When times got tough economically, a lot of businesses were looking for ways to cut costs, limit spending and increase efficiency. There are lots of ways to do this effectively, but it doesn’t simply come down to eliminating or blindly chopping spending in one area. Often, doing so only leads to more financial hardship.
This has never been more true than with the seemingly contentious issue of business travel and meeting spending. Travel budgets were first up on the chopping block for lots of companies, and the results haven’t been pretty. We’ve long been proponents of the importance of face-to-face meetings and the value they bring, and obviously the meetings and events industry has thrived for a long time adhering to the tenets of personal interaction driving productivity. Now, recent studies show not only did companies that spent more on business travel during the recession fare better, but also companies that continue to devote more resources to travel expenses have rebounded faster and better from the economic downturn.
Businesses that continued to send employees on the road during the recession were more profitable than those that cut back on business travel, a new study out today has found.
It’s yet another case of finding value, and history has shown time and again there is a lot of value packed into each minute of face time. It may seem extravagant or expensive to send employees around the world, but it’s merely the cost of doing business. So before you think about cutting out some travel expenses, assess the likely ramifications, and look for other ways to control your budget. Paying to get people fact-to-face in the same room together pays for itself quickly and goes a long way towards achieving your business objectives.