Business travel takes off again: new report shows companies are investing in travel to drive growth
- For SMBs and mid-size companies, each US dollar invested in business travel generates an incremental revenue of $12
- 76% of CEOs and 60% of CFOs agree that increasing travel budgets would positively impact their company’s revenue
- C-suite leaders attributed 34% of their company’s total sales growth in 2023 to in-person meetings
- Business travel makes employees more likely to stay in their current job
London, 13th June 2024 – Leading global business travel management platform, TravelPerk, today launched The Value of Business Travel Report, which reveals that 76% of CEOs say increasing travel budgets would positively impact their company’s revenue.
The study is based on global research commissioned by TravelPerk in the United Kingdom, the United States, Germany and Spain, of 2,000 business travel decision-makers including C-suite professionals, as well as a TravelPerk customer survey of over 5,200 business travelers and travel admins. The comprehensive report examines how companies around the world are investing in business travel to drive growth, engage employees, and stay ahead of the competition.
Despite economic headwinds, nearly half (49%) of the 2,000 companies surveyed expect their travel budgets to increase in 2024, with an average expected rise of +20%. The top three reasons were to help businesses expand into new markets (47%), attend more conferences and events (45%) and grow their headcount (39%). This investment is being fuelled by the tangible benefits of in-person meetings, new business development, and company get-togethers.
For employees who travel for sales activities, a projected 30% of the sales revenue driven by travel would be lost without in-person meetings with clients and prospects. For SMBs and mid-size companies, each US dollar invested in business travel generates an incremental revenue of $12, primarily driven from new customer acquisition*.
“In today's fiercely competitive landscape, companies recognise the immense value that business travel delivers," said Avi Meir, CEO and co-founder of TravelPerk. “From the boost in employee engagement and revenue generated from in-person meetings, to conducting work that can only happen by being there, business travel is far more than just a cost center – it's an investment in growth, innovation, and company culture.”
Traveling for work offers professional development opportunities - 61% of employees say it improves networking abilities, and 64% feel it increases visibility within their company. Moreover, 85% of employees state that in-person social events boost morale and engagement. Business travel allows vital soft skills development through face-to-face interactions. Organizations seeking to win the war for talent should consider business travel as a key way to attract and retain workers.
Lenke Taylor, Chief People Officer at Personio, added: “As someone who's seen it firsthand, I can say that travel and meeting face-to-face are game-changers for building connection and engagement. In recognising travel not as a corporate necessity or purely a cost line, but as a strategic opportunity for collaboration and alignment, organizations can unlock the full potential of an international talent pool and cultivate a truly connected community.”
The report also explores the role of AI in shaping how companies invest in travel. 38% of CEOs surveyed said AI will increase the need for in-person meetings and business travel. Automation won’t remove the need for human connection anytime soon and instead can be implemented to take care of repetitive tasks for employees.
Mette Gade, Chief Product Officer at Pleo, added: “Through AI and automation, businesses can effectively manage expenses by optimizing spending, detecting anomalies, contextualizing data in real-time, and forecasting expenditure. By leveraging the right technology stack, tasks become not just manageable, but enjoyable."
The full 2024 Value of Business Travel Report is available for download at travelperk.com/value-of-business-travel-report/
Notes to the Editor
Methodology
In partnership with market research agency OnePoll, TravelPerk surveyed 2,000 business travel decision-makers (500 in each market) from C-Suite leaders to Vice Presidents, Directors and Managers, across North America and Europe: the United Kingdom, the United States, Germany and Spain. Respondents are employed in companies that spend over 25,000 of their local currency (USD, GBP, EUR) on business travel each year. The research also surveyed over 5,200 TravelPerk customers made up of 4,622 business travelers, and 625 travel managers and admins. The surveys were conducted from April 10th-17th. TravelPerk combined the quantitative research data with proprietary data from its own platform and from partners.
*To calculate estimated revenue generated per dollar spent on business travel, different insights were taken into account. Annual business travel spending relative to company revenue was examined, and external data indicating the percentage of revenue stemming from new customer acquisitions was factored in. The analysis also looks at the survey research data, which revealed that for SMB and mid-size companies, 38% of travel spend is dedicated to sales activities such as acquiring new clients, and that 30% of sales employees' individual revenue hinges on in-person meetings with clients.
About TravelPerk
TravelPerk is a hyper-growth SaaS business travel platform and a pioneer in the future of business travel. Its all-in-one platform gives travelers the freedom they want whilst providing companies with the control they need. The result saves time, money, and hassle for everyone.
TravelPerk has industry-leading travel inventory alongside powerful management features, 24/7 customer support, state-of-the-art technology, and consumer-grade design, all of which enable companies and organizations worldwide like Red Bull, GetYourGuide and Aesop to get the most out of their travel.
Backed by world-class investors like SoftBank Investment Advisers, General Catalyst, Kinnevik, Greyhound Capital, Felix Capital, Target Global, LocalGlobe, Spark Capital, and Heartcore — investors in some of the most disruptive companies in tech, including Airbnb, Uber, Slack, Twitter, Trello, Zalando and Delivery Hero — TravelPerk is reinventing business travel with an end-to-end solution that works. Visit www.travelperk.com for more information.