BCD Travel’s Survey Highlights Cost-Containment Strategies in Travel Supplier Management

BCD Travel’s latest survey of 132 global travel buyers highlights the critical role of cost containment in managing travel suppliers. The report underscores the importance of strategies like supplier consolidation, contract renegotiation, and the potential of AI and automation in shaping future sourcing methods.

Survey Findings

BCD Travel conducted a comprehensive survey involving 132 travel buyers from various industries worldwide. The primary focus was to understand how organizations source and manage their travel suppliers. The findings reveal that nearly 70% of travel buyers prioritize cost savings when evaluating travel suppliers. Cost containment remains a central theme, with strategies including reducing supplier costs, managing contract renegotiations, and leveraging technology.

Key Priorities in Supplier Management

When it comes to supplier management, cost savings are the top priority for almost 9 out of 10 travel buyers. Other significant priorities include data collection (38%), compliance control (36%), and supplier consolidation (31%). A quarter of respondents emphasize reducing effort, which may involve simplifying the Request for Proposal (RFP) process or using AI.

Fluctuations in Travel Spend

The survey also sheds light on the reasons for fluctuations in travel spend. In 2025, 42% of travel buyers reported an increase in their company’s travel spend compared to the previous year. This increase was largely attributed to business expansion from new projects, organizational changes, and rising supplier rates. Conversely, 29% of travel buyers experienced a decrease in travel spend, primarily driven by cost-containment efforts amid global economic uncertainty. Factors such as operational declines, shifts to virtual meetings, and travel policy restrictions also contributed to the decrease.

Cost Containment Strategies

To manage costs effectively, travel buyers employ a range of strategies. These include supplier consolidation, renegotiating existing agreements, and using reshopping tools, each of which was used by approximately 40–50% of respondents. Additionally, two-thirds of companies mandate preferred suppliers (64%), while one-third prioritize the lowest rates regardless of supplier status (35%).

Travel supplier agreements vary in their renewal frequency. Hotel agreements are consistently renewed annually by 87% of respondents. In contrast, airline and car rental contracts tend to span longer periods, with 40% renegotiated every 2 to 3 years and around 1/3 reviewed annually. Contract negotiation and management are identified as the most time-consuming tasks, cited by over half of travel buyers (52%).

Future Trends in Travel Sourcing

Travel sourcing involves collaboration across various departments, including travel management, procurement, finance, security, and HR. Third parties are often consulted to assist with travel sourcing. TMC reporting is the primary data source travel buyers rely on to monitor supplier compliance, with 61% leaning on their TMCs and 28% engaging external consultants.

Despite a broad sourcing approach, challenges persist. High costs, rate volatility, fragmented content across channels, complex RFP processes, and technological limitations are significant concerns. Teri Miller, executive vice president of the Global Client Team at BCD, emphasizes the importance of streamlining supplier data throughout the trip lifecycle to provide real-time information and actionable insights, leading to improved budgeting, enhanced compliance, and more assured decisions.

Technological Influence and Future Expectations

The future of travel supplier sourcing is expected to be shaped by technology, particularly AI and automation. Currently, only 15% of buyers use AI in sourcing, while 80% do not. Among non-users, half are actively exploring AI options. Travel buyers anticipate trends such as increased use of AI (61%), more multi-year agreements (46%), continuous sourcing (45%), supplier and platform consolidation (40%), and adoption of new payment methods (36%).

Advito, BCD’s consulting division, offers sourcing and supplier spend management solutions designed to optimize managed air and hotel programs. These solutions are powered by data and driven by expertise to achieve new levels of savings, sustainability, and satisfaction.

Read the Travel buyer insights: Sourcing and supplier strategies report.