What's Happening?
A recent study conducted by the Global Business Travel Association (GBTA) and the American Society of Travel Advisors (ASTA) has revealed that U.S. companies with well-managed business travel programs can achieve up to 30% higher revenue compared to their peers. The research analyzed over 3,200 U.S. firms across 17 industries, highlighting the significant impact of strategic travel management on company performance. The study, titled 'Quantifying the Return on Investment of U.S. Business Travel: Company Benchmarking Analysis,' provides insights into the return on investment (ROI) of business travel, aiming to equip organizations with actionable data to optimize travel spending and improve business outcomes. Key findings indicate that for every
1% increase in managed travel spending, there is a 0.20% increase in revenue. Companies that balance strategic travel policy controls with flexibility can outperform those that do not by up to 30%.
Why It's Important?
The findings of this study underscore the strategic value of business travel and its impact on company performance. By adopting disciplined, data-driven travel management practices, companies can significantly enhance their revenue potential. This is particularly important for growth-oriented firms that seek to capture new opportunities and outperform their peers. The study highlights the importance of effective travel policy creation and management as a strategic driver of business performance. Overly rigid enforcement can limit returns, underscoring the need for balanced compliance frameworks that maintain both control and flexibility. The benchmarking model provided by the study enables organizations to compare their travel investments with industry peers, allowing them to identify opportunities for efficiency gains or strategic investment.
What's Next?
Companies are likely to reassess their travel management strategies in light of these findings, potentially leading to increased investment in travel programs that are both disciplined and flexible. Business leaders may focus on leveraging data-driven benchmarks to maximize the value of every travel dollar. This could involve adjusting travel policies to better align with industry standards and optimizing travel spending to improve business outcomes. As firms seek to enhance their competitive edge, strategic travel management may become a more prominent aspect of corporate strategy, influencing decisions related to staffing, resource allocation, and market expansion.
