Nice returns on travel investment during recession
Businesses that continued to allow employees to travel during the recession are now more profitable as a result, a new study suggests, while companies that cut back on business travel lost out.
The aim of the study, conducted by Oxford Economics and commissioned by the US Travel Association, was to show how travel can affect a company’s profits.
Looking at government data on a wide range of industries over an 18-year period, it found that for every dollar invested in business travel, companies generated $9.50 in revenue and $2.90 in profit.
An accompanying survey of almost 300 business travelers found that 57% of respondents realised that cutting their travel budgets during the downturn hurt their company’s performance. Only 4% said it helped.
[photo courtesy Singapore Airlines]