New research conducted by leading global research firm Oxford Economics establishes the first clear link between business travel and business growth.

For every dollar invested in business travel, businesses experience an average $12.50 in increased revenue and $3.80 in new profits, according to the study.

The study is available for download here (Adobe PDF 1,42 MB)

It is the first time that the return on investment of business travel has been successfully measured.

"This study shows that not all spending cuts are smart cuts," said Adam Sacks, managing director of Oxford Economics.

"When companies cut their travel budgets, there are negative consequences that we can now quantify, in terms of lost revenue and profit growth, and in terms of giving competitors a distinct advantage."

The study comes at an opportune time for American businesses that are planning their 2010 budgets and for federal policymakers looking to stimulate a struggling American economy.

The study found that curbing business travel can have a strong negative impact on corporate profits. The average business in the U.S. would forfeit 15 percent of its profits in the first year of eliminating business travel, and it would take more than three years for profits to recover.

"Business travel IS economic stimulus," said Roger Dow, president and CEO of the U.S. Travel Association, which commissioned the study.

"In order to grow, businesses have to invest. This study shows that face-to-face meetings and incentive awards to top performers are among the smartest investments companies can make."

Business travel in the U.S. is responsible for $240 billion in spending and 2.4 million American jobs; $100 billion of this spending and 1 million American jobs are linked directly to meetings and events.

In the first six months of 2009, business travel is down by 12.5 percent. A 10 percent increase in business travel spending would increase multi-factor productivity, leading to a U.S. GDP increase between 1.5 percent and 2.8 percent.

For more information, visit Meetings Mean Business

Click here for copyright permissions!
Copyright 2009 Lucht Publishing

Related Article:

• TEAMS 2009 in New Orleans shatters Attendance Records
• “What do you think will help the meetings industry recover?”
• Forecast Outlines the 'New Normal' for U.S. Business Travel
• New White Paper analyzes independent study data on Association Management Models
• Sydney takes the lion’s share of international business travelers coming to Australia

---

Add this page to your favorite Social Bookmarking websites