ROI FROM THE ROAD

As business travel resets, maximizing value of each trip is a bigger question than go-or-no-go

- MARK ROWH

After more months than we care to count, things seem to be looking up for business travel. But with the impact of COVID-19 likely to continue for some time, the economics of travel face scrutiny like never before. In fact, the time may be ideal for entrepreneurs and business owner-leaders to assess the real return on their investment in travel.

While the pandemic has been a game-changer, efforts to calculate the ROI of business are nothing new. As far back as 2009, research and consulting organization Oxford Economics estimated that for each dollar invested in business travel, companies realize $12.50 in incremental revenue. Conversely, a business that eliminated business travel could anticipate a 17 percent loss of profits in the first year while expecting to take a full three years for profits to recover.

Fast forward to the 2020s, and making such a calculation has become more challenging. Along with the other complexities of modern business, new ways to interact have emerged that can offer viable options to traditional travel.

“Stakes are higher than ever for companies to maximize the ROI for every business trip or relocation,” Steve Black, CSO at Topia, a company specializing in global talent mobility. “Instead of an employee flying fifteen hours for a short meeting with a client or customer, companies will demand more ROI and a stronger business case.” At the same time, travelers may need to plan for longer business trips, schedule more meetings and pack more value in a given trip to justify the expense and the potential risk of traveling.