A recent study has confirmed what many in the travel business know….cutting too much on travel is bad for business!  USA Today has a story today that proves that drastically cutting your travel budget isn’t such a good idea.

Two new studies by Global Insight suggests that by paring down travel budgets for their executives, businesses lost out on creating 5.1 million jobs, $193 billion in profits and the government lost $101 billion in tax revenue.  They maintain that for every dollar a company spends on travel, an average return of $3.80 comes back in profit, and $12.50 in increased revenue.

“Cutting business travel by 30% when an industry’s sales are down 5% is going too far,” said one of the study authors.  Another study by Oxford Economics came up with a similar conclusion.  “There are bottom line benefits to be realized on the immediate horizon, but over a 12-month period, we’ve seen cuts in business travel that would generally be considered penny-wise and pound foolish.

Phocuswright, the travel industry research firm, projects a 15% drop this year versus for 2008 in business travel.   So do our industry a favor, won’t you? Ask your boss to let you go to the big convention again this year!