London, October 6, 2025 — A new survey by Travel Counsellors for Business reveals that a majority of UK-based small and medium-sized enterprises (SMEs) plan to increase their business travel budgets in 2025, reflecting renewed optimism in the post-pandemic economy and a growing recognition of face-to-face meetings as key to rebuilding global partnerships.
The report, released on Monday, shows that 68 percent of SME leaders expect to raise spending on domestic and international business travel over the next twelve months. The findings suggest that smaller firms are becoming increasingly confident in expanding operations abroad, attending conferences, and meeting clients in person, even as corporate giants continue to cut travel costs to curb emissions.
According to Travel Counsellors, the surge in SME travel spending marks a clear rebound in the UK’s business mobility sector, which was severely affected by the COVID-19 pandemic and the ensuing remote-work revolution. “We’re seeing a strong appetite for reconnecting in person,” said Kieran Hartwell, Managing Director of Travel Counsellors for Business. “UK SMEs are telling us that face-to-face meetings are critical for building trust, driving sales, and exploring new international opportunities.”
The survey, which polled over 1,200 business owners and travel managers, found that 47 percent of respondents cited “relationship building” as the primary motivation for increased travel, while 32 percent said their companies were exploring new markets in Europe, Asia, and Africa. A smaller but notable segment, around 15 percent, pointed to trade shows and conferences as vital platforms for business development and brand visibility.
Despite inflationary pressures and higher airfares, many SMEs appear willing to absorb the additional costs. The study revealed that travel budgets are expected to rise by an average of 21 percent compared to 2024. This comes as global airlines and hotels report a steady recovery in business travel demand, driven largely by medium-sized enterprises rather than large multinational corporations.
Industry experts say the renewed enthusiasm highlights a changing dynamic in corporate travel. “SMEs are increasingly shaping the business travel landscape,” said Laura Pritchard, senior analyst at GBTA UK. “Unlike large companies that have tightened travel restrictions, SMEs are being more flexible and pragmatic, understanding that in-person engagement can often deliver faster results than virtual alternatives.”
However, the increase in travel activity also comes with concerns over sustainability and cost efficiency. About 58 percent of SMEs surveyed said they plan to adopt greener travel policies, including booking direct flights to reduce emissions, using rail over air travel for domestic routes, and partnering with eco-certified hotels. A growing number are also exploring carbon offset programs and digital tools to monitor their environmental footprint.
Travel Counsellors noted that its corporate clients are increasingly seeking tailored solutions that balance budget control with environmental responsibility. “Our SME clients are becoming more conscious of sustainability targets,” said Hartwell. “They want to travel smarter, not necessarily less, by using technology to streamline trips and reduce unnecessary carbon output.”
The findings also underline a shift in how travel management is being handled within smaller organizations. With many SMEs lacking dedicated travel departments, the responsibility often falls to office managers or senior executives. To address this, Travel Counsellors for Business has expanded its personalized travel management platform, offering real-time itinerary updates, expense tracking, and risk alerts to support decision-makers.
Experts believe that the government’s trade and export initiatives have also helped boost SME confidence. Programs like the UK Export Finance (UKEF) scheme and Department for Business and Trade (DBT) missions have encouraged firms to pursue opportunities in emerging markets. “Government support is playing a part,” said Professor David Blanchard of London Business School. “SMEs feel more empowered to travel abroad for partnerships, particularly in Africa and Southeast Asia, where UK expertise remains highly sought after.”
The rebound in travel spending also reflects a broader trend of SMEs prioritizing growth after several years of economic uncertainty. Data from the British Chambers of Commerce (BCC) shows that 62 percent of small businesses expect revenue growth in 2025, driven by new client acquisition and export opportunities.
Still, not all sectors are expanding equally. The Travel Counsellors survey found that technology, finance, and manufacturing firms lead the way in travel spending increases, while service-based industries and retail companies remain more cautious due to tight margins.
The report also highlights an emerging generational shift in business travel habits. Younger entrepreneurs, particularly those under 40, are more willing to travel for business opportunities than their older counterparts. Many view travel as essential to networking, personal branding, and attracting investors in competitive markets.
Analysts say that the outlook for SME travel in 2025 will depend heavily on the broader economic environment, fuel prices, and geopolitical stability. Ongoing conflicts in Eastern Europe and the Middle East could still disrupt routes and raise insurance costs. Nonetheless, the sentiment among UK businesses remains upbeat.
“After years of video calls and remote negotiations, people want to look each other in the eye again,” said Pritchard. “For SMEs, that human connection is what drives business forward. Digital tools can support growth, but they cannot replace the value of being present.”
With business optimism rising, travel firms are positioning themselves to cater to this growing market. Travel Counsellors, which reported record corporate sales in the first half of 2025, expects SME travel demand to continue climbing well into 2026. “We believe this rebound is not a temporary bounce,” said Hartwell. “It is a structural shift, and SMEs are reclaiming their role as the lifeblood of business travel.”
