Measuring ROI of Business Travel in 2025: A Critical Challenge

Wednesday, January 29, 2025

As businesses strive to balance financial efficiency, sustainability, and employee well-being, the return on investment (ROI) of business travel has become an increasingly critical yet complex metric.

The push for cost-effective, purpose-driven travel reflects evolving corporate priorities in a post-pandemic world where virtual collaboration competes with in-person meetings.

This shift is driving companies to rethink how they measure and justify travel expenses.

The Importance of ROI in Business Travel
Business trips serve diverse objectives, from closing deals with clients in China to attending conferences in Miami to expand partnerships. In 2025, travel ROI involves not only financial returns but also social and environmental impacts.

According to the U.S. General Services Administration (GSA), aligning travel with strategic goals is essential for optimizing budgets while meeting sustainability targets.

“The landscape of business travel has evolved significantly, making ROI measurement more critical and complex,” says Raphael Pasdeloup, Senior VP of Global Customer Management at CWT. Companies are leveraging tools like pre- and post-trip evaluations to quantify financial returns, such as contracts secured or clients retained. However, challenges remain, including siloed data and the absence of universal standards.

Key Challenges in Measuring ROI
Data Integration:
Many organizations struggle with fragmented data. Travel costs often reside outside core systems like ERP and CRM, making it difficult to link expenses with outcomes. The U.S. Department of Commerce emphasizes the need for integrated systems to enhance travel efficiency and accountability.

Purpose-Driven Metrics:
ROI varies depending on the trip type—internal meetings, training, client engagements, or marketing events. Defining success factors for each purpose is essential. As Kerry Douglas, Head of Programme at the UK’s Institute of Travel Management (ITM), notes, “Not all trips have immediate financial returns, requiring tailored data points to measure impact.”

Limited Managerial Involvement:
An ITM survey revealed only 31% of travel managers influence ROI decisions. Without active involvement, connecting investment to outcomes remains a challenge.

The Role of Technology and Sustainability
Advancements in AI-powered analytics offer solutions to improve ROI calculations. These tools integrate financial, social, and environmental data, aligning with the Environmental Protection Agency (EPA) guidelines on reducing carbon footprints. With corporations prioritizing Environmental, Social, and Governance (ESG) goals, sustainability now plays a pivotal role in determining travel ROI.

“Each trip now faces dual evaluation: financial return and environmental impact,” says Pasdeloup. Strategies like trip batching, sustainable travel options, and virtual alternatives are becoming standard.

Reframing Business Travel
Companies are shifting from a cost-based to a purpose-led approach. Katie Virtue, Head of Sales at Festive Road, advocates for evaluating travel through “return on objectives” (ROO), linking travel program goals with broader corporate objectives.

Michael Friedrich, CEO of Tagtu, emphasizes the need for leadership support: “Travel managers must transition travel programs to align with strategic goals, focusing on ROI rather than cost-cutting.”