U.S. Corporations Pause Business Travel as Economic Headwinds Trigger a Reassessment

Corporate America is no longer traveling just because it can. With tariffs and budget pressures mounting, domestic business travel is now being scrutinized trip by trip, and there’s no guarantee it will come back in full.

Industry insiders suggest many U.S. corporations are hitting pause on non-essential domestic business trips.

In May, for the fourth consecutive month, U.S. domestic air travel has declined, even as global travel demand continues to rebound. The International Air Transport Association (IATA) attributes the dip to economic uncertainty and reduced government travel.

“There's no one-size-fits-all answer,” said Vik Krishnan, a senior partner at McKinsey who advises firms across the aviation, travel, and aerospace industries.“We’re seeing a lot more scrutiny on discretionary travel. The conversation has shifted from ‘how much travel’ to ‘why are we traveling?’”

That scrutiny is being driven by more than just cost-cutting. Companies are recalibrating what kinds of trips actually are decisive, and which ones can be replaced with a Zoom call.

“Sales-related trips or supplier visits that