Defending business travel in a recession

— -- I loathe meetings. That's one reason I left the corporate world to work independently, but I know meetings are essential to facilitating commerce. Businesses must travel and hold meetings even in a recession (or perhaps especially in a recession) in order to survive and thrive. It's unfortunate that business travel and meetings have been the targets of sharp condemnation in the current economic downturn.

"Travel is the lifeblood of most companies," says Kevin Mitchell, chairman of the Business Travel Coalition. Mitchell is disturbed by the "reckless behavior" of some in Congress who have chastised business meetings "across the board in a very dramatic fashion" because a few companies abused their Troubled Asset Relief Program (TARP) funds.

"At a time when we are totally focused on creating jobs it is irresponsible rhetoric," says Mitchell, who feels this unwarranted attack is causing job losses in hotels, restaurants and many other industries dependent on business travelers.

The groundswell of criticism has put business travel on the defensive in many companies at a time when everyone is cutting expenses. It's not just the large companies we hear about that are cutting back. Small companies, which account for 70% of air travel spending in the U.S., are more likely to cut travel in an economic downturn because they often lack the capital reserves of large companies. Jean Covelli of The Travel Team, Inc., a travel management company based in Buffalo, argues that companies should view business travel as an investment in the future rather than a cost.

While there is clearly a tendency for companies to cut travel budgets in tough economic times, short-term savings in travel could have long-term detrimental effects. Rick Wakida, a global travel manager based in the San Francisco area, says many companies tend to cut travel "X%" in every department across the board because it is easier to administer. "A better approach would be to allow or limit travel based on trip purpose," according to Wakida.