A practical guide to forecasting travel costs, preparing for international requirements and building a workforce travel budget that can adapt as projects change.
A finance director reviewing next year’s travel budget has a reasonable question for the operations team: how many people will need to work away in 2027?
The answer might be 200 employees across several projects. It might be 350 if two contracts go ahead. Some teams will work away for a few nights, while others will need accommodation for months. Nobody can confirm every start date yet, but Finance still needs a number to take into budget meetings.
And that number needs to be defensible.
The difficulty with workforce travel budgeting is that accommodation, transport and expenses depend on decisions made elsewhere in the business. Project schedules change, employees move between sites, hotel availability fluctuates and new international requirements can affect travel arrangements.
There is some encouraging news for 2027. According to the Global Business Travel Association’s 2027 forecast, the rate of growth in global hotel and airfare prices is expected to moderate.
But slower price growth does not automatically translate into a smaller travel budget.
A company opening two new project sites could spend considerably more on accommodation even if average hotel rates remain relatively stable. Another business might reduce its travel costs by changing how accommodation is booked, improving policy compliance or negotiating better long-stay arrangements.
For finance teams, the priority is to understand the operational requirements behind the numbers and identify where spending can be managed before commitments are made. This guide covers the market forecasts, international changes, budgeting methods and financial controls worth reviewing now, along with a practical planning framework for 2027.
1. What will workforce travel cost in 2027?
The first question is whether travel prices are expected to rise, fall or remain stable next year. The answer all depends on what you’re booking and where employees are travelling.
The latest business travel cost forecasts
The GBTA and ALTOUR 2027 Global Business Travel Forecast projects the following changes:
|
Travel category |
2026 forecast |
2027 forecast |
|
Global average airfare |
4.7% increase |
1.5% increase |
|
Global hotel average daily rate |
3.7% increase |
1.8% increase |
|
Meetings and events cost per attendee per day |
Approximately 3.0% increase |
Approximately 1.5% increase |
The forecast places the global average hotel daily rate at approximately $171 in 2027, compared with $168 in 2026. It also projects more moderate airfare increases after a period of stronger pricing pressure.
These figures are useful for understanding the broader market, but they should not be applied indiscriminately to every project.
A team working in rural Scotland will face different accommodation conditions from employees travelling to central London. A project requiring 80 rooms during a major local event may encounter higher prices even when national averages appear relatively stable.
For 2027, finance teams should forecast accommodation costs by location and workforce demand, using global figures as context rather than a universal percentage increase.
Three cost pressures worth watching
Accommodation availability: A large workforce arriving in a location with limited hotel capacity can influence the rates available. Bookings made close to the start date may also reduce the choice of suitable properties.
Transport and energy costs: Fuel prices, rail fares, airline operating costs and local transport availability can affect the total cost of getting employees to work. The GBTA forecast highlights continuing energy and operational cost pressures despite expectations of moderation in 2027.
Meals and incidental expenses: Daily allowances may need reviewing as food, parking and other costs change. For longer projects, even a modest increase in allowances can materially affect the overall budget.
Finance teams should establish separate assumptions for each category instead of applying one inflation figure to the entire travel budget.
2. International travel changes that could affect 2027 budgets
For businesses sending employees across borders, travel planning also involves entry requirements, authorisations and increasingly digital financial processes.
Several European changes are especially relevant to 2027. They do not all apply to every business traveller, and some are already in force, but they should be reflected in next year’s planning.
European Union: ETIAS travel authorisation
The European Travel Information and Authorisation System (ETIAS) is expected to begin operating in the final quarter of 2026, according to the European Union’s official ETIAS website. It will apply to eligible visa-exempt travellers visiting participating European countries for short stays, including many British passport holders.
The published application fee is €20, with exemptions for certain groups, including applicants under 18 and over 70.
For a company sending employees from the UK to European project sites, this introduces an additional administrative step.
Finance and travel managers should:
- Identify employees who may require ETIAS authorisation.
- Establish who will arrange and pay for applications.
- Allow sufficient time for authorisation before travel.
- Keep track of authorisation validity and passport changes.
- Check whether the intended work is permitted under the relevant immigration rules.
ETIAS is a travel authorisation, not a work permit. Employees travelling to perform installation, construction, engineering or other hands-on work may need additional permissions depending on the destination and activity.
The precise ETIAS launch date and any transitional arrangements should be checked against official guidance before employees travel.
European Union: the Entry/Exit System
The EU’s Entry/Exit System (EES) became fully operational at relevant external border crossings on 10 April 2026. It electronically records information about eligible non-EU travellers entering and leaving participating European countries for short stays, including biometric information.
