Leading global business management platform, Travel advantageslaunched TReport on the value of business travel, which reveals that 76% of CEOs say that increasing travel budgets would have a positive impact on their company’s revenue.
The study is based on global research commissioned by TravelPerk in the United States, United Kingdom, Germany and Spain of 2,000 corporate travel decision makers, including C-level professionals, as well as a TravelPerk customer survey of more than 5,200 corporate travelers and travel administrators. The comprehensive report examines how companies around the world are investing in corporate travel to drive growth, engage employees and stay ahead of the competition.
Despite economic headwinds, 61% of U.S. companies expect to invest more in business travel (compared to just 44% of European companies), with an average expected increase of 23%. The top three drivers for increased investment are expansion into new markets (50%), participation in conferences and events (47%), and a greater focus on business development (46%). This investment is being fueled by the tangible benefits of in-person meetings, new business development, and company gatherings.
C-suite leaders also attributed 33% of their company’s total sales growth in 2023 to in-person meetings. Globally, for small and medium businesses, every dollar invested in business travel generated $12 in incremental revenue, driven primarily by new customer acquisition.
“In today’s fiercely competitive landscape, companies recognize the immense value that business travel provides,” said Avi Meir, CEO and co-founder of TravelPerk. “From increasing employee engagement and revenue generated by in-person meetings to getting work done that can only happen by being present, business travel is much more than just a cost center – it is an investment in growth, innovation and company culture. ”
In the US, CEOs report the notable boost in morale that business travel provides for their employees by 82%, compared to 65% for the European average. Saving it has a positive impact on employee retention, and increases company revenue by 85%. In addition to the value it provides to companies, traveling for work offers workers professional development opportunities. Almost three-quarters (73%) of employees say it increases their knowledge and experience, and 63% feel it gives them more opportunities to meet customers and partners. Additionally, 87% of employees say that in-person social events increase morale and engagement. Business travel allows you to develop vital interpersonal skills through in-person interactions. Organizations looking to win the war for talent should consider business travel as a key way to attract and retain workers.
“As someone who has seen this firsthand, I can say that traveling and meeting face-to-face are game-changers for building connection and engagement,” says Lenke Taylor, chief people officer at Personio. “By recognizing travel not as a corporate necessity or just a cost line item, but as a strategic opportunity for collaboration and alignment, organizations can unlock the full potential of an international talent pool and cultivate a truly connected community.”
