Business travel volumes in Italy fell by around 2 per cent year-on-year in 2025, while spending decreased by around 3 per cent, largely driven by a decline in international trips, according to research conducted by the Polytechnic University of Milan’s Business Travel Observatory.
The survey of more than 100 Italy-based companies, conducted in partnership with the University of Bologna, found that corporates spent 5 per cent less on international business travel from 2024 to 2025, with total expenditure falling to €12.6 million. In contrast, domestic business travel spending rose by 1 per cent to €8.9 million.
Domestic travel volumes fell by only 1 per cent, with the observatory recording 22.7 million trips – which far outweighed international travel volumes. Regional European travel saw a decline of 4 per cent, amounting to 6.4 million transfers, while long-haul journeys decreased by 2 per cent to 1.58 million trips.
Business Travel Observatory director Andrea Guizzardi, who presented the research last week at its annual Travel Innovation Day in Milan, said the findings signal “the end of globalisation… where geopolitical tensions are driving the market”.
He pointed to the effects of trade tensions and uncertainly surrounding US tariffs, adding that in the current macroeconomic climate “corporations tend to localise… they shorten supply chains and focus more on safe markets,” he said.
“This is the first decline [in volumes] we’ve seen since the post-pandemic return [to business travel] – it’s a small decline, but it rings alarm bells.”
Some sectors were more affected than others. The services sector saw a 2 per cent decline in overall business travel volumes, while travel for industry sectors remains stable, with only 0.2 per cent year-on-year decrease.
Commercial activity remained the strongest driver for business travel in 2025, which fell 3 per cent year on year. Travel to attend internal meetings declined 2 per cent, while attendance at trade shows and conferences remained stable – which Guizzardi labelled as a “positive sign for the Italian economy”.
Giorgio Garcea, chief commercial and operations officer at Cisalpina Tours International (CTI), confirmed the findings with the TMC’s own 2025 booking trends.
“Middle management is travelling much less,” he said. “Today, business travellers are either the top management or maintenance workers.”
Garcea noted that business travel volumes have fallen in sectors such as banking, insurance, professional services and fashion. Meanwhile, travel in sectors such as oil and gas are on the rise.
Digitalisation of travel management
Corporate travel management in Italy is increasingly going digital, with many companies relying heavily on TMC partners for technology solutions. More than half (53 per cent) of surveyed organisations have fully digitised their travel management process, covering everything from pre-travel approvals to booking, payment, and expense tracking, while 28 per cent have digitised some steps – largely booking and payment processes.
A majority (58 per cent) use an online booking tool, and 82 per cent of those depend on their TMC for that tool. Personalised reporting and analysis of travel data ranks among the top three reasons for choosing a TMC partner.
More than half (54 per cent) of Italian corporates have implemented systems to report business travel data, with 42 per cent entrusting this task to their TMC. Furthermore, 93 per cent of companies working with an agency receive their travel data and reports directly from their TMC. However, Guizzardi warned that companies looking for reliable data and analysis should expect “to pay for it”.
Italian companies are also beginning to experiment with AI, with 22 per cent having adopted generative AI tools for business travel management, mainly for tasks like analysis, reporting, and auditing.
Duty of care
The Observatory’s research revealed that 45 per cent of companies are only partially aware or entirely unaware of their duty of care obligations. Of those companies that are informed, just 45 per cent have travel policies that align with Italian law, and 22 per cent are in the process of implementing such policies.
CTI’s Garcea commented: “Protecting employees while traveling is not only a moral or legal duty, but an investment in operational continuity and corporate reputation.
“Since the post-Covid period, trips to destinations with risk factors have increased by 36 per cent [and] awareness and prevention are becoming priorities for everyone,” he said, noting an uptick in requests for travel risk management services.
Echoing Guizzardi’s arguments regarding data, Garcea urged corporates to invest in travel risk management.
“Safety comes at cost and, in my experience, corporates don’t have the budget for this. The role of the TMC is changing – it used to be reactive, but now we need to be proactive… and we are investing in software to be able to support our clients [with travel risk management]. Even though this isn’t traditionally what we do, we want to offer more and provide strategic support… we’re not simply a commodity.”
2026 outlook
Based on findings from the observatory’s research, which concluded in early December, the outlook for Italy’s business travel market in 2026 remains predominantly positive.
Nevertheless, Guizzardi noted that the rapid pace of change and ongoing geopolitical instability present significant challenges for accurate forecasting. He indicated that projections for spending growth could vary considerably, from an annual increase of 5 per cent to a potential decline of 2 per cent.
Guizzardi noted the recovery and resistance of the industry in recent years, highlighting that domestic business travel spending currently exceeds pre-pandemic levels by 10 per cent. However, he cautioned that international travel expenditure is 18 per cent below 2019 figures. “This is the biggest alarm bell regarding the end of globalisation,” he said.
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