By Theresa Witham
CUES Director Development Seminar just took place last week in Charleston, S.C. (Read coverage here and here.) With 92 attendees the event certainly surpassed our expectations for an economic year like the current one. In fact, even more credit union directors attended than last year.
We are certainly happy about that here at CUES. Conference and seminar attendance helps keep us running and it affords an opportunity for us to speak with credit union folks to find out their hot issues.
We believe (because our members tell us!) that our meetings provide outstanding education and networking. We often hear from attendees who are excited to get home and work on a new idea they picked up at the meeting, or that they have struck long-lasting business deals with other attendees.
So when I read about a couple of new surveys dealing with business travel and profits, I was not all that surprised at the findings.
Research by IHS Global Insight, an economic forecasting and consulting firm, on behalf of the National Business Travel Association and American Express Business Travel, concluded that businesses can realize more than $15 in profits for every $1 spent on business travel.
Another study, performed by Oxford Economics for the U.S. Travel Association (whose site "Meetings Mean Business" defends the importance and relevance of business travel) had similar findings:
"The average business in the United States would forfeit 17 percent of its profits in the first year of eliminating business travel. It would take more than three years for profits to recover."
The study also documented how important business travel is to the U.S. economy:
"Business travel in the U.S. is responsible for $246 billion in spending and 2.3 million American jobs; $100 billion of this spending and 1 million American jobs are linked directly to meetings and events. In the first six months of 2009, business travel spending is down by 12.5 percent and business travel volume is down more than 6 percent. A 10 percent increase in business travel spending would increase multi-factor productivity, leading to a U.S. GDP increase between 1.5 percent and 2.8 percent.
"In tough economic times, many business executives have an understandable short-run focus on managing costs. The report points out the less visible--but significant-- long-term benefits resulting from business travel, such as partnership building and new business opportunities," said Dr. Martin A. Asher, adjunct professor of finance at the Wharton School. "Increased business travel in this economy can actually increase sales and reduce the financial decline companies might otherwise suffer."
While much of this research is focused on sales-related travel that might not apply so much to credit unions, I think Asher's comment about partnership building is important.
I telecommute and am very comfortable working alone. But I am always super inspired whenever I get out and talk to credit union people at a CUES event and even just when I get to meet face to face with my co-workers. Yes, I chat with them via phone and e-mail every day but nothing replaces in-person meetings. I feel revitalized and full of good ideas after every headquarters visit.
How are you making travel decisions these days? Have you suspended business travel until things turn around? Are you being more selective about where you travel? Sticking closer to home?
I know margins are tight and budgets cut at many credit unions across the country, but do take advantage of face-to-face meetings when you can. To make it a little easier, CUES is offering "pay what you can" again this year for CEO/Executive Team Network, Nov. 1-4 in Orlando. If you can swing it, I know the content and networking will be well worth the investment.
Theresa Witham is a CUES editor.
