The majority of CEOs view business travel as essential to both revenue generation and employee morale and plan to increase their travel budgets this year. This insight comes from The Value of Business Travel Report, commissioned by TravelPerk and published June 13. The report surveyed 2,000 corporate decision makers outside of TravelPerk, including 4,600 business travelers, 625 travel managers and administrators, and 540 C-level leaders within TravelPerk's customer base.
According to the report, 62% of CEOs expect their travel budgets to increase year-over-year. US companies are particularly optimistic, with 61% planning to increase their travel spending. In contrast, less than half of European companies plan to increase their budgets: 39% in Germany, 46% in the UK and 48% in Spain.
Key reasons for increased travel budgets:
Expanding into new markets: 47% of companies cite this as the main reason for increasing their travel budget. Meeting and event attendance: Increased attendance at industry events is the main driver. Growing employee numbers: As teams grow, so does travel.
The study highlights the dual value of business travel, pointing out its economic benefits and positive impact on human capital: Business leaders believe that roughly one-third of revenue growth in 2023 will come from in-person meetings. Moreover, 95% of leaders believe that without these face-to-face interactions, their companies would lose roughly 27% of their customer base.
Employee retention and attraction:
US CEOs: 82% believe business travel helps improve employee retention. European CEOs: 65% share this sentiment. HR decision makers: 75% say including the opportunity to travel in the job description makes the role more attractive to applicants. Business travelers: 63% say business travel makes them more likely to stay with their current employer, rising to 76% for Gen Z employees.
According to the report, companies that increased their travel budgets in 2023 had an 8.6% employee turnover rate, below the Gallup average of 10% and significantly lower than companies that cut their travel budgets.
Concerns that could lead to cuts in travel budgets:
For one-third of businesses planning to cut travel budgets, the main concerns are:
Travel costs: cited by 35% of respondents. Company cost-cutting measures: cited by 30% of respondents. Environmental sustainability: 27% of respondents are concerned about the environmental impact of business travel.
The survey for the report was conducted from April 10 to April 17 and offers new insights into the evolving landscape of business travel and its perceived value among corporate leaders. By increasing their business travel budgets, CEOs are not only focusing on short-term financial benefits, but are also investing in a strong company culture that supports long-term growth, innovation, and employee satisfaction and retention.
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