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Findings were announced today from research produced by American Express Business Travel in collaboration with the Institute of Travel and Meetings (ITM). Surveys of travel managers and business travelers indicate seasoned travelers are as interested and eager to use virtual connection methods as their younger colleagues, while also admitting the critical need for face-to-face meetings. The research also explores the use of technology such as mobile devices and social communities and their influences in the corporate environment.
The study reviews how these technologies play two very distinct compelling, yet contrasting, roles in business today:
- An Alternative to Travel: Communication tools such as video-conferencing and telepresence can mitigate the need for some corporate travel.
- An Enabler of Travel: Communication tools such as mobile devices can enhance productivity while on the road and in virtual office situations.
The survey and focus group research is compiled with detailed analysis of implications in a new report entitled “Changing the Game: The Impact of New Technologies on Business Travel.” Both travel managers and travelers surveyed agreed that new technology-based communication methods are now the norm for the majority of internal meetings – particularly those that occur regularly. However, only 22% of travelers say video conferencing allows them to influence, negotiate and maintain relationships required to conduct revenue generating and client facing activity.
“Companies are focused on achieving peak employee productivity by using technology to reduce costs as new options to support a managed travel program, but also to connect people on the road more effectively when they are conducting revenue generating activities,” said Christa Degnan Manning, research director, eXpert Insights, American Express Business Travel. “Advancements in video technologies, mobile devices, and social media solutions are enhancing collaboration and relationship building through more seamless communication, but the survey showed that they are not replacing business travel to the extent that many predicted.”
Manning added: “Interestingly, our findings also debunk the notion that generation Y is leading the charge in new technology usage, finding that technology adoption is not age specific. The study showed that travelers are willing and ready to use whatever tools and methods meet their personal and corporate objectives regardless of their time or level spent in corporate life.”
Current Technology i Alternative or Enabler
More respondents indicated willingness to adopt new ways of communicating in order to reduce some travel, and also to enhance productivity and efficiency while on the road. Further, 90% of respondents believe North America and Western Europe are leading the way with adoption of webcasts, telepresence, and video-conferencing.
The research shows variation when it comes to how, when and why to use it:
- 48% of travelers say ROI from face-to-face is significantly higher than conducting a meeting via alternative methods
- 59% of travelers are offered options for internal meetings, as buyers aim to help employees stay within policy and achieve business objectives
- 63% of buyers cite cost reduction as the number one reason to adopt new technology within business travel over the past three years, and 32% of travelers say continued cost reduction to bottom line will have biggest impact over the next three years
- 34% of travelers and 27% of buyers believe productivity was a key component in the decision-making process to offer technology alternatives to travel over the past three years
Barriers to Implementing Technology-based Travel Options
Travel managers are being called upon to provide options that improve efficiency and productivity of employee connections, but in many cases do not have the proper internal collaboration or purchasing power to provide those alternatives.
- Only 13% of buyers are responsible for mobile/technology procurement related to business travel, 22% have some influence and 64% have none at all.
- 56% of buyers feel procurement of certain mobile communication should be linked with travel procurement; the contrast between this number and those actually involved shows the organizational disconnect between internal stakeholders.
Manning continued, “Regardless of who oversees new travel technology, the reality is in a corporate world everyone is focused on ROI, with the success of implementation hinging on building a strong business case. Professionals looking to pursue this integration need to quantify the range of benefits in order to justify the resources needed in time, budget and executive attention.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
