In January 1914, Henry Ford did something which many of his peers thought bordered on lunacy. During a period of financial downturn, he decided to double the average wage of his employees to a whopping $5 an hour for a 40-hour working week. In doing this, not only did he stabilise his workforce, but he also recognised, and laid the foundations, for immediate economic growth.

Faced with the current economic uncertainty in the aftermath of the pandemic, present-day business leaders can draw plenty of inspiration from his vision. While it is true that the average company only grew at a rate of 2.8% per annum during the decade preceding COVID-19, only 12% of companies recorded growth rates that exceeded 10% per year.

 It is also important to remember that many unicorns were founded during periods of recession. This includes the likes of Hewlett Packard in 1937, Microsoft in 1975, Electronic Arts in 1982 and Uber in 2009. It is also widely acknowledged that growth leaders can generate between 80% to 90% more shareholder values than their peers over 10 years.

So, despite the potential challenges ahead, instead of cutting back and keeping your powder dry, perhaps the focus should be on achieving inclusive and sustainable growth within your business, as a method of resilience.

With this in mind, in this article, we will outline why global business travel should still be regarded as a priority and a top contributor to international growth.

Why is Business Travel an important factor for growth

Most travel managers and business executives agree that business travel is a crucial element in hitting your business goals. Mainly because of the part it plays in forming new business relationships, closing deals and company decision-making. 

However, as business travel often accounts for up to 10% of an organisation’s yearly budget, it is usually one of the first things that get cut when the threat of recession hits, especially in start-ups and SMEs.

But as understandable as this might be, it is tantamount to a band-aid solution, and definitely not the most effective, strategic way of dealing with the situation.

Despite working in a landscape of heightened digital connectivity – with video conferencing and online messaging tools being increasingly utilised – a cogent value should always be placed on business travel.

Here is why.

1. Reconnect with clients and business partners around the globe

While Zoom calls and other applications for virtual meetings were a Godsend during the pandemic, there is simply no better way to offer customer service excellence with existing clients than via a face-to-face meeting. Fostering relationships is a major factor when it comes to why a company should implement a programme of business travel.

Ultimately, most people are traditionalists, in the sense that they like to do major business with people, in a face-to-face manner.

Therefore, if you want to facilitate greater loyalty amongst your existing client base and significantly lessen its rate of turnover, you must accept that your staff, and in particular, your account managers and executives, need to interface in person with them regularly.

2. Build new connections

Just as it follows that you can strengthen relationships with existing clients via business travel, it is also true that you can build new connections as well.

Whether this is in the form of people you meet at conferences, exhibitions or events, or as an introductory meeting with a prospect who expressed interest in an initial email or letter you sent them, there is no doubting the value and potential that corporate travel presents you with.

If you are still sceptical, the key thing to be mindful of here is that many of your competitors are meeting potential new customers of yours, as a direct result of their corporate travel management strategy.

Should that not be reason enough to keep yours going, global business travel also gives you plenty of networking opportunities above and beyond your primary purpose.

3. Closing deals

Perhaps the most compelling reason for business travel is to close deals and get things done.

This is because when it comes to making key decisions, face-to-face meetings are far more effective than those hosted virtually.

Not least because your physical presence in an office often creates a greater sense of urgency and finality, than an online meeting does.

It also enables you to read people’s body language better, gives you more scope for negotiation and even asks tougher questions that you might not feel are appropriate to raise online.

4. Opportunity to put your name on an international level

At the end of the day, the success of your company goals is often related to the quality of the people you have working for you.

So, it follows the better quality of individuals you have working for you, the more you should expose them to an international network of peers and industry contacts.

Whilst there are several online strategies you can encourage them to adopt, such as blogging, podcasts and of course virtual meetings, the best way for your employees to become known on an international level is to allow them to attend meetings, and business-related events, in the name of networking via business travel.

5. Better employee empowerment and motivation

In the same way, as your company has probably introduced a hybrid workforce and flexible policies, you should also have a flexible travel policy in place too.

All employees should be empowered to travel to any destination, at any time, throughout any distance, to be able to do their job properly for the good of the company.

This is especially relevant if they have a role where the success of bringing in new clients or strategic partnerships directly impacts the company’s bottom line.

After all, if you are giving them such a high level of responsibility, it is down to you to ensure they have all the tools available to them to perform their role as successfully as possible.

If you provide them with all the tools, and the freedom to do their jobs, without too much in the way of restriction, they will be significantly more motivated to do so.

Engage a travel management company committed to excellence as much as you are

At TruTrip, the best way to meet your national and international growth is through global business travel. If this article has piqued your interest, and you would like to find out more about how our travel software solutions can grow your business, 預訂演示 與我們或 註冊免費試用 on TruTrip