Companies and industry sectors in the U.S. are missing out on significant new revenue opportunities because they are not optimizing their business travel, a new study says.
According to two new reports released on July 11th by the Global Business Travel Association (GBTA)—focusing on quantifying the return on investment (ROI) of corporate travel—U.S. companies could basically be leaving trillions on the table.
The analysis demonstrates that in the U.S., companies could unlock $2.4 trillion USD through a modest 8.3% increase in travel and expense (T&E) spending and yielding a 6% increase in sales. They could gain a net operating margin of $14.60 for every $1 invested in business travel.
The study analyzed 24 years of industry data across 14 major U.S. sectors, finding that current travel and entertainment spending sits $24 billion below the profit-maximizing level of $319 billion, leaving companies with a potential 14.6x return on investment.
“This research confirms that business travel is a powerful lever for growth. It shows even modest increases in spending investment can yield substantial returns. And in times of uncertainty and economic pressures, its value becomes even more critical. Yet, companies are falling short, underinvesting in traveling for work, which is essential for staying competitive in today’s markets,” said Suzanne Neufang, CEO, GBTA, in a media statement.
Despite business travel’s rebound since the pandemic, inflation-adjusted investment remains $66 billion below pre-2020 levels. Companies need to spend just $184 more per employee on average to reach optimal investment levels, it is reported.
GBTA plans to release follow-up research this fall about how travel management companies affect corporate financial performance.
The timing comes as corporate travel managers worldwide assess post-pandemic travel policies. Many companies implemented permanent travel reductions during 2020-2022, but the new data suggests these cuts could be limiting growth potential.
The complete study is available to GBTA members.
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