Companies told to increase travel budgets

Travel yields 20-fold investment return, business travel body says

Every dollar strategically spent on business travel yields a return on investment of $20. This is one of the messages of a new report by the GBTA Foundation, the Global Business Travel Association’s research division, and American Express Global Business Travel. The report, predominantly aimed at the US market but relevant to the global travel trade, advises companies in all sectors to boost their travel budgets by an average of 4% in order to optimise sales revenues.
The report, based on research conducted over 10 years, claims that “the 20:1 ratio has been steady over the past couple of years; prior to 2008 the ratio was 16:1.” Companies cut back too much on travel during the economic downturn and this actually contributed to the severity of the recession, the report says – “a self-inflicted wound that made the Great Recession of 2007-2009 worse than it had to be.”
Banking, pharmaceuticals and retail tend to be among the sectors of the economy that under-spend most severely on business travel, restricting their possibilities for maximum growth.
BusinessTravelNews
[photo courtesy KLM Royal Dutch Airlines]

x

Check Also

Dallas/Fort Worth, Iceland, Keflavik, airport, route, three, airlines, destination, USA,

Keflavik adds three links to one destination

Three airlines are launching routes between the Icelandic airport and the same destination in the US.

KLM, Vaxjo, Växjö, Sweden, biofuel, Panama, trees, forest, aircraft, fuel, destination, Södra

KLM starts flights – sustainably – to Växjö

The Dutch airline collaborates with local partners in Sweden in an effort to cut emissions.

CFM, CFM56-7B, engine, blow, explode, inspection, FAA, order, directive, Southwest, cancel, flights, safe, American, United

US airlines cancel flights to check engines

A radical measure to immediately check engines follows a mid-air explosion last week.

KLM cityhopper, SAS, ERA Flybe, speakers, conference, European Regions Airline Association, Vienna, 2018, topics, Brexit, EU

SAS, KLM and more to speak at ERA conference

The European Regions Airline Association’s annual conference takes place this week in Vienna.

Alitalia, consortium, Air France-KLM, easyJet, bid, offer, buy, acquisition, offer, Lufthansa

Who’s bidding to take over Alitalia?

The Italian airline, now on state-funded life support, has attracted interest through three offers.

BCD Travel, gds, travelport, Sabre, Amadeus, fee, deal, travel agent, business travel, pay

BCD agrees fee-saving deal with Air France-KLM

The new agreement lets clients book reservations without incurring a distribution surcharge.