G
lobal business travel spend reached
a record-breaking $1.33 trillion in
2017, a figure that is only set to rise
in the coming years. That’s an astonishing
number (it’s larger than Australia’s GDP)
and one that begs the question: why are
companies spending so much on travel?
Haven’t face-to-face meetings gone the
way of dial-up internet and fax machines?
The short answer—when it comes to business,
travel matters.
Let’s take a few minutes to look at why.
The first reason is the most obvious, as study
after study has shown that travel spend
reaps significant rewards on a company’s
bottom line. Oxford Economics USA
published a well-regarded study called “The
Return on Investment of U.S. Business Travel”
that concluded that every dollar spent on
business travel results in a resounding $12.50
in incremental revenue. That alone is worth
pondering, but ROI figures are just the tip of
the iceberg. Business travel has many hidden
benefits that are incredibly impactful on a
company’s long-term growth and success.
Let’s take a look at who stands to benefit
from a well-managed travel program.
Why Travel Matters
to Your Clients
» » Face-to-face meetings are essential
for building rapport and trust
» » The implicit time and effort required
shows clients you value their business
» » In-person meetings foster engagement,
innovation and creativity
» » Non-verbal cues are essential
for effective communication
Of course, business travel can be a hassle.
Long security lines, over-crowded planes
and time away from home can be taxing
on employees. But many people actually
enjoy traveling for work and consider it a
perk of their job. This is especially true of
companies that take employee satisfaction
into consideration when making travel
policy decisions.
Why Employees Love to Travel for
Work and How Companies Benefit
» » New experiences build
confidence and skills
» » Exposure to different perspectives boosts
problem-solving skills and creativity
» » Loyalty program points offset vacation
costs resulting in higher morale
» » The opportunity to explore new
places increases job satisfaction
In addition, there are myriad other ways
in which travel has direct impact on the
growth and success of a business. The
Oxford Economics study also noted that,
“The average business in the U.S. would
forfeit 17% of its profits in the first year of
eliminating business travel. It would take
more than three years for profits to recover.”
It’s not hard to see why business trips
are more than worth their cost when you
consider the facts.
Why Business Travel is the
Cornerstone of Success
» » Prospective clients are 50%
more likely to sign a contract
after an in-person meeting
» » Face-to-face meetings correlate
to higher client retention rates
» » Well-managed travel programs attract
and help retain talented employees
» » Travel offers an abundance of
both planned and unplanned
networking opportunities
You can see why companies choose to invest
in corporate travel programs, but as a
company’s second or third most controllable
expense, it’s also important to remember
that more isn’t necessarily better. There’s
no denying travel is a serious investment
of both time and money, which is why it’s
important to invest wisely. A well-managed
travel program provides all the benefits of
travel while controlling costs. The result? A
win-win for clients, employees and the long-
term success of your company.
Elevating the Art of Business Travel
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