North America, Western Europe Lead Use of New Technology for Business Travel

North America, Western Europe Lead Use of New Technology for Business Travel

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 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 percent of travelers say video conferencing allows them to influence, negotiate and maintain relationships required to conduct revenue generating and client facing activity.

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 percent 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 technology, that 48 percent of travelers say ROI from face-to-face is significantly higher than conducting a meeting via alternative methods, while 59 percent of travelers are offered options for internal meetings, as buyers aim to help employees stay within policy and achieve business objectives.

In the same breath, 63 percent of buyers cite cost reduction as the number one reason to adopt new technology within business travel over the past three years, and 32 percent of travelers say continued cost reduction to bottom line will have biggest impact over the next three years, and 34 percent of travelers and 27 percent of buyers believe productivity was a key component in the decision-making process to offer technology alternatives to travel over the past three years.

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 percent of buyers are responsible for mobile/technology procurement related to business travel, 22 percent have some influence and 64 percent have none at all. Around 56 percent 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.