For businesses managing regular UK–EU workforce movements, the main budgeting implications concern travel planning and administration.
Travel managers should check that employees understand the border procedures, allow realistic transfer times and monitor short-stay limits.
Neither EES nor ETIAS replaces the need to assess whether employees are legally permitted to undertake their intended work.
United Kingdom: electronic travel authorisation
The UK began enforcing its electronic travel authorisation requirement for relevant non-visa nationals in February 2026.
This matters for businesses bringing overseas employees, specialists or contractors into the UK.
According to the Home Office, travellers who require an ETA must have the appropriate permission before travelling.
The published fee from October 2026 is £20 per ETA.
For 2027 planning, businesses should identify which incoming workers require an ETA, visa or another immigration status, rather than assuming that every overseas visitor follows the same process.
France: another e-invoicing deadline arrives in 2027
France is introducing mandatory electronic invoicing in stages.
From 1 September 2026, businesses within the French regime must be able to receive electronic invoices, while large and intermediate-sized businesses must issue them.
From 1 September 2027, the obligation to issue electronic invoices extends to small, medium-sized and micro-enterprises within scope. Related electronic reporting requirements also follow the staged implementation.
These dates are confirmed by the French tax administration.
For organisations with French entities or suppliers, the practical questions concern invoice formats, accounting software compatibility and how supplier information is processed.
The rules should be assessed against the entities and transactions involved. A UK company purchasing accommodation in France should not automatically assume that every invoice it receives falls within the French domestic B2B mandate.
Belgium: structured invoicing is already mandatory
Belgium introduced mandatory structured electronic invoicing for most domestic B2B transactions between Belgian VAT-liable enterprises on 1 January 2026.
The system uses the Peppol network, and ordinary emailed PDFs are insufficient for invoices within the mandate’s scope.
Businesses with Belgian entities should already have appropriate processes in place, making 2027 an opportunity to review compliance and invoice handling rather than wait for another deadline.
United Kingdom: prepare for the 2029 e-invoicing mandate
The UK government plans to introduce mandatory e-invoicing for VAT invoices from April 2029.
Although that deadline falls beyond the 2027 budget, HMRC expects to publish further technical guidance and specifications during the implementation period.
Finance teams reviewing their systems in 2027 should therefore examine whether new travel invoicing and accounting arrangements will support future structured invoice requirements.
A useful international planning summary is:
|
Country or region |
Change |
2027 planning implication |
|
EU/Schengen-related destinations |
ETIAS expected to launch in late 2026 |
Allow for authorisations, eligibility checks and administration |
|
EU participating borders |
EES operational since April 2026 |
Review border procedures and short-stay compliance |
|
UK |
ETA requirements already enforced |
Check permission requirements for incoming overseas workers |
|
France |
SME and micro-enterprise e-invoicing phase from September 2027 |
Review relevant French entity and supplier invoicing processes |
|
Belgium |
Domestic B2B structured e-invoicing mandatory since 2026 |
Verify existing processes and supplier compliance |
|
UK |
VAT e-invoicing mandate planned for 2029 |
Include future system readiness in finance planning |
These are different types of requirements. Entry authorisations affect travellers, while e-invoicing rules affect financial transactions. Neither should be confused with permission to work abroad.
3. Build the 2027 budget around workforce demand
One of the most common budgeting mistakes is taking last year’s travel expenditure and increasing it by an inflation assumption.
That approach can work for relatively stable costs. Workforce travel is often closely connected to project delivery, so a change in workforce numbers or project duration can have a much greater financial impact than a change in hotel prices.
Start with your 2026 travel data
Before asking department heads for their 2027 budgets, review the travel information already available.
Identify:
- Total accommodation spend and room nights
- Average nightly rate by location
- Rail and other transport expenditure
- Meals, parking and other employee allowances
- Cancellation and no-show charges
- Booking lead times
- Spending by project and cost centre
- Out-of-policy bookings and missed savings opportunities
Look at the reasons behind the largest variances. If a project exceeded its travel budget by £40,000, was that because the workforce increased, the project ran longer or the accommodation rate was higher than expected?
Each explanation should lead to a different assumption for 2027.
Ask Operations for a workforce forecast
Finance teams need a lot more than an annual headcount figure. Ask project managers to estimate the number of employees working away by month, their likely locations and the expected duration of each assignment.
A useful forecast should distinguish between confirmed contracts, probable work and opportunities that have yet to be awarded.
