Business Travel, not an expense but a money maker!

Recently, the U.S. Travel Association released a study conducted by Oxford Economics, a worldwide renowned provider of economic analysis forecasts and consulting advice. The study is called “The Oxford Economics Study: The ROI of Business Travel.”

This study has come to the conclusion that business travel creates additional revenues. A few of the key findings are:

· First and foremost, executives and business travelers estimate a 28 % loss of current business without face-to-face meetings. Furthermore, they estimate that about 40% of their prospective customers are converted to new ones with in-person meetings compared to 16% without such a meeting.

· The majority of business travelers stated that 5-20% of their new customers were the result of tradeshow participation.

· Very interestingly, executives state that in order to achieve the same outcome of incentive travel, an employee’s total base compensation would need to be increased by 8.5%.

· Calculation showed that for every dollar invested in business travel companies realize $12.50 in incremental revenue and $3.80 in profits.

· Another interesting outcome is that a reduction of business travel can reduce profits for years. It would take more than three years for profits to recover.

· Global picture: According to the research 10% increase in business travel spending will result in an increase of the US GDP of 1.5-2.8%

For years we have been preaching at POTHOS how important face-to-face meetings are. Finally, this study confirms that not everything can be done in the cyberspace.

For more info about this study please visit www.ustravel.org.

LuggageLimits.com

One method used by airlines to increase revenue (or let's say make up for their financial mismanagement) is to charge fees for checked luggage. Over the past year airlines have revised their fees, changed the number of bags which can be checked in for free, cut the weight limits, etc.

It is almost impossible to keep up with the changes and additional fees collected. Every single time you go on a flight it is important to check the new luggage policies as they change on an ongoing basis.

As always when there is a need/problem somebody comes up with a solution. In this case a COMPLIMENTARY solution is provided by www.LuggageLimits.com. On the website you can find a so called "Check Your Limits" calculator. By entering the airline you are flying with and the departure and arrival airport you can easily look up the luggage restrictions/limits.

Within a few seconds you get the answers you need. We have tried this tool out and compared the results with the information on the airlines' websites; it has been accurate every single time.

Although the website has an internet based airfare booking widget, we still recommend travelers to use a professional travel agent such as POTHOS. Why? Beyond luggage limits there are many other restrictions and rules which can turn into significant costs if you don't know about them and how to play around such "traps."

Mexico; good or bad choice for a destination?

For many months now, all we are hearing about is the violence in Mexico. The reports are not unforunded. The border towns such as Juarez and Tijuana are nearly battlefields. This violence has affected some tourists but is not centered in tourist areas. The imporant note is that this violence is not found in the interior/colonial/tourist ctities such as Cabo San Lucas, Puerto Vallarta, Acapulco, Merida and such. There is still petty theft problems in Mexico City but as long as you are using reputable, licensed providers.... you would not experience a problem. The best way to guard against this is to use a experienced travel agency. and maybe chose some private services so you are not left to find taxis or hire guides on the street.
It is also important to note that the Dollar/Peso exchange rate has become favorable to the Dollar by 30% in just teh past 12 months. I can remember last eyar with it was 10 to 1 and now it is 13 Pesos to 1USD> this makes the upscale hotels, restaurants and services a terrific value. Additionally, there is no sales tax for meetings in Mexico. This accounts for an extraordinary 15% savings.
In being mindful or budgets and corporate expenditures, Mexico might just be a much better value than most US cities.