Skip to content

Search

Latest Stories

Report: Business travel gaps cost U.S. firms $2.4T

It said that U.S. business travel yields $14.60 in return for every $1 spent

U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

U.S. companies are missing more than $2.4 trillion in potential sales due to underinvestment in business travel, with spending still $66 billion below 2019 levels, according to a Global Business Travel Association report.

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.


The report, “T&E and the Bottom-Line: Quantifying the Return on Investment of U.S. Business Travel,” released by GBTA and the American Society of Travel Advisors, found that an 8.3 percent increase in T&E could yield a 6 percent increase in sales, even accounting for post-COVID investments in virtual meeting platforms.

“This research confirms that business travel is not an arbitrary cost center—it’s a lever for growth,” said Suzanne Neufang, CEO of GBTA. “In times of uncertainty and economic pressure, its value becomes even more important. Yet U.S. companies are falling short, underinvesting in travel for work, which is essential to remain competitive in today’s changing markets.”

U.S. business travel yields a 14.6x return—$14.60 in net operating margin for every $1 spent, the report said. Current T&E investment is $294 billion, about $24 billion below the $319.1 billion needed to maximize profitability.

“While acknowledging the role of virtual meetings, our analysis shows that companies that invest effectively in purpose-driven business travel can see significant gains in sales, revenue, and profitability,” Neufang said.

Based on data from 2000 to 2024 across 14 U.S. industries, the GBTA ROI study finds the gap between current and optimal T&E investment has widened. In 2010, firms needed a 2.2 percent increase to reach optimal levels; that figure is now 8.3 percent. The study also finds that virtual meeting technologies have not closed the gap, even in recent years.

The report identifies sales opportunities in retail and wholesale at $179 billion, financial services at $145 billion, and health and education at $87 billion, all tied to below-optimal travel spending. In sectors like real estate and information and communication, where travel is core to operations, the per-employee gap is larger, indicating potential for strong returns from targeted increases.

On average, $184 more per employee annually could close the gap, with increases ranging from $34 in health services to $920 in real estate. Business travel spending has grown 1.5 percent annually since 2000, with faster growth post-pandemic, while its share of total sales fell from 1.28 percent to 0.72 percent—indicating greater efficiency per travel dollar.

The study notes that companies maintaining higher travel levels during downturns, such as the 2008–2010 recession and the COVID-19 pandemic, recovered faster and outperformed peers. Further cuts to business travel could reduce economic output and weaken corporate earnings.

GBTA plans to release follow-up reports with insights by corporation and industry, and on the impact of managed travel and travel management companies.

In June, more than 100 GBTA members and constituents met in Washington, D.C., for the 2025 U.S. Legislative Summit to advocate for business travel.


More for you

Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less
Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
  • The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
  • The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.

STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.

Keep ReadingShow less
GSA keeps FY 2026 federal per diem lodging and meal rates flat

Federal per diem rates stay flat for FY 2026

Summary:

  • GSA will keep federal per diem rates the same for FY 2026.
  • The lodging rate stays $110 and meals allowance $68.
  • AHLA raised concerns over the impact on government travel.

THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.

Keep ReadingShow less