Summary of Key Findings
In the first half of 2026, the Chinese business travel market exhibited a pattern of growth amidst contradictions and transformation: corporate travel budgets were generally tightened, yet demand continued to rise. High-speed railways began to replace air travel more frequently, and urban transportation shifted towards public transport options. International travel increased as companies expanded their overseas operations, but faced new challenges related to payments and contract fulfillment. Traditional travel management companies (TMCs) that relied on airline commission revenues were struggling to sustain their models and needed to shift towards providing more specialized services. Although AI applications were still in their early stages, they have the potential to significantly impact future travel management decisions.
Detailed Analysis
1. Corporate Travel: Limited Funds, Increased Responsibilities
The main contradiction in corporate travel is the conflict between tight budgets and an increasing number of business trips. Over 70% of companies prioritize cost optimization, with 36% still looking for ways to save money and 32% maintaining stable budgets. Despite the limited funding, 51% of companies reported an increase in travel expenses in the second quarter.
How are companies coping with this? While they have not lowered the standards for hotels and air tickets (70% of companies have not changed their hotel requirements), they are demanding more efficiency from their spending: finding cheaper supply chain options, improving procurement processes, and cutting unnecessary expenses. However, even though hotels in lower-tier markets are available for booking, more than half of employees feel that the quality is subpar. Similarly, while car services are provided, long waiting times are a concern, which affects employee satisfaction.
2. Modes of Transportation
The trend of high-speed railways replacing air travel is becoming increasingly evident: 75% of companies encourage their employees to choose high-speed trains whenever possible, and 77% of employees are willing to try this option. The range of high-speed train services has expanded from previously covering distances of up to 800 kilometers to now including routes up to 1100 kilometers (e.g., Beijing to Nanjing, Guangzhou to Wuhan). However, long-distance travel by high-speed rail still has drawbacks, as more than half of respondents consider it too time-consuming (e.g., a 4-5-hour journey compared to a 1.5-hour flight). Therefore, the two modes will likely continue to compete for market share.
For urban transportation, companies are encouraging employees to use subways and light rails over taxis, especially in small and medium-sized enterprises as well as local state-owned companies. However, issues with payment and settlement methods for public transport remain unresolved—questions such as whether companies can pay for these services on behalf of their employees and whether expenses can be automatically reimbursed need to be addressed through digital improvements.
3. International Travel
Nearly 40% of companies have international travel needs, particularly in industries like technology, professional services, and advanced manufacturing. Large private enterprises, central state-owned companies, and those with over 5,000 employees are seeing the fastest growth in international travel activities. However, the challenges associated with international travel are different from domestic ones. While cost savings are a concern domestically, overseas travelers focus more on safety, contract fulfillment, and payment methods.
Common issues include the accuracy of hotel locations, transparency of cancellation policies, language barriers, multi-currency payment options, and exchange rate fluctuations during transactions. These factors significantly impact employees' travel experiences and require companies and service providers to find effective solutions.
4. TMC Service Providers: The End of Revenues from Air Ticket Commissions
TMCs traditionally earned profits by selling air tickets and receiving commissions from airlines. However, with the rise of high-speed railways, air ticket bookings have decreased, leading to reduced commission income. Traditional models are no longer viable. Companies now prefer to pay for value-added services such as travel process optimization, cost control, and assistance with international payment issues. Therefore, TMCs must transform by enhancing their professional capabilities (e.g., budget analysis, risk forecasting) and digital skills (cross-border payments, multi-currency settlements, integration of overseas resources).
5. AI: From a Utility to a Critical Travel Partner
Currently, AI is primarily used for basic tasks in business travel, such as automated booking and information retrieval. However, companies expect AI to play a more proactive role in future travel management—helping with the implementation of travel policies, analyzing budgets, identifying potential risks, and providing predictive insights about travel trends. As companies accumulate more data, AI will become increasingly important, shaping the direction of travel services over the next 1-2 years.
Conclusion
The growth dynamics in the Chinese business travel market have changed in the first half of 2026. Domestically, there is a focus on reorganizing transportation systems, while internationally, companies are accelerating their overseas expansion. Companies place greater emphasis on professional services and global compliance capabilities. Service providers must adapt by shifting from providing basic resources to offering value-added solutions. AI, digital technologies, and international expertise will be key factors in future competition.