Firms flock to videoconferencing as climate change concerns, business travel costs soar

There's a growing trend among firms around the globe to replace trips with high-end videoconferencing as concerns about climate change soar in tandem with airfares and other travel expenses.

Lisa Honan of U.K.-based Eyenetwork, which brokers for third parties the use of professional videoconference facilities in 3,500 locations, says studio bookings have more than doubled in the past year while records show that meeting job candidates via videoconference is now by far the #1 use of the technology.

“The human resources departments of large firms represent top users of high-end videoconference technology today, finding it a simple and economical way to narrow a field of key personnel candidates before flying in finalists. As the price of energy sends travel costs skyward, however, we see growth in facility rentals from all corporate divisions.”

Based on company records, topping the list of corporate videoconference uses are:

1. Job interviews;

2. Court witness and expert testimony from distant locations;

3. Business to business product development meetings;

4. Short in-house international meetings; and

5. Short in-house domestic meetings

Fast-growing uses of the technology include:

• Film and theatre casting calls;

• "First date" company introductions;

• Product training sessions for employees, clients; and

• Sales presentations and product launches

“Obviously, many business trips are unavoidable but the trends we see are clear and decision-makers are more critical of travel in an era of rising costs and social environmental responsibility. More business travelers are asking: ‘is this trip necessary"’”

The firm says use of the technology has long been attractive to US and other companies coping with large geographical distances. It is now replacing more and more relatively short trips in countries large and small.

Videoconference use is expanding in tandem with fuel and other travel costs and as more governments introduce reward and taxation incentives to reach carbon reduction objectives.

Experts calculate that 1.4 billion tonnes of atmospheric CO2 per year (2 percent of global CO2 emissions) were caused by aircraft in 1990, with predictions of 4 billion tonnes by 2050, or 3 percent of total UN mid-range CO2 projections for that year.

The World Travel & Tourism Council (WTTC), meanwhile, estimates business travel constitutes about 20% of the global total. A one-third cut in such travel today would reduce CO2 emission by about 120 million tonnes – roughly equal to the national emissions of France, Greece and Denmark combined.

Reducing travel also lowers environmental impacts in other ways, including fewer taxis, car rentals and hotel stays. A taxi from central London to Heathrow airport, for example, emits about seven kilograms of carbon dioxide.

And the financial cost of business travel is huge – the third-biggest budget item for many firms, behind personnel and information technology. The WTTC estimates US business travel spending at $179 billion, followed by second-ranked Japan at $64 billion.

According to the International Air Transport Association, however, by 2010 intra-Asia traffic will be the largest market in the world, accounting for one third of world traffic. Business travel involving India and China destinations is booming. The Chinese fleet of aircraft is predicted to grow from about 860 today to 4,000 by 2020.

Increasingly aware of the need to cut emissions, many major companies are working to reduce their carbon footprints, in part through videoconferencing. For example:

• Global financial services company Credit Suisse Group estimates business flights accounted for one third of its entire carbon footprint and adopted web and videoconference technology in 2005;

• Telecommunications firm Vodafone saved over 13,500 flights per year and used videoconferencing to reduce its carbon footprint by over 5,000 tonnes;

• Electronics giant Philips, with an estimated 270,000-tonne carbon footprint due to business travel, has introduced videoconferencing to it internal online travel booking system, including information about the benefits.

A 2007 YouGov survey found the average UK white collar worker attends 91 face-to-face business meetings a year and regards 37 percent of them as unnecessary. A fifth wished to cut the number of international business trips they take and many felt fewer meetings would reduce stress and improve their life-work balance.

Eyenetwork surveys users report productivity gains by avoiding such troubles as traffic, airport queues and jet lag for journeys to meetings that may only last an hour or two. They also report shorter project completion times.

“Once a perk, business travel today is increasingly stressful and frustrating to workers and a lot of it is now seen as a chore,” says Ms. Honan.

A recent study by the Travel Industry Association of America shows:

• 3% of American business travel involved destinations outside the U.S.;

• 47% of business travelers reported that their last trip was to attend a meeting, trade show, or convention, as opposed to other activities, such as consulting or making a sales call;

• The average business trip lasts 3.3 nights;

• The average business traveler takes 5.4 trips each year;

• 20% of business travelers report that they combined work and vacation on their last trip;

• The average business traveler is 42 years old and earns an annual salary of $76,100; 60% were men;

• In the 1990's, an average of 200,000,000 business trips were taken per year;

• The U.S. south Atlantic is the most common business destination (25% of business travelers)

An airline passenger from New York to Rio de Janiero or Cairo, or from London to Dhaka, Shanghai or Vancouver has a carbon footprint of roughly 1 tonne. A traveller’s carbon footprint for a flight between New York and London is 1.4 tonnes (for more examples: www.clevel.co.uk/eyenetwork). Flying business class produces an even larger carbon footprint since seats take up more space.

According to UN research, increased demand for air transport has outpaced emissions reductions achieved through continuing improvements in technology and operational procedures.

Eyenetwork: helping companies immediately reduce their carbon footprint by brokering for hire fully supported public videoconference facilities at 3,500 locations worldwide.