Stop Press – Don’t stop travelling in a recession!!
When times are tight, one of the first things businesses consider are how to cut costs. Travel is one of them. After numerous amounts of research into the question: ‘Should we cut down on our travel in these difficult times?’ This is what they found.
The National Business Travel Association, a trade group in the United States say that up to 85% of most companies have decreased their travel costs but two reports recently written, one by the National Business Travel Association and one by the U.S. Travel Association, have found a clear link that should travel costs stay the same or even increase, so does the corporate profit.
We quote what Adam Sacks says, Managing Director of Oxford Economics (the company that prepared the US Travel Association report), “not all cuts are smart cuts.” Adam Sacks has analysed the last 13 years’ worth of Government data whether continuing to travel in difficult times is a wise investment. People benefit from one-to-one meetings and therefore, whilst cuts must be made, shrewdness is the key. Deals and relations stall if direct relationships falter due to cutbacks in travel. The reports found that cuts can be made in other areas of the business, but travel in difficult economic times, should actually remain static or even increase, as this shows that companies are still interested in winning contracts.
The President of the National Business Travel Association says, “Are my competitors going to gain the edge by optimizing their travel? Answering these questions effectively could mean the difference between surviving and thriving as we climb out of the recession”. Interesting thought!!!!