Here is another ground-breaking study recently released that demonstrates the economic value of meetings travel! This study was produced by NBTA and IHS Global Insight, and shows a clear link between travel spending and corporate profits.
The study report, “Can We Afford Not to Invest in Business Travel?,” says that, for 2009, companies are potentially "losing out" on nearly $200 billion in additional gross profits "because they are not optimizing their investments in strategic business travel," according to an NBTA
release that summarizes findings. How did they come up with that number? The study looked at 10 years of data for 15 U.S. industry sectors and analyzed information on business travel, business expenses, revenues and profitability.
Some other gems: while ROI in the study varied across the 15 industries, the average return for every $1 spent on business travel was $15. Another finding: increasing travel expenditures to optimal levels could create 5.1 million new jobs, generating more than $101 billion in tax revenue.
This latest study stands alongside the recently released United States Travel Association study in affirming the economic impact of business and meetings travel (see
post). And, like the USTA study, I'm hoping the clear results quiet unfair and unwise criticism of companies who hold meetings during a recession "as wasteful" or "extravagant."
In the release, NBTA Research Consultant Kenneth McGill is quoted, saying: "Executives know from experience that travel facilitates the types of exchanges that help keep clients, gain new business, and make employees more effective, but making the business case for travel has been challenging without supporting data. Now for the first time the discussions around travel budgets will be informed with research establishing the link between business travel and profits."
Thank you, NBTA and IHS Global Insight, for this enormously important research; I'm amazed at the depth and breadth of the data reviewed and, of course, the dramatic statistics that bolster the case for business meetings. Meetings managers everywhere can use the information to present to senior management on the bottom-line value that their programs add to their companies.
For more information on how to convince CEOs that your company can benefit from a strategic meetings management program, read this StarCite
whitepaper.
Kevin Iwamoto is vice president of enterprise strategy at StarCite. This post is syndicated from his blog, Strategic Meetings Management.