The business world is much different today from what it used to be. The pandemic transformed how people work. Today, many offices go hybrid or pick a remote-first work model. We are more reliant on technology than ever. In the business place, people use it to communicate with everyone, including teams located far, far away. If this is the case, it makes you wonder – why invest in business travel programs?
Even though technology facilitates communication, one lesson is still very clear. Communication is made simpler with the endless choice of video channels, meeting tools, and emails. But nothing beats doing business face-to-face.
From trade shows to important client meetings or industry events, business travel comes in many forms today. In 2021, it accounted for 20% of the global travel expenditure. The numbers keep growing, telling us what we already know – that corporate travel is vital to doing business.
Aside from being a way to communicate with clients and prospects, travel also has a great return on investment. On average, for every dollar spent on arranging business travel, the ROI is $12.50.
What does this return encompass?
If you invest in business travel programs, those in-person meetings can bring you new customers, create relationships with clients, and further train and motivate your employees. And that’s just a small piece of the puzzle.
In this article, we’ll discuss the reasons for investing in a good travel program for your business, as well as how you can do it properly.
How to make the most of your business travel spending
Before we jump at why you should invest in corporate travel programs, let’s discuss the main concern of most businesses – how to make this the most profitable. As you probably know, organizing business travel is a time-consuming, expensive process. From making bookings to managing the annual travel budgets, this can easily go wrong and cost your company more than it should.
The answer to this lies in a corporate accommodation solution. We are talking about a tool that can simplify the entire process and maximize the company’s profits by minimizing risks and investments.
Basically, you’d be spending less time searching for accommodation or organizing business trips. Altovita can handle it for you. With a database of high-quality accommodation options, the tool will ensure that your employees have a pleasant trip without problems and without exceeding the dedicated budget.
Rather than scrolling through endless sites, corporate travelers can do it all from a single place within minutes, using the best rates in the industry.
Only with a good business travel program can you reap the benefits below.
The benefits of corporate travel for a business
Here comes the key question in our article – why should you invest in a business travel program? We present you with the top reasons for it:
- Attract more talent to your business
- Connect with prospects and secure new clients
- Maintain relationships with existing clients
- Optimize your team’s performance
- Get networking opportunities
On top of these, business travel has global implications today.
Let’s delve deeper into these.
Attract more talent
One of the ways you’ll get a return on your investment is by attracting the best talent in your company. Times are changing. Today, one of the best employee benefits you can offer to potential employees is travel. People love to have this as an option. It’s a way for them to travel the world while working and earning money.
One survey shows that 30% of business travelers would gladly take a pay cut if it meant that they could travel more for work. Imagine that – these people prioritize travel over most other benefits in their work package.
If you want to hire the top talent in your company, a business travel program is a great addition to your benefits package. The promise of a trip can boost an employee’s morale, not to mention relieve their stress and expose them to new places and cultures.
And it’s not just about attracting top talent to your company. It’s also about retaining the one you have. High employee turnover can cost a fortune, and a good travel program can help you keep your team motivated and happy, therefore reducing these expenses.
Connect with prospects/ secure new clients
When it comes to landing new clients, connect with prospects because nothing can compare with a face-to-face meeting. Actually getting to meet the person, communicating with them, and building a relationship can be just what it takes to convert them into an important client for the business.
Reports show that roughly 40% of prospective customers of a business convert after a face-to-face meeting. This is compared to only 16% without face-to-face interaction.
What does this show us?
It shows that while technology can help us communicate much better today, it cannot replace in-person meetings. Zoom sessions can be useful, but actually seeing the potential client is often vital to a business’s success.
Maintain relationships with existing clients
Virtual meetings and online calls are irreplaceable these days. It’s how we stay in touch with people that are not near us, how we communicate and essentially share important information. However, to build strong relationships, in-person communication is of the highest importance.
In-person interactions can form stronger relationships than any form of online meeting. If you want to reduce churn rate, boost the loyalty among your existing client base, and maximize your earnings, this is the way to do it.
An email or phone call can be enough for a courtesy check-in or a question that requires a fast response. But doing this all the time simply won’t cut it.
Optimize team performance
Business travel programs aren’t cheap, but they are a great way to motivate your employees and strengthen teamwork. This is especially important in companies with offices scattered around the country – or the globe, for that matter. You can’t expect people to build professional relationships solely by communicating online, can you?
Whenever possible, try to offer your employees the option to travel for gatherings and internal meetings. Some matters are best discussed in person, and regular meetings can strengthen your company’s culture. In turn, you can achieve the business growth goals faster and maximize your profits.
Networking opportunities
Business travel can also enable relationship building and collaboration in a wider context. For instance, when your team members attend trade shows and conferences, they can remain updated with recent trends and developments. This is another perk alongside meeting with potential clients.
Traveling means meeting new people. With a good business travel program, you are ensuring that your company’s employees can meet new clients, vendors, and other people to strengthen their professional network – as well as your company’s.
Let’s say that you skip key industry events because corporate travel costs a lot. This can be devastating for your company’s future. Unlike you, competitors will send people to said events, and they’ll network and find amazing opportunities that will help them beat you as a competitor.
Business travel has global implications
As we mentioned, on top of all these benefits for your business, the impact of corporate travel has global implications. There’s a positive correlation between a country’s GDP and the number of business travelers. By investing in business travel, you are helping the economic recovery.
The 2020 Harvard University study that explored this topic found that travel has significant effects on different countries. It’s not just beneficial for your individual business – it’s important on a more global level, too.
Business travelers contribute greatly to tourism around the world. As we mentioned, this accounts for 20% of the total travel expenditure, and the numbers are expected to grow in the following years. Despite the availability and popularity of technology like Skype and Zoom, business travel spending is on the rise – and it helps the world in the process.
Do you have a business travel program in place?
Investing in a business travel program can maximize returns in today’s evolving business landscape. Truth be told, technology has transformed how we communicate, and the business world has become more reliant on it since the pandemic. However, it doesn’t go close to replacing in-person business meetings, not to mention travel for learning and development purposes.
Business travel comes with numerous benefits, and the right travel program can bring you a remarkable return on investment. So, if you haven’t invested in such a program yet, the time to start considering it — and working on it is today.
