North America and Western Europe Lead Use of New Technology for Business Travel According to a New Industry Study
- Survey Results Indicate New Technology Adopters are not Just Gen Y; Veteran Travelers Have Expressed Just as Much Use of New Collaboration Technologies –
- New Educational Web site Launched to Guide Travel Professionals through Virtual Meeting Adoption
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 – 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.”
New Educational Website
To assist travel professionals with getting in the game of travel options and accelerating their deployment enterprise wide, American Express Business Travel created an educational and informational website. The site offers guidance for building a business case by walking through key scenarios demonstrating the benefits – cost savings, productivity savings and others. Advice and tips are also provided throughout. Additionally, the site features a variety of content including articles, demos and case studies. The site is available at: http://virtualtravel.americanexpress.com/
Tips for Travel Managers
- Stay In Tune with the Traveler – The pre-conception that more senior, mature travelers are resistant to trialing and adopting new technology is un-founded. If the change delivers against travelers’ personal motivations, they will adapt accordingly.
- Please the Client – A heavy weighting of the customer base towards certain location, industry sector time zone, culture and technology set up could determine the direction that is taken by way of technology development, adoption, usage and policy.
- Justify Your Investment – The heavy investment required for most technology based products twinned with the pressure to deliver significant return, leads to the need for travel buyers to build realistic and thorough cases in co-operation with the other dependent internal functions to obtain board level support for any new projects or initiatives.
- Communication is Key – A well considered and engaging communications plan, including trials, education and training may mean the difference between the success and failure of any technology driven initiative that aims to change any element of traveler behavior.
- Support from Suppliers – TMCs should offer a range of communication tools to their product mix in order to provide the holistic services that companies demand. Hotels and companies should work together to trial new communication hubs within key properties, to drive commercial value to both parties.
About the Study | eXpert insights, the research practice of American Express Business Travel’s Global Advisory Services partnered with the United Kingdom-based Institute of Travel and Meetings (ITM) to survey approximately 150 travel buyers and 230 senior business travelers, identified as those with board level and senior management with budget responsibility for their own travel expenditures. Conducted in February and March 2010, these surveys were then followed up with two focus groups containing travel buyers and senior travelers in May. All participants were based in EMEA, with the buyer geographical break-down as follows: 46% of respondents with global responsibility, 19% EMEA, 27% National UK and 8% Europe.
About American Express Business Travel | American Express Business Travel (), a division of American Express Company, is committed to helping its clients maximize the return on their travel investment through cost savings strategies, world-class customer service, and greater spending control. With clients ranging from small businesses to multinational corporations, American Express Business Travel provides a combination of industry-leading technology, travel management consulting, and strategic sourcing and supplier negotiation support, alongside global customer service available online and offline. The Company also provides a dynamic online community () harnessing the collective intelligence of those in the business travel industry with a variety of perspectives, best practices, current research and industry news.
American Express operates one of the world’s largest travel agency networks with locations in more than 140 countries worldwide. Total travel sales volume in 2009 was $21.5 billion, including proprietary volume, volume processed through joint ventures, and American Express branded volume processed through its partner network.
American Express Business Travel