If you think you’re doing your company a favor by taking fewer business trips, you might want to think again. Evidence is emerging that you could actually be doing it harm.
U.S. companies could miss out on nearly $200 billion in profits this year because they have cut back on business travel too much, according to a recent study by IHS Global Insight.
Another study by Oxford Economics found that companies bring in about $12.50 in revenue and $3.80 in profit for every $1 spent on business travel. The research firm said that if a business cut out all travel, it would forfeit 17 percent of its profits in the first year, and those profits would likely not return for three years after business travel resumes.
I’ve always had the feeling that traveling and meeting face to face was crucial to my business, but this is the first time I’ve ever had that feeling quantified.
Here’s an example of how this study applies to my own business travel…see if you can apply it to yours.Details