Traveling for Work is Essential to America’s Recovery
Even before the COVID-19 pandemic, some viewed business travel as an unnecessary luxury. In the age of the Zoom meeting, it may seem like a counter-intuitive way to interact with people in different places or even a waste of resources.
But business travel is essential to the way we do business. It's also an important part of America's economic recovery. Here's a look at why we travel for work, and why it will always be a part of the business world.
Why Do We Travel for Work?
There are a few reasons why business travel is so important. The first is that it's essential for building relationships. In-person meetings are key to getting to know someone and establishing trust. They're also crucial for closing deals, especially when those deals involve millions—even billions—of dollars and complicated legal frameworks.
Second, business travel allows people to collaborate and get things done faster. With technology, we can communicate with people all over the world instantaneously, but some tasks still need to be handled in person. For example, negotiating a contract or reviewing financials with a group of people can certainly be accomplished digitally, but it's much more difficult to do when everyone isn't in the same room.
Finally, business travel helps individuals experience different cultures and gain new perspectives on both their personal and working lives. By being in different places and seeing how other people live, we can learn new ideas. We can also find inspiration.
The Benefits of Business Travel for Companies
There are also some key benefits to business travel for companies, some of which affect the bottom line.
Business travel can lead to new opportunities and partnerships. For example, an employee who travels for work may meet someone important while on the road and develop a business relationship with them. They may stumble upon an innovative idea while visiting a conference, befriend colleagues in other countries who have innovative ideas or even develop a rapport with a potential new supplier.
Business travel is also great for team building. When people are together in a foreign country or even in another part of the United States, they have to rely on each other to get things done. This type of environment can lead to better communication and teamwork.
Building relationships is still key to doing business, and there's no substitute for business travel.
The Benefits of Business Travel for the Economy
The economic benefits of business travel are easy to identify.
When employees travel for work, it often means they're spending money on hotels, airfare, and food. That can add up quickly, and companies can save money by encouraging their employees to book business-class flights and stay in business-class hotels.
Business travel also has a ripple effect on the local economy. For example, if an employee visits a restaurant while on a business trip, they're likely to spend more money there than if they were eating at home. And that's not even counting tips.
Business travel is also great for creating jobs. In addition to the people who are directly employed by the business travel industry, many indirect jobs are created as a result of business travel. These include everything from hotel workers to taxi drivers to tour guides.
In 2019, worldwide business travel spending peaked at $1.29 trillion. In the U.S., business travel spending amounted to 357.9 billion in 2019.
The Resurgence of Business Travel
In short, business travel is essential to America's economic recovery and always will be. Despite the availability of technology that allows us to work from anywhere, business travel is still very important for building relationships, getting things done faster, and gaining new insights.
Companies should encourage their employees to take advantage of business travel opportunities whenever possible, but they must also take steps to safeguard their employees. The procurement department can help by administering safety guidelines, adopting streamlined technologies, gathering intelligence, and engaging in strategic booking practices.
Learn more about the future of business travel at the next ProcureCon Travel conference, June 13 - 14 at the Omni Rancho Las Palmas, in Rancho Mirage, CA. Download the agenda today.