In a world where remote work is becoming the new normal, it may seem counterintuitive that companies are increasing their business travel budgets. Contrary to popular belief, economic pressures are not affecting travel decisions, in fact, multiple companies indicate that they plan to allocate more funds to travel.
According to a recent Global Business Travel Association survey, 46% of companies plan to increase their travel budgets, while only 18% plan to decrease them. But why are companies doubling down on business travel?
Companies recognize the value of face-to-face interaction and are willing to invest in it. This is a great opportunity for businesses to use business travel to their advantage and stay ahead of the competition. This article will explore the reasons behind this trend and how companies are doing business travel.
In this article, we'll take a look at:
According to GBTA’s survey earlier this year, companies will allocate 18% of their travel budget to send their employees to events By participating in industry events, companies can stay up-to-date with the latest trends and gain new insights into their industry. Additionally, it provides an opportunity to stay relevant and build relationships with other professionals in the industry.
According to the Corporate Travel Community, the majority of companies around the world plan to travel this year, indicating that attending events and conferences is still a key strategy for businesses to stay ahead of the competition.
A Forbes survey found that 84% of business executives prefer face-to-face meetings. Respondents said that face-to-face meetings are best for persuasion (91%), leadership (87%), engagement (86%), accountability (79%), and decision-making (82%). Therefore, investing in business travel to facilitate face-to-face meetings can significantly boost sales and enhance business relationships.
According to a study by Harvard Business Review, a face-to-face request is 34 times more successful than an email. This shows the power of in-person interactions, allowing for better communication and personal connections.
In-person meetings are crucial for building relationships with customers and partners. They allow for better communication and personal connections, leading to increased trust and loyalty. Face-to-face meetings are also more effective in closing deals compared to virtual communication. Therefore, investing in business travel to facilitate in-person meetings can be strategic for businesses looking to build long-lasting relationships and improve their sales performance.
Service trips not only benefit the community and customers, but they can also benefit the company’s bottom line.
According to a Harvard Business Review article, a 5% increase in customer retention can lead to 25%-95% higher profits. Companies can build stronger customer relationships by investing in service trips, increasing loyalty and retention. Furthermore, service trips can help companies identify and retain their “right customers,” who are more profitable and have higher lifetime value.
Overall, service trips provide a valuable opportunity for companies to support their customers and communities while driving business success.
Companies must prioritize employee training and development to stay competitive in today’s rapidly evolving business landscape. Inflation and changing industry trends have made this more important than ever. Effective T&E management can help optimize training budgets and ensure investments in employee development are used efficiently.
Business travel policies and travel managers can also play a crucial role in managing travel spending related to training programs. In addition, HR leaders can leverage professional development opportunities to attract and retain top talent. At the same time, in-person meetings during training sessions allow employees to network and build relationships.
Employee training directly impacts a company’s bottom line, as demonstrated by the Harvard Business Review study, which found that companies investing in training achieve 24% higher profit margins than those that don’t. A culture of lifelong learning can benefit both the organization and its employees.
Despite the current economic pressures, companies still recognize the value of business travel for building relationships, closing deals, supporting customers and communities, and investing in professional development. With the right tools and corporate travel management services, companies can navigate these pressures and maximize their travel budget.
Partnering with TruTrip can provide companies with a user-friendly platform and expert travel management services, helping them optimize their travel spend and make the most out of their business trips.
Book a demo or sign up for a free trial on TruTrip today and start your journey towards successful and meaningful business travel.
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