For example:
|
Project |
Status |
Travellers |
Estimated duration |
Planning approach |
|
Manchester installation |
Confirmed |
35 |
8 weeks |
Include in base budget |
|
Birmingham refurbishment |
Confirmed |
50 |
6 weeks |
Include in base budget |
|
Bristol maintenance contract |
Probable |
20 |
12 weeks |
Include in scenario forecast |
|
Glasgow expansion |
Unconfirmed |
60 |
10 weeks |
Include in upside scenario |
This makes the relationship between operational activity and travel costs much clearer, but it also prevents Finance from committing to accommodation spending for projects that may never begin.
Calculate room nights before accommodation costs
For workforce travel, room nights are one of the most useful budgeting drivers.
Room nights = number of travellers × nights away per traveller
If 50 employees need accommodation for five nights a week over six weeks, the project requires 1,500 room nights. At £95 per night, the accommodation budget is £142,500.
If the average rate increases to £100, that becomes £150,000.
But if the project extends by two weeks, the additional 500 room nights would cost £47,500 at the original rate.
This illustrates why project duration and workforce demand can have a much greater effect on spending than moderate hotel price inflation.
4. Create three scenarios for your 2027 travel budget
A single annual forecast can become outdated when projects are delayed, contracts are awarded or workforce requirements change.
Instead of preparing numerous complicated models, start with three practical scenarios.
Base case: the work you can reasonably expect
Include confirmed projects, recurring travel requirements and a realistic allowance for probable work. Use recent accommodation rates and supplier information, adjusted for expected market conditions.
Downside case: projects are delayed or reduced
Model what happens if a major contract starts three months later than expected or requires fewer employees.
Travel expenditure may fall, but Finance should also identify any accommodation deposits, minimum commitments or cancellation charges that could remain payable.
Upside case: additional work is secured
Calculate the accommodation and transport required if the business wins further contracts.
This is particularly important where a new project could require 50 or 100 employees to work away in a location with limited hotel availability.
|
Planning measure |
Base case |
Downside case |
Upside case |
|
Annual room nights |
12,000 |
9,000 |
16,000 |
|
Average nightly rate |
£95 |
£95 |
£100 |
|
Accommodation budget |
£1,140,000 |
£855,000 |
£1,600,000 |
The scenarios give leadership a clear view of how much additional travel expenditure could be required as the project pipeline changes.
They also help procurement and travel managers prepare for increased accommodation demand without committing to unnecessary spending too early.
5. Set your travel budget by category
Once workforce demand is established, divide the forecast into categories that can be monitored throughout the year.
Accommodation
Accommodation will often be the largest category for businesses with mobile workforces.
Forecast costs using expected room nights, average nightly rates and the locations where employees will be staying.
For longer assignments, compare hotels with self-catering apartments and ask about negotiated rates.
Roomex gives businesses access to over two million hotels and self-catering apartments, including options suitable for long stays and group bookings.
Rail and other transport
Estimate the number of journeys employees will make, taking account of working patterns and project locations.
Include rail fares, fuel, mileage, parking and other relevant transport costs.
Where employees travel regularly between the same locations, review whether different booking arrangements could reduce costs.
Roomex offers rail booking through its Trainline integration, helping businesses manage rail alongside accommodation expenditure.
Meals and employee allowances
Daily meal allowances should reflect the company’s policy and the practical circumstances of each assignment.
An employee staying away for three nights may have different needs from somebody spending several months on a project. Make sure employees understand which costs are covered and how additional expenses are approved.
Changes and cancellations
Include an allowance for project extensions, workforce changes and unavoidable cancellations. Review historical charges to establish a realistic figure rather than selecting an arbitrary percentage.
International travel requirements
For relevant cross-border assignments, allow for entry authorisations, visas, work permits, additional administration and any required professional advice.
These costs should be assigned to the projects or departments responsible for the travel.
6. Decide where to control spending before bookings happen
Finance teams can identify unnecessary expenditure after the fact, but preventing avoidable costs is generally more valuable.
For 2027, review whether employees have suitable booking options and clear spending rules before travel is arranged.
Make the approved booking process practical
If employees cannot find accommodation near their worksite through the company booking system, they may book independently.
This can result in missed rates, inconsistent invoices and reduced visibility over spending.
Roomex provides access to a broad accommodation selection through one platform, including exclusive rates and properties suited to workforce requirements.
Set budgets that reflect the location
A £90 nightly allowance may be reasonable for one project and unrealistic for another.
Review accommodation budgets by location, taking account of local availability, parking, cancellation terms and the distance from the worksite.
Roomex allows businesses to establish custom travel policies and daily budgets, helping employees choose suitable accommodation within company rules.
