Corporate travel buyers are spending, but cautiously. The Global Business Travel Association (GBTA) Business Travel Outlook Poll found that 63% of travel professionals are optimistic about the industry outlook, up from 41% in April 2026, but 69% of corporate buyers named rising costs as the top influencer of how they plan their travel. Travel management companies and suppliers (42%) have said that customers are pressing them to reduce pricing and fees – companies and consumers want to travel but every trip has to prove its worth[1].
South African companies are feeling this pressure more than most. The economy grew 0.5% in the first quarter of 2026 and economists expect the full impact of higher fuel costs from the conflict with Iran to land in the second quarter of the year[2]. This means tighter budgets, longer approval chains and an expectation that suppliers need to still deliver high value travel experiences within even smaller margins.
Under that kind of pressure, most companies’ instinct is to buy on price. Around 60% of travellers, travel managers and CFOs say budget cuts usually arrive as small rules applied to every trip, such as requiring the lowest fares[3]. However, the cheapest ticket usually ends up costing more – 72% of business travellers hit by disruption in 2025 had to rebook on the move at an average of 27% more than the original booking price[4]. Corporate travel tenders often follow the same process with procurement teams setting a list of minimum requirements and the lowest price that meets them usually wins.
This puts travel management companies that have invested in features and solutions, often well above what a tender asks for, in a difficult position. Clients want premium capability at an economy price and once they see the full platform at the presentation stage, they want all of it at a competitor’s lower rate. Sales teams hungry for new business often agree and a year later, the account is running at a loss. The provider then has to renegotiate or walk away. The other layer is, of course, that dropping the price has also told the buyer that the product was overvalued in the first place. Neither outcome builds a lasting relationship.
Says Morné du Preez, CEO of Tourvest Travel Services (TTS): “We have tackled this by making TTS’s solution/s fit for purpose – it only made sense to make our technology stack more modular. In a first-of-its-kind solution, the Travel IT platform is now split into different elements that are priced separately. This means agencies can choose from a range of solutions that allow them to meet competitive tender requirements, but within a narrow band of capabilities.”
“They can select consultant-led or call centre service or a self-service model that allows travellers and bookers to make their own arrangements. When clients arrive with a fixed budget, elements can be removed until the solution meets the price and then can be added back further down the line as expectations and budgets change.”
He adds that a modular approach to travel allows companies to invest in savings that carry across the value chain. “An agent can invest in an expense management module that consolidates trip information and sends it to the ERP and back-office systems, removing the need to reconcile expenses manually, for example.”
AI is also proving an invaluable value-add for many systems as it takes up a significant percentage of the heavy lifting. “Instead of receipts being manually entered into the system, travellers can photograph a receipt that’s read by the system and matched instantly to the claim. Anything that doesn’t match is flagged for review. This removes typing errors that can add a digit to a claim (or drop one) and speeds up the approval process,” says du Preez.
Modules can also be used to enhance other aspects of travel management. A procurement module handles non-travel purchases from consumables to PCs and combines the client’s own negotiated rates with wider group pricing. Investing in this level of granular client support also allows travel companies to diversify their client offerings. They can offer more than bookings, which means they can keep serving clients when travel volumes fall or are disrupted.
“The Tourvest modular technology stack can be white labelled as well, giving travel companies access to a complete client offering that sits under their branding,” adds du Preez. “Employees see it as the company’s travel programme and use it to create customised packages that are more in line with customer requirements.”
Travel agencies continue to face uncertainty and disruption. Since 2020, global travel has not settled down or gained as much momentum as customers and companies remain cautious in the face of rising geopolitical uncertainty. Spend is tight but speed and agility are essential. Technology offers a smart way through the complexity with modular stacks that fit specific needs and can be adjusted to fit the demanding customer. Corporate travel puts total value ahead of ticket price and companies expect flexibility as standard, so providers that let clients build what they need at a price both sides can sustain will keep them through the good years and the mercurial ones.
Contributed articles reflect the views of their authors, not Africa.com.