A recent study says a sizeable number of small to medium-sized businesses (SMEs) in Canada are increasing their travel spending.
Despite inflation worries, tariff tensions and tight operating margins, more than four in 10 Canadian SMEs (42%) are spending more on business travel in 2025 than last year, according to a national YouGov survey commissioned by Corporate Traveller Canada, the business travel division of Flight Centre Travel Group.
At a time when many Canadians are reining in personal spending, 42 per cent say they expect to increase their travel budgets, pointing to the enduring value of in-person relationship building, business acquisition and team connectivity.
This sentiment aligns with Corporate Traveller Canada’s own booking data, which shows a six per cent increase in domestic and international business travel bookings in Q1 2025 compared to the same period last year, driven primarily by clients in professional services, mining and manufacturing sectors.
“Our data shows that 55 per cent of Canadian SMEs worry the inflation rate will increase over the next 12 months, yet most aren’t pulling back on travel,” said Chris Lynes, managing director for Flight Centre Travel Group Canada. “Instead, they’re optimizing how they travel, leveraging cost controls, smart policies and technology so they can stay agile without sacrificing business growth.”
ADDITIONAL SURVEY INSIGHTS
- Canadians fear repercussions of inflation
- Almost 3 in 4 (70%) Canadian SMEs fear that inflation will affect their business’s ability to afford corporate travel.
- Demand for Corporate Travel Reaching New Heights
- More than 4 in 5 (82%) SMEs believe demand for corporate travel will be the same as or higher than pre-pandemic levels over the next 12 months.
- Majority of SMEs Think Corporate Travel Remains Viable
- Taking the current and forecast inflationary environment into account, 15% of SMEs say travel remains highly viable (little to no change) and almost half (48%) say it’s viable, though some reduction may be necessary.
- Savvy Businesses Taking Steps to Manage Travel Costs
- Over the past 12 months, 84% of Canadian SMEs have gotten smart about where they spend their travel budget—but only 30% have reduced travel frequency.
- Opted for cost-effective options (economy class, budget accommodations) – 32%
- Encouraged or mandated advanced bookings to secure lower rates – 28%
- Reviewed and optimized travel policies – 27%
- Set stricter travel expense limits and budgets – 25%
- Negotiated discounts with airlines, hotels or car rental companies – 24%
- Implemented an approval process for all travel requests – 24%
- Used data analytics or technology (e.g. AI-based tools) to monitor and control travel expenses – 21%
- Over the past 12 months, 84% of Canadian SMEs have gotten smart about where they spend their travel budget—but only 30% have reduced travel frequency.
