CEOs Prioritize Business Travel for Revenue Growth and Employee Morale

A significant majority of CEOs are planning to increase their travel budgets this year, viewing business travel as essential for both revenue generation and employee morale. This insight comes from the Value of Business Travel Report, commissioned by TravelPerk and published on June 13. The report surveyed 4,600 business travelers, 625 travel managers and administrators within TravelPerk’s customer base, and 2,000 company decision-makers outside of it, including 540 C-suite leaders.

According to the report, 62% of CEOs anticipate a year-over-year increase in their travel budgets. U.S. companies are particularly optimistic, with 61% planning to boost their travel expenditures. In contrast, less than half of European companies expect to increase their budgets, including only 39% in Germany, 46% in the U.K., and 48% in Spain.

Top Reasons for Increased Travel Budgets:

• • Expansion into New Markets: 47% of companies cited this as their primary reason for increasing travel budgets.
  • Conference and Event Attendance: Increased participation in industry events is a key driver.
  • Larger Headcount: Growing teams necessitate more business travel.

The survey highlights the dual value of business travel, noting its financial returns and its positive impact on human capital. Business leaders attributed approximately one-third of their 2023 sales growth to in-person meetings. Additionally, 95% of leaders believe their companies would lose about 27% of their customer base without these face-to-face interactions.

Employee Retention and Attraction:

• • U.S. CEOs: 82% believe business travel aids in employee retention.
  • European CEOs: 65% share this belief.
  • HR Decision-Makers: 75% state that including business travel opportunities in job descriptions makes roles more attractive to applicants.
  • Business Travelers: 63% say work travel makes them more likely to stay with their current employer, increasing to 76% among Generation Z employees.

The report indicates that companies increasing their travel budgets in 2023 had an employee turnover rate of 8.6%, below the Gallup average of 10%, and significantly lower than companies that cut their travel budgets.

Concerns Leading to Reduced Travel Budgets:

For the one-third of companies planning to cut travel budgets, the primary concerns are:

• • Travel Costs: Cited by 35% of respondents.
  • Company Cost-Cutting Measures: 30% of respondents mentioned this reason.
  • Environmental Sustainability: 27% of respondents are concerned about the environmental impact of travel.

The surveys for the report were conducted between April 10 and April 17, providing fresh insights into the evolving landscape of business travel and its perceived value among corporate leaders. By increasing travel budgets, CEOs are not just focusing on immediate financial returns but are also investing in long-term growth, innovation, and a robust company culture that supports employee satisfaction and retention.

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