What is the relationship of business travel to company performance?
Recent research completed by Oxford Economics* – one of the world’s leading providers of economic analysis – found the following key metrics about business travel as it relates to the bottom line:

• Trade show participation brings back revenue. Business executives identified the average return on conference trade show participation to be in the range of $4-$6 for every dollar invested.

• Curbing business travel can reduce a company’s profits for years. 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.

• Business travel creates revenue and profits. Oxford Economics found that every dollar spent on business travel brought that company $12.50 of increased revenue and $3.80 in new profits.

• Both executives and business travelers estimate that 28% of current business would be lost without in-person meetings

• Both executives and business travelers estimate that roughly 40% of their prospective customers are converted to new customers with an in-person meeting compared to 16% without such a meeting.

• More than half of business travelers stated that 5-20% of their company’s new customers were the result of trade show participation. 

• Executives stated that in order to achieve the same effect of incentive travel, an employee’s total base compensation would need to be increased by 8.5%.

• An increase in government travel spending of $1 million will increase government worker productivity and therefore output by between $4.6 million and $6.3 million.

• Investing in business travel is a means of gaining market share from competitors who restrict their employees from face-to-face interaction. 

To view Executive Summary, click here
To view the full study, click here

 

*About Oxford Economics
Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford University’s business college, Oxford Economics enjoys a reputation for high quality, quantitative analysis and evidence-based advice.