The cost of progress
Does sustainable business travel have to come at a price and will this always be the case, asks Gillian Upton
‘Short-term pain leads to long-term gain’ is a phrase that strongly resonates when embarking on a sustainability journey. Yes, there might be some initial upfront costs, but be patient, stick to the path, and these will be offset by savings elsewhere, or in the long run.
The initial sting will come mainly from the cost of offsetting and from purchasing sustainable aviation fuel (SAF), but pursuing purposeful travel in the interim should counter some of those extra costs.
This means reducing one-day work trips, combining multiple trips into one longer trip, downgrading from premium to economy cabins (a saving in most cases), booking more direct flights, making better use of virtual collaboration, and driving modal shift from air to rail.
Easy wins include incorporating modal shift into travel policy and timed messages into the booking tool. Longer-term wins include introducing carbon budgets to drive behaviour that lowers both travel emissions and travel costs.
“Programme compliance, better data and fewer last-minute bookings also help reduce spend and emissions simultaneously,” adds Scott Davies, CEO of the Insitute of Travel Management (ITM).
“For some, the issue is less focused on cost and more aligned to system functionality and capabilities, which either make it more difficult to book or to identify a more sustainable option.”
“Easy wins include incorporating modal shift into travel policy and timed messages into the booking tool”
Embracing sustainability as an investment is best practice, but some carbon reduction strategies can reduce costs, says Paul Tilstone, founder of consultancy firm temoji.
“For example, reduced cleaning requirements in hotels or government-led EV or rail pricing. So, we are likely to see an increase in some categories but not necessarily in all,” he says.
“But sustainability will have an overall inflationary effect on travel costs and travel buyers need to be factoring that in if they do not take a more strategic approach in demand management.”
Sam Cande, Consultancy Director, 360 Consulting by Greengage, argues that sustainable business travel doesn’t always have to cost more, and cites an example.
“For the same journey around the same time, I found a flight option that produced 50% lower emissions while also costing 23% less. Look not only for the lowest price but also the lowest emissions. It comes down to knowledge, awareness, and available options,” she advises.
“Hotels follow the same pattern. Three-star, four-star, and five-star properties increasingly prioritise sustainability, and some have lower emissions per room per night. Corporate booking tools usually display these options, and travel management companies (TMCs) want to support travellers in making these choices.”
Demand management is key. “Reorganising the way you travel and decentralising travel by replacing one global meeting with several virtual meetings will reduce travel emissions, and cost,” says Denise Auclair, Head of the Travel Smart Campaign.
Many companies have proved these strategies work, including AstraZeneca, Tetra Pak, Oracle, Nokia, IKEA, Kearney International and NES Fircroft.
Accountancy firm BDO saved £361,000 in the UK with a smart carbon policy driving modal shift from air to rail, tighter trip approvals and implementing American Express GBT’s Egencia booking tool, which reduced carbon emissions by 26%.
Another, Swiss Re, reduced carbon emissions by more than 50% and scooped the gold standard of the Travel Smart Ranking awarded by the Travel Smart Campaign. “They don’t see this as a hindrance. It’s good for business, helps their reputation and employees want it to happen,” says Auclair.
ATPI’s client International SOS utilises tools like Thrust Calculator for granular GHG emissions reporting.
“This data-driven approach allows them to make informed adjustments to travel policies and supplier selections, and they also demonstrate innovation in research management by repurposing residual airline loyalty points for purchasing SAF,” explains Pippa Ganderton, Director of ATPI Halo, a specialised service created by ATPI, a Direct Travel Company.
“The efforts to drive sustainable practices, over time, should mean that sustainable travel becomes the norm rather than a cost premium”
Some firms accept the reality of a sustainability premium, says ITM’s Davies.
“Many organisations already allow more sustainable options within defined cost thresholds (often up to 20%), or with line-manager approval,” he explains.
“This suggests that sustainability is being balanced against budget reality and supplier variables, for example, limited aviation capacity and hotel sustainability premiums.“
Big picture thinking and a long-term view are required, says Katie Garrahy, Global Travel Manager for Wood PLC.
“The efforts to drive sustainable practices, over time, should mean that sustainable travel becomes the norm rather than a cost premium,” she says.
Kelsey Frenkiel, Director, Sustainability Programme GBTA, concurs.
“The more useful question for corporates isn’t, ‘Does this cost more?’ but, ‘What impact are we getting for this spend?’. For many organisations, these investments are increasingly tied to climate commitments, risk management, and credibility, not just travel budgets,” she notes.
“It’s short-sighted to say that sustainability always costs more. The upfront investment can sometimes seem daunting, but the downstream impacts of operating a more resilient and ethical business can be massive.”
“There is likely to be a tipping point at which the more sustainable option is also the more cost effective”
The hope is that growth in SAF production will bring the price down and sustainable choices will become embedded in decisions.
The current barriers slowing a broader uptake of SAF include uncertainty around accountancy standards, cost sensitivity and limited internal readiness, according to new research from GBTA Foundation’s Acceleration Challenge.
Festive Road Head of Client Solutions, Rich Johnson, believes improved hotel emissions reporting and the expansion of high-speed rail corridors will also help to bring about price parity.
He points to three drivers that will accelerate change: volume commitments that justify supplier investment, standardised data that allows fair comparison, and policy shifts like EU SAF mandates and rail investment.
And Ellie Dixon, President – Sustainability, Wood PLC, predicts that as we get closer to 2050 “there is likely to be a tipping point at which the more sustainable option is also the more cost effective”.




