Now that global business has fairly comfortably settle into a new era of remote work and digital meetings, one might assume that business travel is losing its relevance. However, new research reveals that this couldn’t be further from the truth. In fact, for many businesses—especially small and mid-sized enterprises—business travel remains a critical driver of growth, employee engagement, and company culture.

According to The Value of Business Travel Report from TravelPerk, a leading global business travel management platform, 76% of CEOs believe that increasing travel budgets would positively impact their company’s revenue. This comes at a time when nearly half of the 2,000 companies surveyed expect their travel budgets to increase despite ongoing economic challenges.

The report, which draws from research across the UK, US, Germany, and Spain, found that the primary reasons for expanding travel budgets include entering new markets (47%), attending more conferences and events (45%), and supporting business growth by hiring new talent (39%).

In-Person Meetings: A Vital Growth Strategy

One of the report’s key findings is the importance of face-to-face interaction, particularly when it comes to driving revenue. For employees involved in sales, the data is striking: 30% of sales revenue driven by travel would be lost without in-person meetings with clients and prospects. For small and mid-sized businesses (SMBs), every US dollar spent on business travel generates $12 in incremental revenue, largely thanks to new customer acquisition.

“In today’s fiercely competitive landscape, companies recognize the immense value that business travel delivers,” said Avi Meir, CEO and co-founder of TravelPerk. “From the boost in employee engagement and revenue generated from in-person meetings, to conducting work that can only happen by being there, business travel is far more than just a cost center—it’s an investment in growth, innovation, and company culture.”

Beyond Business: Travel as a Tool for Employee Engagement

Traveling for work isn’t just about closing deals. It’s also a powerful tool for professional development and employee satisfaction. 61% of employees said business travel improves their networking abilities, and 64% noted it increases their visibility within the company. This helps not only in terms of career growth but also in keeping employees motivated.

Perhaps more compellingly, 85% of employees stated that in-person social events boost morale and engagement. These connections, formed outside the confines of Zoom calls, are crucial for developing soft skills and nurturing team cohesion.

Lenke Taylor, Chief People Officer at Personio, elaborated: “As someone who’s seen it firsthand, I can say that travel and meeting face-to-face are game-changers for building connection and engagement. Recognizing travel not as a corporate necessity or purely a cost line, but as a strategic opportunity for collaboration and alignment, allows organizations to unlock the full potential of an international talent pool and cultivate a truly connected community.”

The Role of AI in the Future of Travel

Interestingly, despite the rise of AI and automation, the report highlights that technology will only strengthen the need for business travel. 38% of CEOs surveyed believe that AI will actually increase the necessity for in-person meetings. While automation may handle routine tasks, human interaction remains irreplaceable for fostering deep connections and trust.

Mette Gade, Chief Product Officer at Pleo, also emphasized the growing role of technology in business travel: “Through AI and automation, businesses can effectively manage expenses by optimizing spending, detecting anomalies, contextualizing data in real time, and forecasting expenditure. By leveraging the right technology stack, tasks become not just manageable, but enjoyable.”

What’s Next for Business Travel?

As the world slowly emerges from the pandemic, inflation, and other constraints over the last several years, business travel is clearly making a comeback, and it’s doing so with purpose. Companies are realizing that face-to-face meetings are essential for growth, from securing new clients to developing employees and maintaining company culture.

The investment in business travel is set to increase, with more companies seeing it not as an expendable cost, but as a strategic tool for long-term success. With advancements in AI and technology complementing, rather than replacing, human connection, business travel will continue to be a cornerstone of how companies operate in a globalized world.

For businesses aiming to stay competitive, the message from the data is clear: invest in travel, and the returns will follow.