Corporate travel was worth more than £27 billion to the UK economy last year, according to a study by the Confederation of British Industry (CBI Economics) on behalf of the Business Travel Association (BTA).
The joint CBI-BTA report, ‘Understanding the benefits of business travel and in-person meetings’, was released today to mark the BTA’s spring conference in London.
It estimates the corporate travel sector’s value, or gross value added (GVA), exceeded £27.5 billion in 2022 and the sector accounted for more than 283,000 full-time jobs. GVA is a measure of all goods and services in an industry, sector or region.
A survey for the report among 475 business leaders found a preference for face-to-face meetings among eight out of 10, with one in two highlighting face-face meetings as the number-one factor in winning new business.
BTA chief executive Clive Wratten said: “Our report unequivocally shows business travel is so much more than suited executives turning left on a plane. It impacts the entire business network across the UK and worldwide.”
The survey found 50% of international business trips were for meetings with existing or potential clients, with the report suggesting in-person contact promotes increased trust and stronger working relationships.
However, the report also notes the number of journeys remains below 2019 levels, and seven out of 10 businesses cited virtual meetings as the main reason for limiting travel, followed by cost concerns (60%) and growing concern for the environment (29%).
Wratten argued: “We cannot let the hybrid legacy of remote meetings check economic growth. It’s crucial we focus our efforts on promoting and protecting public transport networks to keep Britain moving sustainably.
“Business leaders need to stop and think which is more likely to help their organisation grow and prosper – a constrained Teams or Zoom call or the ability to meet in person.”
In a forward to the report, CBI Economics director Mohammad Jamei notes: “While advances in videoconferencing provide businesses with flexibility to communicate easily with individuals, they do not replace the value generated from in-person meetings and business travel.”
Of the £27.5 billion GVA total, £10.4 billion was due to spending through travel management companies (TMCs).
The report notes: “While businesses agreed virtual meetings are a viable substitute, they do not replace the need for in-person meetings.
“The key preference of being face-to-face was found to be for meeting types where communication, employee well-being and developing relationships were involved. Virtual meetings were not considered a substitute for these, or where a physical task is required.”