THE EXPENSE SQUEEZE

Tighter budgets, streamlined claims and tech innovation – we take a look at the world of travel expenses in 2026

- ROBERT REID

“THE BOTTOMLESS EXPENSE account is propaganda,” says Alan Farrier, a senior sales executive covering the EMEA region for a major streaming platform. “It lures hopefuls with the promise of long lunches and luxury travel. I’ve certainly never had one.”

Today’s travel and expenses (T&E) landscape is tighter, more controlled and, for those doing the travelling, more frustrating than ever. After the pandemic shook the tree, there was a noticeable rebound in company budgets, but the upswing wasn’t felt among those on the road.

Inflation has eroded spending power and, while a rash of new technologies means it’s easier to file expenses, they’ve also made it simpler for companies to impose restrictions and detect employees’ somewhat sneaky claims.

Shrinking allowances

On paper, the outlook is healthy. The Global Business Travel Association (GBTA) reported a 10% increase in business travel spend in 2024, forecasting annual compound growth of 6.1% through to 2029. In reality, however, spending remains 14% below pre-pandemic levels.

“Like-for-like budgets are up, but we’re travelling less and buying fewer things,” says Charles Lockwood, a financial controller at an international property firm. “We’re only just keeping up with inflation, but business travel is one of the few areas we can control when we’re hit with global economic pressure, so everything gets scrutinised.”

In the creative industries, the squeeze is just as acute. Iain Wiggins, an executive producer at an advertising agency, sets T&E budgets for shoots. “Getting less for more is the expectation,” he says. “It now costs the same to have eight people on a shoot that used to have a dozen people. It really limits what we can do.”