Review the true cost of a stay
The cheapest nightly rate may involve higher transport costs or a less practical location. Compare the overall cost of accommodation, parking, travel to site and other necessary expenses.
For longer projects, self-catering accommodation may also offer practical advantages.
Reduce avoidable cancellation costs
Ask project managers to communicate workforce changes as early as possible.
Keep track of booking amendments and cancellation deadlines, especially when large teams are involved.
Roomex provides booking support and cancellation charge recovery, helping businesses investigate charges that may be recoverable.
7. Give finance teams better visibility over travel expenditure
Travel budgeting becomes difficult when booking information, expense claims and supplier invoices sit in different systems.
A finance manager may know how much was paid to hotels last month but struggle to establish which projects generated the spending or whether suitable lower-cost accommodation was available.
For 2027, establish a consistent reporting structure.
At minimum, Finance should be able to review:
|
KPI |
Why it matters |
|
Actual spend against budget |
Shows where projects are exceeding forecasts |
|
Room nights booked |
Connects accommodation spending to workforce demand |
|
Average nightly rate |
Identifies pricing changes by location |
|
Booking lead time |
Highlights potentially expensive late bookings |
|
Policy compliance |
Shows whether bookings follow company rules |
|
Cancellation charges |
Identifies avoidable or recoverable costs |
|
Potential savings |
Reveals suitable lower-cost options that were available |
|
Spend by cost centre |
Helps allocate costs to the correct projects |
How Roomex supports financial reporting
Roomex helps businesses centralise workforce accommodation, rail and related travel information.
Finance teams can use consolidated monthly invoicing and cost-centre allocation to simplify reconciliation and understand spending across different projects.
Roomex Analytics provides visibility into travel activity, while Insights Pro helps identify two important measures:
- Actual Savings: Savings achieved when a selected hotel was cheaper than comparable alternatives available at the time.
- Potential Savings: Opportunities where a suitable lower-priced alternative was available but another property was booked.
Insights Pro uses booking and search information to support these comparisons, taking account of factors such as location, hotel rating and cancellation terms.
This gives finance and procurement teams useful evidence when reviewing accommodation policies, booking behaviour and opportunities for future savings.
8. Build a quarterly review into your 2027 budget
The annual budget should establish the financial plan, but regular reviews are needed to keep it relevant.
For workforce travel, a monthly operating review and quarterly reforecast can provide a practical balance.
Monthly: investigate the biggest changes
Review actual spending against budget by project and category.
Focus on the variances that materially affect costs.
For example, if accommodation spending increases by 15%, establish whether the business used more room nights, paid higher rates or experienced a combination of both.
Quarterly: update the remaining forecast
Ask Operations to refresh the workforce pipeline and expected project durations.
Update accommodation demand, average rates and transport requirements for the remaining months.
This helps Finance distinguish between temporary overspending and a genuine change to the annual outlook.
Agree triggers for an immediate review
Some changes deserve attention before the next scheduled reporting cycle.
These could include:
- A major project extending by more than two weeks
- A new contract requiring substantial accommodation
- Average nightly rates exceeding the approved assumption
- A significant increase in cancellation charges
- Workforce numbers changing materially
- New international requirements affecting planned assignments
Set thresholds appropriate to the business and assign responsibility for responding to each one.
The purpose is to ensure that material changes lead to decisions while there is still time to manage their financial impact.
9. Your 2027 workforce travel budget planning checklist
Use this checklist when preparing the annual budget and reviewing travel management arrangements.
Forecasting and finance
- Review 2026 accommodation, rail and expense spending.
- Identify the largest budget variances and their causes.
- Obtain monthly workforce forecasts from project managers.
- Separate confirmed, probable and unconfirmed projects.
- Calculate expected room nights by location.
- Build base, downside and upside scenarios.
- Establish assumptions for accommodation, transport and allowances.
- Include an appropriate contingency for changes and delays.
Travel management and suppliers
- Review booking platform adoption and policy compliance.
- Identify locations with recurring accommodation demand.
- Compare long-stay and group accommodation arrangements.
- Review negotiated rates and missed savings opportunities.
- Check cancellation procedures and recoverable charges.
- Ensure bookings are assigned to the correct project cost centres.
International readiness
- Identify employees expected to travel internationally.
- Review ETIAS, EES and UK ETA requirements where relevant.
- Check visas and permission-to-work requirements separately.
- Review invoicing obligations for relevant European entities.
- Confirm that accounting systems can support changing requirements.
Reporting and accountability
- Assign an owner to each significant travel budget.
- Agree monthly reporting requirements.
- Schedule quarterly reforecasts.
