Understanding the impact of business travel begins with big numbers according to the traveleffect.com. In 2012, domestic business travel spending by U.S. companies supported 3.7 million jobs, drove an estimated $524 billion in business sales — more than half of which was direct revenue — and generated $34.5 billion in taxes and $59 billion in personal income.

That aggregate data becomes even more meaningful when zoomed in on dollar for dollar, as Oxford Economics has done in a new study looking at the impact of business travel on company and industry performance.

Researchers found that every dollar invested in business travel yielded $9.50 in revenue. Adjusting for higher operational costs and real wage growth, that $9.50 translates into $2.90 profit per dollar spent — nearly triple return on investment.

Business travel is a vital aspect of the U.S. economy. Its impact ripples through individual companies and the broader economy in two ways: 1) The business activity directly generated by travel, and 2) the improvements in company performance and productivity gained by business travel.

During business travel corporations spend in more varied ways, supporting a host of sectors including air transport, car rentals, train transport, taxis, hotels, restaurants and meeting planning. At the same time, the productivity gains a company may experience include new sales, customer retention, collaboration, employee satisfaction, networking, industry knowledge and idea sharing.

Business travel plays a critical role in maintaining strong customer relationships. Nearly three-in-four (74%) frequent business travelers surveyed reported that in-person meetings with clients deliver a high impact on customer retention, while 42 percent of executives stating that they would lose their customers without face-to-face meetings.

In-person meetings also have dramatic effects on prospective clients – business travelers reported that they are nearly twice as likely to convert prospects into customers with an in-person meeting.

 

Business Travel is Booming

Business travel is a vital aspect of the U.S. economy. Its impact ripples through individual companies and the broader economy in two ways: 1) The business activity directly generated by travel, and 2) the improvements in company performance and productivity gained by business travel.

During business travel corporations spend in more varied ways, supporting a host of sectors including air transport, car rentals, train transport, taxis, hotels, restaurants and meeting planning. At the same time, the productivity gains a company may experience include new sales, customer retention, collaboration, employee satisfaction, networking, industry knowledge and idea sharing.

Business Travel Means New Customers

Business travel plays a critical role in maintaining strong customer relationships. Nearly three-in-four (74%) frequent business travelers surveyed reported that in-person meetings with clients deliver a high impact on customer retention, while 42 percent of executives stating that they would lose their customers without face-to-face meetings.

In-person meetings also have dramatic effects on prospective clients – business travelers reported that they are nearly twice as likely to convert prospects into customers with an in-person meeting.

Business Travel Means Higher Revenues

Business travel fuels growth and boosts the bottom-line. For every dollar U.S. companies invest in business travel they realize $9.50 in new revenue and receive $2.90 in profits. Not only do dollars spent on business travel yield a three-time ROI, sectors that spent more on business travel throughout recession and recovery enjoyed higher cumulative profit growth.

Business Travel Means Jobs

Business Travel not only strengthens our economy, but puts Americans back to work and supports communities across the country. In 2012 alone, domestic business travel spending supported 3.68 million jobs, directly sustaining 1.9 million, and generated $524 billion in total economic impact. Much of that economic impact stems from revenue that business travel drives to local state and federal taxes, which collectively totaled $34.5 billion in 2012.