Companies Cutting Business Travel Seen Putting Bottom Line at Risk

Research from IHS Global Insight shows linkage between spending on business travel and rise or fall in sales; research also examines optimal level of business travel expenditure for 15 industries

New York — September 14, 2009 — Companies hit hard by the recession have been taking a hard look — if not a sharp knife — to travel and entertainment (T&E) spending this year, but reducing business travel spending could wind up hurting the bottom line through reduced sales, according to a new report.

Research conducted by IHS Global Insight and previewed during the National Business Travel Association (NBTA) International Convention & Exposition held recently in San Diego explores the link between changes in business travel and sales and profits. The research, commissioned by NBTA and American Express Business Travel, used data spanning ten years from 1998 to 2008 and across 15 industries and 9,500 U.S. companies.