The link between business travel and the bottom line just got stronger.
New reports show that dollars invested in business travel are equating higher profits. It’s part of the positive cash flow that has been restoring investor confidence in the U.S. economy in recent weeks.
So how do road warriors keep companies in the black? Here are some secrets to business travel’s success:
In-person is still important
We live in a world where Twitter, Facebook and email connect us electronically. But when you’re signing a big contract or building a relationship with a current client, a little face time goes a long way. “Prospect conversion” – acquiring or retaining clients – requires an investment in business travel. And those investments mean more people are shaking hands offline, which results in firmer deals, partnerships and contracts.
Dollar for dollar, business travel helps
A recent study conducted by Oxford Economics and commissioned by the U.S. Travel Association reported that for every dollar invested in business travel, U.S. companies generate $9.50 in revenue and $2.90 in profit. And every dollar invested in business travel is returned 10 times over in business.
To scale, those numbers add up quick. And the promise for higher profits is worth noting when investing in a business travel program.
Business – and business travel – is growing
A couple of months ago, the Global Business Travel Association predicted business travel will grow by 5% in 2013, confirming a trend that big business is gaining confidence in the U.S. economy.
With more road warriors up in the air, hotels, airlines and car rental companies are building up their business incentives in response, sharing the prosperity in a domino effect. It’s an optimistic time for the U.S. economy and the business travel industry. While contracts and deals could get sealed over Skype, these recent reports suggest people prefer doing business with their peers live, and in living color. If these trends continue, road warriors and businesses are in for a very sunny summer.
Photo credit: SCA Svenska Cellulosa