A recent survey of business executives found that a majority believe that companies that increase travel budgets during a slow economy will actually fare better than those that cut budgets back. Nearly three-quarters (72%) of businesses surveyed said that increasing travel while others are cutting back creates an opportunity to build market share and new customer relationships. Half (53%) also believed that companies that reduce their business travel will give an advantage to competitors who maintain their travel commitment.

"Travel plays an important role in business growth in a down economy, by helping businesses connect with their customers," said Suzanne Cook, U.S. Travel's senior vice president of research. "It's also clear from our survey results that the old maxim remains true: if you don't take care of your customers, someone else will."

According to US Travel, the findings illustrate a conflict within businesses looking for quick, cost-cutting measures. While business travel budgets are often first to be cut, businesses may sacrifice longer-term strategic and competitive advantages.

"It's a classic trade off between short term cost-reductions and long term value," said Kellogg Business School Professor Daniel Diermeier. "During times like these, many companies will go too far, and actually cut back on the activities that would best position them to compete in the future."

The survey of 401 executives at companies with more than $50 million in annual sales also found that:

• 82% of companies surveyed believe that business travel is important to achieving their business results;
• 81% believe that more client contact is necessary in a slow economy; and
• A strong majority (59%) strongly agree that in-person contact grows their business.

The survey, commissioned by the U.S. Travel Association and conducted by APCO Insight, was based on phone and web-based interviews between Feb. 3 and 18.