By Brian Veloso, Managing Director at SAP Concur Canada

In a time when Canadians are navigating economic uncertainty and demonstrating a continued focus on cost efficiency both at work and at home, travel has emerged as a statement of resilience and local engagement. In April, Canadian airports experienced a surge of two million passengers travelling domestically, a 7.4 per cent increase over April 2024. Rather than simply “recovering,” these numbers reflect a renewed emphasis on reconnecting with local experiences, even as Canadians remain cautious amid global trade tensions and ongoing economic pressures.

At SAP Concur, our data tells a similar story for business travel. An analysis of travel data for 2024 compared to 2023 indicates that domestic business air travel increased 3 per cent year over year, with international travel volume growing nearly 6 per cent globally. Notably, air travel expense transactions in Canada surged by 11 per cent. Despite global cost-cutting trends, Canadian companies view travel as a strategic investment—vital for growth, innovation, and maintaining competitiveness in a challenging economic environment.

While many global organizations have expressed a desire to cut back on travel spending—as noted in the SAP Concur 2024 Global Business Travel Survey—Canadian companies appear to be bucking the trend. The data suggests they are making deliberate investments in travel as a critical lever for growth and connection. In an economic climate where government spending and business investment are key supports, this behavior reflects a belief that travel is essential for fostering innovation and maintaining competitive momentum. And despite the global sentiment of cost-consciousness, Canadian businesses are demonstrating a measured return to spending as a reflection of their commitment to invest. Concur Expense data shows a 13 per cent year-over-year increase in total expense transactions from 2023 to 2024, while the average cost per transaction held steady at $121. This suggests organizations are investing with intent—resuming key activities like travel and client engagement, while carefully managing their expenses.

Change in Number of Transactions per Expense Category in Canada

₁Miscellaneous refers to expenses that don’t fit within a company’s defined expense categories

₂Other refers to non-standard expense categories 

₃Telecom includes wired and wireless telephone fees as well as the costs of phone and communication devices

₄Gas refers to fuel expenses

₅Mileage refers to reimbursement based on miles driven

In Canada, transactions increased across the board between 2023 and 2024. Looking at the total number of expense transactions in each spend category, train (21 per cent), lodging (19 per cent), miscellaneous (18 per cent), and ground transportation (15 per cent) saw the highest percentage increases.

We’ve also seen a modest growth in mileage (12 per cent) and gas-related transactions (10 per cent) in Canada, which are often tied to driving personal vehicles. However, employees appear to be shifting toward alternative transportation methods. Car rental transactions rose by 12 per cent, ground transportation—including taxis and rideshares—jumped 15 per cent, and train travel saw a significant 21 per cent increase.

In line with this shift, VIA Rail reported 4.1 million passenger trips in 2023, with 96 per cent occurring within the busy Québec City–Windsor corridor. This year, VIA Rail recorded944,300 passengers in the first quarter alone, reinforcing the growing preference for rail travel over congested highways and fluctuating gas prices.

Average Transaction Amount by Category in Canada

In Canada, the average expense transaction amount per category remained largely stable year over year, with a few notable decreases. Categories such as car rental (dropping from $209 to $198), lodging (from $141 to $134), and office expenses (from $145 to $140) saw the most significant reductions. The decline in lodging costs, for example, may reflect improved corporate rates, a focus on cost-conscious travel, or price stabilization in key markets.

Meanwhile, some categories experienced modest increases. Air travel rose from $459 to $471, entertainment from $147 to $152, and parking from $34 to $37. These shifts may be driven by inflation, greater demand, or evolving service preferences. Notably, meals held steady at $53 per transaction.

In 2024, we saw a more stable year for corporate spending in Canada—overall activity picked up, but average costs per transaction remained consistent. This suggests that Canadian organizations are resuming business travel and expenses with greater confidence, while still practicing cost-conscious decision-making.

Cost Control and Compliance

Organizations rely on expense policies and automated expense management tools to rein in employee spending. These methods are important because on average, 15-20 per cent of expense reports contain non-compliant spend. Most stem from errors and wasteful spending—such as duplicate transactions, not providing itemized receipts, or excessive spending against expense report benchmarks—rather than employees acting with malicious intent.

We know this because at SAP Concur, we offer Intelligent Audit and Concur Verify to identify non-compliant spend and potential fraud. Both solutions use artificial intelligence (AI) and machine learning (ML) technology to process more than 80 million compliance checks per month. 

 
Effective expense management must be accurate, seamless, and compliant, as increased investment in employee expenses drives stronger business outcomes, fuels innovation, and fosters deeper customer connections. Streamlining these processes not only helps control costs but also empowers organizations to leverage spending as a strategic tool for growth and competitiveness in today’s evolving business landscape.

Methodology: SAP Concur analyzed aggregate expense transactions in Concur Expense between January 1, 2024, through December 31, 2024, and equivalent time periods from 2023. Expenses for this analysis were tagged as “airfare,” “car rental,” “entertainment,” “gas,” “ground transportation,” “lodging,” “meals,” “mileage,” “miscellaneous,” “office, “other,” “parking,” “telecom,” and “train.” Averages in the charts above include the cost of ancillary and other related charges.

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