Comment: Technology to boost business travel

Kevin Mitchell, chairman of the US-based Business Travel Coalition (BTCBusiness Travel Coalition: Founded in 1994, the mission of Business Travel Coalition is to bring transparency to industry and government policies and practices so that customers can influence issues of strategic importance to their organizations (source: www.businesstravelcoalition.com).), believes new technology can lead to a growth in business travel instead of threatening it

The ABTN feature ‘Business travel is not under 'significant threat' – Amadeus’ is based on a well-researched report but there are additional historical and technology use considerations to add to the analysis when viewing the long-term impacts of new communications technologies on business travel activities.

When the telegraph lines were laid alongside the rail tracks the pundits of the day predicted the demise of business travel by rail. However, business travel by rail increased with a head of steam never seen before. Similarly, connected networks of long-distance telephone service providers were supposed to be the end of jet travel. Instead, jet travel took off well beyond all expectations. It would appear that when new communications technologies emerge and meet up with existing transportation services there can be a boom in commercial activities and business travel demand. 

Video conferencing, and in more recent years telepresencing, has become better, cheaper and ubiquitous which has tremendously increased its network value. For some 20 years this technology has helped reduce some kinds of business travel. However, there are two fundamental realities that will likely continue to drive business travel demand, in BTC’s view.

First, as the world’s population grows, and economies modernise, there will be an absolute increase in commercial activity and the corresponding number of potential business travellers. Second, beginning with email decades ago, and various forms social media more recently (for example: LinkedIn), business people now maintain more relationships, which eventually leads to a relative increase in the need to meet face-to-face.

Another important consideration is how new technologies can increase individual productivity and organisational effectiveness. Two examples illustrate this point:

Example 1

A healthcare provider’s corporate customer in Madrid is unhappy with service provided to its employees. The London-based healthcare company in the past would have dispatched a team of managers to assess the situation, fix the problems and endeavour to make the customer happy.

Today, communications technologies can help initially diagnose the problems. Then a smaller team can fly to Madrid to meet with the customer. Finally, the healthcare provider’s business unit president can videoconference in to a Madrid meeting where her managers are participating and make the service improvement commitments necessary to satisfy the customer’s senior leaders and keep the business.   

Example 2

The green lights of an economic rebound are on the horizon. One automobile manufacturer dispatches its sales people every Sunday night to prevent competitors from enjoying an advantage of securing more face-to-face time with prospective customers.

A competing auto company organises its sales activities differently. It allows its sales teams to carry out company and product updates as well as new product introductions using webinars and video telepresencing during the first half of the month.

These sales executives maintain existing relationships online and pre-qualify prospects so that when they do travel during the second half of the month their sales production is optimised by seeing the better prospects. Importantly, they also get to spend some Sundays with their families. This approach can remove cost, speed the sales cycle and increase the top line.

Conclusion

A strong argument can be made that today’s new and emerging technologies are far and away more robust on a relative basis that any historical communications/technology innovations. There are countless ways these new tools can help businesses reduce costs, increase profitability and improve travellers’ lives without negatively impacting business travel demand and the global travel industry infrastructure that supports it.