The UAE – as also the wider GCC region- is predicted to see a massive surge in business travel this year, fuelled by the rising in-person team-building and inter-team meetings in the corporate sector, sector players said.
The rising trend of “frolleague” – where employees blend business trips with leisure activities alongside colleagues – will also add to the demand spike for business travel to the region in 2025, they said.
The UAE’s business travel sector is also poised to see an AI-led transformation this year in the face of increasing demand from business travellers for real-time updates about everything – from flight disruptions to extreme weather to sudden geopolitical developments.
“Of late, companies are seen investing heavily in travel services as they recognise the necessity for promoting in-person team-building and inter-team meetings, besides internal gatherings and retreats for boosting productivity,” Andrew Baturin, CMO at Tumodo, a Dubai-based B2B business travel platform, told Arabian Business.
“This, in turn, will boost business travel to the UAE – and also to the wider region – which is fast becoming a major growth hub globally,” he said.
A recent survey by Deloitte showed that as high as 58 per cent of travel managers anticipate a massive spike in corporate travel budgets in 2025.
While client-related travel is slated as the top driver of trip frequency, live events are listed as contributing equally in boosting corporate travel this year.
‘Frolleague’, ‘experiential’ travel on the rise
Baturin said their platform is seeing the latest trend of “frolleague” travel gaining traction of late, where employees blend business trips with leisure activities alongside colleagues.
According to a recent report by Hilton, the trend of global travellers often travelling with “frolleagues” on leisure trips, which accounted for nearly 30 per cent last year, is expected to see a significant jump in 2025 with the rise in business and group travel.
Industry insiders said another trend that is expected to further catch up this year is experiential travel.
“Business travellers are seen increasingly seeking experiential opportunities such as cultural experiences or activities that promote team bonding,” an industry official said.
This is in line with the rising shift towards blending work with leisure – referred to as ‘bleisure’ travel – where employees extend their business trips for personal enjoyment, the official said.
Sustainability is another major factor which is expected to transform business travel in the UAE in 2025, driven by growing regulatory requirements and corporate responsibility.
“With 82 per cent of global businesses reporting on sustainability, aligning with environmental standards is now a necessity rather than an option,” the Tumodo senior executive said.
He said travel platforms and firms are also supporting this shift by helping companies to adopt greener travel policies through measures such as selecting sustainable accommodations, optimising travel routes, and implementing carbon offset initiatives.
AI poised to transform UAE business travel landscape in 2025
Travel industry experts said AI is accelerating the shift towards ‘sustainable’ travel trends in the corporate sector by offering tools to identify eco-friendly travel options and track carbon footprints.
Advanced platforms now enable businesses to integrate sustainability into every stage of travel planning – from choosing low-impact transportation to supporting providers with certified green practices, they said.
Baturin said their platform’s sustainability initiative, ‘TumodoGreen’, employs AI analytics to track carbon footprints and recommend environmentally conscious travel options.
“As environmental awareness rises, employees expect organisations to reflect these values in their travel policies,” he said, adding that such initiatives also strengthen corporate reputation and foster employee trust.
The Tumodo senior executive said in 2025, AI is poised to transform the business travel landscape in the UAE as business travellers now expect real-time updates about disruptions – from extreme weather to geopolitical instability.
“Employers must provide tools that alert employees to potential issues and offer alternative options to maintain safety and productivity during travel,” he said, adding that platforms such as theirs chip in with assistance on this front.
“AI also currently streamlines operations by automating routine tasks like booking, itinerary management, and expense reporting, leaving travel managers to focus on strategic decision-making rather than administrative duties,” Baturin said.
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