Monday, June 23, 2025
Business travel expenses in Germany have experienced a marked increase in 2024, driven by inflation, fluctuating market conditions, and ongoing geopolitical tensions. According to a recent analysis by SAP Concur, a leader in digital travel and expense management, businesses in Germany are spending more on travel than ever before. Despite the challenges of high inflation and unpredictable markets, business travel remains an essential element of corporate strategies. This analysis, which pulls data from various sources, including Germany’s national statistics, delves deep into the key factors contributing to the rise in business travel costs.
The SAP Concur report reveals that, in 2024, companies are paying roughly 4% more per invoice than they did in 2023. Overall, business travel expenses have increased by a significant 15% year-over-year, indicating a robust return to in-person business activities following the pandemic. This surge in costs comes at a time when businesses are looking to maximize operational efficiency, underscoring the importance of expense management in the current climate.
Key Drivers of Increased Business Travel Costs
One of the most noticeable trends in the rising costs of business travel in Germany is the sharp increase in the price of airline tickets. In 2024, the average cost of an airline ticket for business travel has reached €497 per expense report. This marks a significant hike and makes air travel the single most expensive line item in corporate travel budgets. The average price of airline tickets is now as much as seven times higher than the average spend on other types of business expenses.
Beyond air travel, other travel-related costs have also seen substantial increases. Car rental prices have spiked, with businesses now spending an average of €207 per report for vehicle hire. However, it is worth noting that while car rentals have become more expensive, the growth in costs for meals and client dinners—typically part of the entertainment category—has been somewhat more moderate. This category saw a 6% rise in 2024, bringing average meal and entertainment expenses to €24 per report. Industry experts believe this slower growth in catering expenses could be attributed to already high catering prices, which have limited further price hikes despite inflation.
In addition to airline tickets and car rentals, event-related expenses have been among the fastest-growing categories in business travel. As businesses place increasing importance on face-to-face meetings, conferences, and team-building events, companies are spending an average of €120 per report on events in 2024—a 26% jump from the previous year. This reflects a growing trend toward more in-person interactions in an effort to bolster collaboration and strengthen client relationships. The rise in event spending is indicative of a broader business strategy shift towards fostering deeper personal connections and enhancing the effectiveness of corporate communications.
Surprisingly, one of the sharpest increases in business travel costs was observed in the “miscellaneous” category. This includes incidental expenses such as luggage storage, internet access, tolls, and other often-overlooked costs. According to the SAP Concur report, this category saw a dramatic 21% increase in 2024, highlighting the challenges businesses face when managing and tracking smaller, yet frequent, expenses. Many companies struggle to efficiently monitor these costs, which can add up over time, especially for businesses without proper digital tracking tools.
Overnight Stays Account for Largest Share of Total Business Travel Costs
While airline tickets have become more expensive, overnight stays still represent the largest portion of total business travel expenditures. According to SAP Concur’s analysis, overnight stays account for 28% of the total costs incurred by businesses on travel. This indicates that, even with the significant rise in flight costs, businesses continue to prioritize lodging as a major component of their travel budgets. Interestingly, while air travel has become notably more expensive, many companies are opting for alternative modes of transportation, such as train travel or company vehicles, to reduce costs in other areas.
Airline tickets still represent a considerable 21% of total business travel expenses. Entertainment-related expenses, including client dinners and business meals, contribute an additional 14%. Although the per-item spend on these categories is lower, the frequency of such expenditures underlines their importance in maintaining personal relationships and supporting the business development process.
Hospitality and Public Transport Remain Frequent Expenses in Business Travel
Despite rising costs, hospitality-related expenses such as meals, coffee meetings, and informal client engagements continue to be the most commonly reported travel costs in Germany. The frequency of these submissions accounts for around 37% of all travel-related expense reports. Public transport costs, such as those for taxis and trains, follow closely at 17%, while overnight stays represent 16% of all reports. This highlights the ongoing importance of personal interaction in business, as even with the rise of digital communication tools, face-to-face meetings still play a crucial role in fostering trust and collaboration.
The Importance of Digital Tracking for Effective Expense Management
With the increase in business travel costs across various categories—fuel, event spending, and miscellaneous expenditures—tracking travel-related expenses effectively has become more crucial than ever. The SAP Concur analysis stresses that companies with robust digital expense tracking systems are better positioned to manage rising travel costs. These systems allow businesses to quickly adapt to changing market conditions, identify potential savings, and optimize their travel budgets.
As business travel continues to rebound and adapt to a rapidly changing global economy, businesses without effective tracking solutions may miss out on cost-saving opportunities. Manual or outdated methods of managing travel expenses are increasingly inadequate, as businesses can no longer afford to overlook inefficiencies that may add up over time.
Conclusion: Managing Rising Business Travel Costs in Germany
As business travel costs continue to rise in Germany, companies must find new ways to manage their travel budgets effectively. While the increase in expenses is driven by several factors, including the higher prices of airline tickets and car rentals, the resurgence of in-person events and the growth in miscellaneous spending, businesses can still take steps to optimize their travel expenditure. By leveraging digital expense management tools and maintaining transparency, companies can better navigate the complexities of business travel in 2024 and beyond.
Sources : SAP Concur, Germany’s Federal Ministry for Economic Affairs and Energy (BMWi), Germany Federal Statistical Office , German National Tourist Board , Bundesbank .
