Why Enterprise Travel Costs Spiral Out of Control

Enterprise travel budgets are growing, yet much of that spending leaks away before anyone notices, through unused airline credits, bookings made outside approved channels and expenses that never reach the travel program. The list goes on.

The challenge is becoming more urgent as the cost of business travel continues to rise. According to the 2027 Global Business Travel Forecast, from GBTA, in partnership with ALTOUR, global blended airfares are projected to rise 4.7% in 2026, hotel rates 3.7%, and ground transportation costs 3.6%., Growth is expected to slow in 2027, but prices are not expected to return to pre-2026 levels.

If you manage a corporate travel program, every source of leakage now costs more than it did just a year ago.

Key Takeaways: Why Enterprise Travel Costs Spiral Out of Control

• Unused airline credits can quietly expire, taking recoverable value with them Booking leakage occurs when travelers book outside approved channels often because the managed tool doesn’t show the fares or inventory they want
• Out-of-policy expenses often go undetected because booking, card, and expense data sit in separate systems
• Connecting booking, payment and expense data helps finance teams spot and act on cost gaps sooner, proactive monitoring and AI-driven alerts can help reduce expired credits, rogue bookings, and compliance failures
• Managing travel, meetings and events together improve visibility of total spend and strengthens buying power

The Hidden Drivers Behind Runaway Enterprise Travel Spend

Travel managers today face a double challenge: operational leakage and structural inflation. While unused credits, booking leakage, and policy violations continue to drain budgets, suppliers themselves are operating with higher costs. The GBTA forecast identifies persistent labour shortages, aircraft delivery delays, sustainable aviation fuel mandates, and lingering geopolitical uncertainty, as long-term cost pressures that are unlikely to disappear in 2027. As a result, every missed saving opportunity becomes more significant.

1. Unused Airline Credits That Quietly Expire

Cancelled non-refundable tickets convert into airline credits, usually with a 12-month expiration window. Without centralized tracking, those credits sit scattered across airline profiles and booking tools until they quietly expire.

The stakes are higher because airline ticket prices themselves are increasing. The pricing forecast projects global blended airfares will rise from $722 in 2025 to $756 in 2026, and $767 in 2027. Premium fares are forecast to rise even faster, by 9.5% in 2026 . When credits expire in a rising-fare environment, companies are not only losing the original ticket value but also facing higher replacement costs.

ALTOUR’s AI Insights tool gives centralized visibility of unused credits and upcoming expiration dates, so travel teams can apply credits to new bookings before the value is lost.

2. Booking Leakage Through Unapproved Channels

Booking leakage happens when travelers book flights, hotels, or ground transport outside the managed program. One of the most common causes we see clients coming to ALTOUR, is a booking tool that doesn’t show competitive fares or regional inventory, so travelers look elsewhere.

This gap erodes negotiated hotel rates and weakens your negotiating position during contract renewals. ALTOUR brings content from GDS, NDC, and direct supplier connections into one booking flow, giving travelers no reason to look elsewhere.

Leakage also becomes particularly expensive during periods of constrained airline capacity. The pricing forecast notes that the global aircraft backlog now represents roughly 60% of the active fleet, creating ongoing fare pressure across major markets. When travelers book outside managed channels, organizations lose visibility into preferred inventory and negotiated agreements at precisely the time when capacity is tightest and prices are rising fastest.

3. Out-of-Policy Spend Hidden in Expense Reports

Out-of-policy spend often looks like a hotel incidental filed under “miscellaneous” or a rental car surcharge reimbursed on a personal card weeks later. These transactions rarely flow back through the TMC.

These out-of-policy expenses stay invisible to your travel spend tracking until reconciliation, often months after the cost was incurred. The result is inflated program costs that compliance reports can miss.

ALTOUR’s open technology ecosystem can integrate with your HR, ERP, and expense tools, helping match transactions to a bookings so hidden spend surfaces sooner.

4. Fragmented Data Across Disconnected Systems

Your TMC captures bookings via agents or online booking tools, your corporate card captures payments and your expense system captures claims. Each tells a partial story.

When those data streams are not connected, leakage hides in the gaps. A booking cancelled then rebooked directly with the airline, shows up as a payment with no matching reservation. A cab ride filed under “other” is never classified as travel spend.

