Indian Corporates Shift to Tech-Led Business Travel
Alexandra
65% of surveyed companies expect business travel volumes to rise in 2026, while 70% have implemented or are implementing digital systems for booking, approvals, and expense management—a decisive operational shift reported by Thomas Cook (India) Limited and SOTC Travel in their Business Travel Report 2026.
Key findings: adoption, cost control, and traveller experience
The report, based on inputs from more than 25 large enterprises across BFSI, manufacturing, healthcare, hospitality, and professional services, highlights three immediate trends reshaping corporate mobility:
- Digital adoption: Around 70% of firms are moving to automated booking and expense workflows to improve data visibility and compliance.
- Value-based decisions: 62% of respondents now evaluate travel options balancing cost, safety, and regulatory compliance.
- Traveller-centric policies: 56% emphasise traveller experience, flexibility, and duty of care, reflecting hybrid work patterns.
Operational pressures and policy responses
With airline costs and travel operating expenses on the rise, 60% of companies reported tightening travel policies and renegotiating supplier contracts. Fiscal factors such as GST compliance and Input Tax Credit (ITC) optimization were flagged by 55% as persistent budget constraints, prompting a stronger preference for structured invoicing and compliant supplier networks.
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Destination mix: domestic hubs and returning international corridors
Domestic travel constitutes 72% of corporate trips, concentrated in Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, and Pune. Internationally, Singapore, Dubai, the UK, the Netherlands, and the USA remain prominent, while China and Japan are re-emerging as business corridors.
How technology is being deployed
Enterprises are investing in integrated platforms for booking, approvals, and expense reconciliation. The report names specific tools and innovations used by corporate travel teams and suppliers to accelerate transformation:
- Voice and AI assistants: Adoption of voice-enabled advisors for itinerary changes and quick approvals (example platform noted: Dhruv.ai).
- Unified booking platforms: Centralised portals for policy-aware bookings (example platform noted: TravelOne).
- Automated expense reconciliation: Systems that match invoices, detect non-compliant spend, and integrate tax reporting.
Table: Snapshot of reported metrics
| Metric | Reported Value | Operational Impact |
|---|---|---|
| Expectation of travel increase (2026) | 65% | Higher booking volumes; need for scalable platforms |
| Firms adopting digital travel systems | 70% | Improved policy compliance and data insights |
| Domestic share of travel | 72% | Concentration on key metro-to-metro routes |
| Firms tightening policies | 60% | Supplier renegotiations and cost controls |
| GST/ITC challenges reported | 55% | Demand for structured invoicing and tax integration |
Behavioural shifts: Bleisure and traveller flexibility
Nearly 68% of corporates identified bleisure—the practice of extending business trips for leisure—as a key trend. Organisations are updating policies to allow cost-sharing arrangements and increased flexibility for employees, while still preserving governance through tech-enabled approvals.
Implications for travel suppliers and intermediaries
Suppliers that offer transparent invoicing, integrated tax documentation, and seamless digital interfaces are more likely to win corporate contracts. Travel management companies must blend compliance controls with a user-friendly booking experience to meet evolving buyer expectations.
Historical context: evolution of corporate travel systems in India
Corporate travel in India moved from manual agency bookings and paper invoices in the early 2000s to the first wave of online booking tools in the 2010s. The pandemic accelerated digital adoption, forcing expense automation, virtual approvals, and policy reconfiguration.
Where earlier travel programs prioritised cost-minimisation through negotiated fares and bulk bookings, the past five years have seen a shift to value creation—combining cost-effectiveness with traveller safety, flexibility, and compliance. Platforms offering real-time reporting and integration with finance ERPs gained traction as companies demanded tighter control over spend and tax treatment.
Milestones in the transition
- 2000s: Dominance of travel agencies and paper invoicing.
- 2010s: Emergence of online booking tools and corporate portals.
- 2020–2022: Pandemic-induced acceleration to remote approvals and contactless itineraries.
- 2023–2026: Wide-scale adoption of AI assistants, integrated tax reporting, and policy-aware booking platforms.
What this means for corporate travel managers
Travel managers should prioritise:
- Platform standardisation: Adopt systems that centralise bookings, approvals, and expenses to reduce leakage and improve reporting.
- Supplier compliance: Work with suppliers who provide structured GST-compliant invoicing and clear tax documentation.
- Traveller experience: Balance controls with flexibility—enable bleisure options via managed cost-sharing models.
- Data-driven governance: Use dashboards for real-time visibility into spend categories, policy breaches, and duty-of-care metrics.
Potential risks and mitigations
Key risks include integration complexity between booking systems and finance ERPs, data privacy concerns with AI assistants, and resistance to policy changes from frequent travellers. Recommended mitigations include phased rollouts, employee training, and contractual clauses with suppliers to ensure invoice and tax compliance.
Forecast and strategic outlook
As business travel volumes rebound, expect further consolidation around a smaller set of compliant, technology-enabled suppliers. Companies will increasingly prioritise platforms that combine booking, duty of care, and tax reporting. The rising prominence of bleisure will demand flexible policy design and clearer cost-sharing models. Near-term investments are likely to focus on AI-assisted user flows and deeper finance integrations to protect budgets while preserving traveller satisfaction.
In closing, the Business Travel Report 2026 indicates that corporate travel programs in India are transitioning from simple cost centres to strategic operational functions driven by technology, governance, and traveller experience. For travel managers, suppliers, and corporate finance teams, the imperative is to adopt integrated, compliant systems that deliver visibility, control, and flexibility.
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