WHAT:
U.S. companies are leaving trillions on the table by underinvesting in business travel, according to new research released by the Global Business Travel Association (GBTA) in partnership with the American Society of Travel Advisors (ASTA). The landmark study reveals that a modest 8.3% increase in corporate travel and entertainment (T&E) spending could drive a 6% jump in sales – resulting in an estimated $2.4 trillion in new revenue.
WHY IT MATTERS:
Despite a strong rebound in recent years, the research shows that inflation-adjusted business travel investment remains $66 billion below pre-pandemic benchmarks. The study, which analyzed 24 years of industry data across 14 major U.S. sectors, found that current T&E spending is about $24 billion short of the profit-maximizing level of $319.1 billion. Companies that close that gap stand to gain an average return of $14.60 in net operating margin for every $1 invested in business travel.
ASTA is also partnering with GBTA to specifically evaluate the bottom-line impact Travel Management Companies (TMCs) have across a range of industries and their effect on corporations’ key financial outcomes like profitability, revenue growth, cost savings and even share price performance when it comes to tightly (vs. moderately and lightly) managed travel. Findings are expected to be completed in the early fall.
QUOTE FROM MARK MEADER, EXECUTIVE VICE PRESIDENT, ASTA CORPORATE:
“The research released by GBTA this week tells a powerful story regarding the value of corporate travel. This initial study confirms what our corporate agency members have long known – business travel is not just an expense, it’s an engine for growth. When companies invest strategically in travel, they’re investing in relationships, revenue and resilience. We hope the next phase of our research with focus on the value of managed travel through the TMC will prove that not only modest increases in T&E yield extraordinary returns, managed travel specifically through a TMC is all the more powerful and financially valuable to the corporation – especially in today’s competitive and evolving business landscape.
This week’s findings are the perfect segway to our ongoing research that will release this fall, showing the value of tightly managed travel and the financial benefits of utilizing Travel Management Companies.”
WHERE TO FIND THE FULL STUDY:
Media should feel free to utilize the provided quote above for attribution to Mark Meader, Executive Vice President, ASTA Corporate. Additionally, Mark is available for interviews to further discuss the research findings. To schedule time for an interview, please contact ASTA’s Director of Communications, Margo Van Ness, at [email protected].
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