UK SMEs are increasing international business travel spend despite ongoing disruption linked to the Middle East, according to research from Travel Counsellors for Business.
A survey of 1,000 UK SMEs shows 39% plan to increase international trips over the next 12 months, with 67% expressing confidence in travelling abroad for business. Nearly two thirds (62%) expect to spend more on overseas trips over the next year, compared to 10% anticipating a reduction. Average projected spend has risen from £43,000 in 2024 to £57,000.
The primary motivation for increased travel is generating new business opportunities (38%), followed by meeting suppliers or manufacturers (35%) and attending overseas events and conferences (31%).
The data highlights a significant shift in travel patterns. Bookings via Middle Eastern hubs are down 85% year-on-year, while alternative routing via Asia has increased 166%. Demand for the US is up 17% and Australia 61%.
More than a quarter (26%) of SMEs say they are actively avoiding certain regions or routes, while 55% are now less willing to send employees to the Middle East. Europe remains the dominant destination, with 68% of SMEs expecting to travel there most frequently over the next year, and 40% saying they are now more likely to send colleagues there in light of geopolitical uncertainty.
While cost remains the leading factor in purchasing decisions (45%), this is closely followed by flexibility (33%) and the ability to adapt plans quickly in response to disruption (32%).
“What we’re seeing is not a slowdown in business travel, but a shift in how it’s approached,” said Melanie Quinn, director of Travel Counsellors for Business. “SMEs are continuing to invest in travel because they recognise the value of face-to-face interaction, but they’re doing so more carefully, with greater focus on risk, flexibility and return on investment.”
