January 05, 2026 | Procurement Strategy 3 minutes read
Travel and fleet management may look stable at first glance, but the category is shifting in ways that matter deeply to procurement.
Airlines, hotels, rental providers, and TMCs are integrating AI into their operations, while sustainability expectations, regulatory pressures, and uneven progress on electrification are all creating a new set of decisions for organizations.
2026 won’t be defined by price shocks; it will be defined by how well procurement anticipates these subtle shifts and shapes smarter, more resilient strategies around them.
Here's what you need to look out for this year:
Airfares are expected to stay relatively steady, though they can still swing when fuel or capacity shifts occur. The bigger story is how much AI is now embedded in the travel ecosystem. Real-time disruption alerts, automated rebooking, and integrated policy controls are quickly becoming standard.
Companies are also feeling increased pressure to reduce emissions on short-haul routes. In Europe and Asia in particular, rail alternatives are becoming a new lever for compliance and cost control.
Procurement’s priority is no longer just negotiating discounts. It is ensuring the travel ecosystem actually works: reliable systems, smooth integrations, strong traveler experience, and clear emissions visibility.
EV transition is still the long-term direction, but 2026 will not deliver the acceleration many expected. Vehicle prices, uneven charging networks, and shifting incentives continue to slow uptake.
Most organizations are using longer-term agreements, fixed-rate structures, and hybrid fleets to maintain predictability while preparing for future electrification. North America remains demand-heavy in smaller hubs, Europe has the highest EV adoption but also the highest energy costs, and Asia-Pacific is growing rapidly but inconsistently.
For procurement, the challenge is balancing readiness with realism.
TMCs are evolving from service vendors into digital partners. The focus is now on user experience and system performance rather than fee structures. Procurement must evaluate how well these platforms integrate with internal tools and how effectively they improve visibility, compliance, and traveler support.
Hotels, meanwhile, expect slight rate increases, but procurement retains leverage. New capacity, standardized sustainability programs, and stronger digital tools give buyers more flexibility to negotiate for value beyond nightly rates.
Fleet programs are becoming more data driven. Telematics tools are standard now, helping reduce downtime, cut fuel use, and improve driver safety. At the same time, connected vehicles increase cybersecurity risks, which puts pressure on procurement to vet suppliers more rigorously.
Organizations are shrinking underused fleets, exploring shared models, and building slow-but-steady EV transition plans that align with local infrastructure rather than idealistic timelines.
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1. Redesign airline and travel strategies around resilience, not just price. Flexible, multi-carrier agreements, real-time disruption tools, and traveler-wellbeing considerations now matter as much as discount structures. Stability is the new savings lever.
2. Build ground-transport contracts that prepare for EVs, even if adoption is slow. Fixed-rate multi-year deals, EV-readiness clauses, and infrastructure-aligned transition plans give you predictability today and flexibility tomorrow.
3. Evaluate TMCs on usability and integration, not fees. Digital maturity determines traveler satisfaction, compliance, and data quality. The quality of that ecosystem will dictate how smoothly your travel program runs.
4. Take advantage of hotel negotiation opportunities. Benchmark frequently. Consolidate spend where it makes sense. Use rate-adjustment clauses so costs fall if markets soften.
5. Treat fleet data as a strategic asset. Telematics insights help optimize routes, plan maintenance, and reduce insurance exposure. Combined with cybersecurity requirements and smarter vendor selection, fleet programs become more resilient and cost-efficient.
These actions help you stay ahead of a category that looks calm but is evolving quickly underneath. The details matter, and 2026 will reward teams that read the signals early.
This summary only scratches the surface. The GEP Spend Category Outlook Report 2026 goes deeper into the market forces, risk patterns, and strategic levers shaping travel, fleet, and 17 other indirect and direct categories.
Download the full report now to get the complete analysis and recommendations.