Travel expenses are costs associated with traveling for the purpose of conducting business-related activities.
Expenses for business travel have been rising continuously for years and all estimates say it will grow further. Thus, even in the digital age, the focus is not on reducing travel, but on optimizing it.
A majority (90%) of business travelers believe travel is essential to driving growth for their companies, and 91% prefer to close a deal in person, even if it requires air travel.
You can call, email, and even watch your business counterparty on FaceTime, Skype, or GoToMeeting. So why do companies fork out more than $1.2 trillion a year – a full 1.5% of the world’s GDP – for international business travel?
Should Business Travel Be Obsolete This Days?
While business people travel in order to trade or invest, more than half of international business travel seems to be related to the management of foreign subsidiaries. The global economy is increasingly characterized by global firms, which need to deploy their know-how to their different locations around the world. The data show that there is almost twice the amount of travel from headquarters to subsidiaries as there is in the opposite direction. Exporters also travel twice as much as importers.