Corporate travel volumes in South Africa are holding broadly steady, but geopolitical uncertainty is changing how some companies spend their travel budgets, with businesses paying more for flexible fares, alternative routings, insurance and duty-of-care services.
The trend comes as global business travel expenditure continues to outpace growth in trip volumes. According to the Global Business Travel Association’s (GBTA) 2026 Business Travel Index, global business travel spending is forecast to reach a record US$1,71 trillion (R27,63 trillion), up 7,2% from 2025, while total trip volume is projected to grow by just 1,3%.
South African TMCs told Travel News they were seeing a similar pattern locally, with higher travel costs and increased spending on risk mitigation influencing corporate travel budgets.
Volumes remain steady
While some companies have reduced travel, overall corporate volumes have remained relatively stable, according to Hamzah Mayet, Senior Consultant at Harvey World Travel Sandton Drive.
“There are some corporates that are obviously limiting their travel, but others have increased their travel based on the sector they are in,” he said.
“While the majority of corporate clients are still travelling, they are also considering the additional risk factors and trying to avoid hot-spot areas. But, if their business dictates that they have to go to or through those hot-spot areas, then they will still go.”
Linda Edwards, MD of XL Turners Travel, added that while some corporates were taking fewer trips, there had not been a drop in the class of tickets booked for business travel, despite higher fares.
Risk changes booking choices
Sue Garrett, GM Pricing, Supply & Marketing at Flight Centre Travel Group, said concerns among corporate travellers were largely focused on operational risks, including potential airspace disruptions, schedule changes and the knock-on effects on time-sensitive itineraries.
“A small segment of travellers, particularly those with inflexible itineraries or a lower appetite for uncertainty, are actively seeking alternative flight routings through European gateways or African hub connections. For this group, the peace of mind is worth the premium.”
However, Edwards said South African companies would still consider affordability, and might just opt for flexible or refundable fares if they were using an airline that operated in an area experiencing geopolitical tension.
“There has been some shift to direct flights that avoid geopolitical hotspots, but a lot of South African companies still opt for lower fares, especially where the airline is flexible in its cancellation and rerouting policies,” said Edwards.
More spent on protection
Some companies are also spending more on insurance and specialist duty-of-care services.
Mayet said some corporate clients were opting for more comprehensive travel insurance rather than standard policies, although many policies excluded war-related events.
“Even though many insurance policies will not cover war-related issues, corporates prefer the more comprehensive insurance so that if there are any delays or cancellations, they are covered a little bit more than normal.”
Edwards said some companies were also investing in third-party duty-of-care products that provided crisis and risk-management support for international travellers.
“It does come at a cost but is now seen as an invaluable tool for corporate clients to safeguard their staff,” she said.
