Business Travel: A Sound Investment
U.S. businesses spent more than $200 billion on business-related travel in 2008. In a new study, Oxford Economics USA illustrates how much companies stand to gain when workers travel for meetings, conventions, training or as an incentive for performance. The Return on Investment of U.S. Business Travel study found that for every dollar spent on business travel, companies realize $12.50 in incremental value and $3.80 in profits.
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Value of Meetings
When business meetings and events are cancelled, it’s the hourly-wage workers – not corporate CEOs – who pay the highest price. Meetings, events and performance incentive travel in the United States are responsible for almost 15% of all domestic travel. Generating 1 million jobs and $27 billion in wages, meetings and events can provide a solution to our economic woes. Meetings and events support local communities and working families around the country – something we cannot afford to overlook as we rebuild our economy.
Click here to find out what share of your state’s travel economy depends on meetings and events.
Click here to read what others are saying about the value of meetings and events.
Business Growth
Meetings and events are valuable tools for U.S. businesses. Meetings and events drive business growth by fostering collaboration, idea-sharing and generation, and employee retention. Incentive programs have been shown to be two to three times more effective than cash at motivating employee performance. In a recent survey, Fortune 1000 Chief Marketing Officers said that meetings and events provide the highest return on investment of any marketing channel. A new study shows that 87 percent of Americans who have attended an out-of-town meeting or convention for work say it is important to running a strong business.
The Facts
- Business travel creates 2.4 million jobs nationally. Meetings and events are directly responsible for 1 million jobs.
- The U.S. Travel Association estimates that 200,000 travel jobs were lost in 2008 and expects another 247,000 to be lost in 2009
- Business travel accounts for $39 billion in tax revenue at the federal, state, and local levels.
- Meetings and events are responsible for 15% of all travel-related spending.
- Business travel supports more than 200 hotel and convention centers across the country.
- According to the results of a Meetings and Conventions magazine study, 52 percent of respondents claim that the backlash against meetings has been extremely or moderately influential on their company’s decisions to hold events.
- In a recent survey, 87 percent of Americans say that encouraging people to travel recreationally within the U.S. could improve the country's economic landscape.
- Each meeting and event traveler spends an average of $1,000 per trip.
- According to a recent survey of Fortune 1,000 Chief Marketing Officers, meetings and events provide the highest return on investment of any marketing channel.
Learn the facts about the impact of business travel and events.
Employee Development
Good managers encourage the professional growth of employees, and employers must make sound investments in key staff in order to retain top talent and secure the bottom line. Far from being a perk reserved for executives, meeting and performance incentive travel provides valuable development and networking opportunities for employees at all levels.
- Non-cash incentives are 2 to 3 times more effective at motivating employee performance, and companies spend less on incentive travel than on cash compensation to achieve exceptional productivity from employees.
- Meetings and events are strategic tools that deepen employee relationships and contribute to the overall health of companies. A 5% increase in employee retention can generate a 25 to 85% increase in profitability.
- Companies with satisfied employees generate better overall returns in the stock market, with firms on the list of “100 Best Companies to Work For” generating up to five times as much return as their competitors.