By Shannon Garcia, ALTOUR SVP, Global Sales
Read time: 3 minutes
It’s time to rethink how we define return on investment in corporate travel.
For too long, business travel has been viewed through a narrow lens: a cost centre to be managed, trimmed, or frozen when economic conditions tighten. But new research from the Global Business Travel Association (GBTA) confirms what many in the industry have long argued, that business travel is not a discretionary spend. It’s a strategic lever for growth.
The Strategic Value of Business Travel
GBTA’s analysis, demonstrates a clear link between corporate travel and company performance. By examining data from 2000 to 2024 across 14 major U.S. industries, the study shows that business travel directly influences revenue growth through activities like sales meetings, client engagement, and team collaboration. For instance, the report finds that an 8.3% increase in travel and expense (T&E) spending could lead to a 6% boost in real sales, potentially adding $2.4 trillion in net sales across U.S. industries.
This isn’t just about spending more, it’s about spending smarter. The report identifies an “optimal” level of T&E investment where returns are maximized before diminishing. For example, industries like Professional Services and Real Estate, which rely heavily on in-person interactions, see the highest travel intensity, spending up to 0.9% of their revenue on business travel. Conversely, sectors like Retail/Wholesale and Banking show significant gaps between current and optimal T&E levels, suggesting untapped potential for growth.
A Per-Employee Perspective
One of the report’s most actionable insights is its per-employee lens. On average, an additional $184 per employee in T&E spending could push firms toward their profit-maximizing point. This figure varies by sector, Real Estate requires $920 per employee, while Health Services and Education need just $34. These modest adjustments highlight how small, strategic increases in corporate travel budgets can deliver outsized returns.
For example, the Manufacturing sector could see a $339 billion increase in net sales with a 7.1% rise in T&E, while the Communications industry could gain $147 billion with a 6.6% increase. These figures underscore that business travel isn’t just a line item, it’s a catalyst for building stronger client relationships, encouraging innovation, and driving competitive advantage.
Navigating Post-Pandemic Shifts
The corporate travel landscape has evolved significantly since the COVID-19 pandemic. The rise of virtual collaboration tools like Zoom and Microsoft Teams has reshaped how businesses operate, with video conferencing revenue growing at a 23% CAGR since 2005. While these tools are here to stay, the GBTA report emphasizes that they complement, rather than replace, in-person engagement. Face-to-face interactions remain critical for high-stakes sales, team cohesion, and long-term relationship building.
Moreover, sustainability is reshaping business travel strategies. The report notes that 86% of North American companies now prioritize environmental, social, and governance (ESG) factors in their travel decisions. Firms are balancing the need for in-person engagement with carbon-conscious choices, such as virtual meetings for low-priority engagements or investing in carbon offsets. This shift allows companies to align corporate travel with broader ESG goals without sacrificing growth potential.
Overcoming Underinvestment
Despite its proven value, business travel often faces cuts during economic uncertainty, as seen during the Great Recession and the COVID-19 recovery. The GBTA report highlights a widening gap between actual and optimal T&E spending, with 8.3% in 2024 compared to just 2.2% in 2010. Could this underinvestment be representing a missed opportunity? Firms that maintain or increase corporate travel during uncertain times tend to recover faster and outperform competitors, as travel strengthens sales pipelines and customer engagement.
Why Partner with ALTOUR for Business Travel?
At ALTOUR, we understand that business travel is more than logistics, it’s a strategic investment. Our tailored corporate travel solutions help businesses optimize their T&E spending. No matter what sector you are in, we design travel programs that maximize ROI, while incorporating sustainability and enhancing the employee experience. From seamless AI powered booking tools to data-driven insights, ALTOUR empowers your team to travel smarter, driving growth and long-term success.
Looking Ahead
The report challenges businesses to rethink business travel as a growth engine rather than a cost center. By strategically increasing T&E investments, companies can unlock significant revenue potential, strengthen client relationships, and stay ahead in a competitive market. As the corporate world navigates post-pandemic shifts and sustainability imperatives, partnering with a trusted corporate travel management provider like ALTOUR ensures your travel program is both effective and future-ready.
Ready to transform your business travel strategy? Contact ALTOUR today to learn how we can help you achieve optimal ROI and drive growth through smarter travel.