ALTOUR helps build a connected technology ecosystem around your program, bringing booking, payment and expense data together so your finance team sees the full picture.

5. Weak Policy Enforcement at the Point of Booking

Travel policies work best when applied before purchases or bookings even take place, and not flagged afterward. Many booking tools display guidelines but do not block non-compliant selections at checkout. That gap means policy violations are caught in reconciliation, not at the point of spend.

A system that surfaces the compliant option first changes the outcome before approval is needed. ALTOUR booking technology can prioritize options by policy fit, loyalty programs, and price, making the compliant choice the easiest one. Your program keeps control and your travelers keep choice.

6. No Visibility Into Ancillary Fees and Add-Ons

These are the hidden costs that get left unnoticed, we’re talking seat upgrades, excess baggage charges, Wi-Fi fees, and lounge access, all added on after the initial booking. They rarely flow through the TMC and often appear only on the corporate card statement weeks later.

These ancillary charges can add 15 to 30% on top of the base fare for any given trip. Without real-time tracking, they accumulate quietly and inflate your per-trip costs beyond what reports show.

As companies work to offset rising ticket costs, ancillary fees have become an increasingly important part of total trip spend. The GBTA forecast predicts average airfares will remain elevated through 2027, meaning every untracked baggage charge, upgrade, or seat-selection fee, further widens the gap between budgeted costs and actual spend.

7. Manual Processes That Cannot Scale

Spreadsheets, shared email threads, and ad hoc reconciliation might work when your program is small. At enterprise scale, with hundreds of travelers across multiple regions and carriers, manual tracking breaks down fast.

Finance teams spend hours each month chasing credit balances, matching receipts, and classifying expenses. That time is a hidden cost stacked on top of the leakage itself.

ALTOUR’s analytics and AI-driven reporting reduce manual effort by helping teams spot anomalies, potential leakage and expiring credits earlier.

8. Geopolitical Disruptions That Force Last-Minute Rebooking’s

Route cancellations, airspace closures, and regional instability force unplanned itinerary changes. According to a GBTA April 2026 poll, 79% of more than 500 travel professionals surveyed cited geopolitical instability and conflict as a top travel-related risk.

Each disruption creates a cascade of new bookings, cancellations, and credits. Without proactive monitoring, those credits join the pile of unrecovered spend.

The pricing implications of disruption can be substantial. The forecast identifies the 2026 Strait of Hormuz closure as the catalyst for the largest oil supply disruption on record, driving jet fuel costs sharply higher and contributing to forecasted airfare growth of 4.7% globally in 2026. Even if fuel prices ease into 2027, GBTA warns that renewed geopolitical disruptions remain one of the biggest risks to travel budgets worldwide.

ALTOUR’s Duty of Care capabilities support a more proactive response. AI Shield provides traveler risk monitoring and real-time alerts, while AI Predict helps identify potential disruption earlier so travelers and travel teams can consider alternative options.

Meetings and Events: The Spend Outside the Picture

Meetings and events are part of the same cost story. GBTA forecasts the average daily cost per meeting delegate will rise to $263 in 2026 and $267 in 2027, with food and beverage, production and labor driving budgets higher. Yet event spend is often managed separately from travel, so attendee flights, hotel room blocks and ground transportation can fall outside your program’s visibility and negotiated agreements. Managing travel, meetings and events together give organizations a clearer view of their total investment in bringing people together, what is driving cost, and where the opportunities are.

How to Regain Control of Your Enterprise Travel Budget

Cost control in enterprise travel is not a single fix. It requires connecting your booking, payment, and expense data into one unified view, enforcing policy at the moment of purchase, and tracking credits and ancillary charges in real time.

ALTOUR brings this together through an open, intelligent ecosystem, backed by AI and supported by travel experts with decades of experience. If your program is losing visibility into where spend goes, a conversation with our team is a practical first step toward closing those gaps.

For organizations that also run meetings and events, bringing both under one partner extends that visibility across your total investment in bringing people together.

Connect with ALTOUR to see how we can help you build a travel program where every dollar is visible and accountable.

To explore how we can help you, contact us.