency ensures cost control without restricting necessary travel. 

Save money on your next business trip

With the right combination of a clear business travel policy, automated card controls, and practical booking considerations, businesses of all sizes can successfully protect budgets from rising inflation.  

Perk provides the real-time visibility, automations, and support needed to eliminate corporate shadow work entirely.  

Costs controlled. Time saved. Productivity boosted.   

Ready to upgrade your company's travel and expense processes? Sign up today for a free demo.