- Establish thresholds for investigating overspending.
- Make sure Finance, Operations and travel managers use consistent information.
10. A practical 2027 budget kickoff plan
For finance teams beginning the process now, the first month should focus on gathering the information needed to build a reliable forecast.
|
Week |
Priority |
Output |
|
Week 1 |
Review 2026 travel spending and variances |
Baseline expenditure report |
|
Week 2 |
Meet project and operations managers |
Workforce demand forecast |
|
Week 3 |
Review rates, suppliers, policies and international requirements |
Cost assumptions and risk register |
|
Week 4 |
Build scenarios and agree responsibilities |
Draft 2027 travel budget |
Once the initial budget is complete, document the assumptions behind it.
For each major project, record the expected workforce, duration, location, accommodation rate and the circumstances that would require the forecast to change.
This provides a clearer basis for future conversations with department heads and senior leadership.
How much should businesses increase their travel budgets for 2027?
There is no single percentage suitable for every organisation. The GBTA forecasts global hotel rate growth of 1.8% and airfare growth of 1.5% in 2027, but individual businesses may experience different costs depending on locations, booking patterns and workforce demand. Finance teams should combine market forecasts with their own 2026 spending data and planned project activity.
When should finance teams start preparing their 2027 travel budget?
Businesses should begin before annual budget submissions are due, allowing time to review historical expenditure and obtain workforce forecasts from Operations. Starting in the final quarter of 2026 may be too late for organisations with complex project pipelines or substantial accommodation requirements.
What should a workforce travel budget include?
A workforce travel budget should include accommodation, rail and other transport, meals, parking, employee allowances, cancellation charges and contingency. Businesses operating internationally should also account for relevant travel authorisations, visas and work-related compliance costs.
How can finance teams forecast travel costs when projects are uncertain?
Use separate scenarios for confirmed, probable and unconfirmed work. Calculate accommodation requirements using expected room nights and apply realistic rates for each location. Update the forecast as contracts are awarded and project schedules become clearer.
What international travel changes should businesses prepare for in 2027?
Relevant changes include the expected introduction of ETIAS, the EU’s operational Entry/Exit System and existing UK ETA requirements. Businesses with European entities should also review country-specific e-invoicing rules, including France’s September 2027 deadline for smaller businesses within scope. Immigration and work-permit requirements must be assessed separately.
How can businesses reduce workforce accommodation costs in 2027?
Start by reviewing booking lead times, accommodation rates, long-stay requirements and missed savings opportunities. Centralising bookings, using appropriate travel policies and comparing suitable accommodation can help reduce unnecessary expenditure. Roomex provides exclusive rates, a broad accommodation selection and analytics to support these decisions.
How does Roomex help finance teams manage travel budgets?
Roomex centralises workforce accommodation and rail bookings, supports custom travel policies and provides consolidated invoicing with cost-centre allocation. Its analytics tools help finance teams understand spending patterns, while Insights Pro identifies accommodation savings achieved and potential savings opportunities.
Should businesses use AI to forecast travel spending?
AI-supported analysis may help finance teams identify spending patterns, unusual changes and forecasting opportunities. However, any forecast still needs reliable data and input from project managers. Finance teams should distinguish between tools that provide established reporting and those offering verified AI forecasting capabilities, rather than assuming all travel analytics are AI-powered.
Plan your 2027 workforce travel budget with Roomex
The most useful travel budget is one that Finance can explain, Operations can work with and both teams can update when circumstances change.
For 2027, that means understanding the number of employees likely to work away, where they’ll be staying, how long projects are expected to run and which costs can be controlled before bookings are made.
It also means preparing for international requirements, reviewing supplier arrangements and giving finance teams reliable information throughout the year.
Roomex helps businesses manage these requirements through a workforce-focused travel platform, offering:
- Access to over two million hotels and self-catering apartments
- Exclusive accommodation rates
- Group booking and long-stay support
- Custom travel policies and daily budgets
- Rail booking and expense management
- Consolidated monthly invoicing and cost-centre allocation
- Analytics and Insights Pro savings reporting
- Dedicated customer support and cancellation charge recovery
With no sign-up fee, no contract and no travel management charges, businesses can explore a more centralised approach to workforce travel without adding the usual booking management fees.
Preparing your 2027 travel budget? Book a Roomex demo to see how our platform can help you forecast accommodation requirements, control spending and give Finance better visibility across every project.
Disclaimer: Market projections and regulatory information reflect official sources available in October 2026. Forecasts may change, and international travel requirements should be checked before booking or deployment. The worked examples and budgeting frameworks are illustrative.
