Has business travel really changed forever?
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Has business travel really changed forever?
From reading comments in a number of threads, I can't help but notice that some people firmly believe that COVID has changed business travel forever. I'm not sure I agree so wanted to chuck my two pence in and see what others think. I'm a modular student in my 30's and currently work in an organization with a few thousand employees across a number of sites in the UK as well as a few overseas. So I'm giving this from the perspective of someone who does occasionally travel for work.
There are of course plenty of instances where someone absolutely must travel as part of their job such as engineers installing equipment, performing maintenance etc. and short of some significant advances in technology that won't change for some time.
So yes, businesses across the world have been forced to use meeting tools such as Teams, Zoom etc. and I really wouldn't be surprised if a hybrid working model becomes the norm for a lot of places. For the organization I work for, online meeting tools such have been the norm for many years. However, there are plenty of occasions where people would get together in a room as opposed to an online meeting for the simple fact that some things work better this way. Nothing can really replace human contact for the same reason having a couple of beers with a mate at the pub is far better than over a video chat. It just isn't the same, is it?
To give another example, I'll often attend training courses as part of my job. I can choose to attend these in person or over video link in the comfort of my own home. When the video link option became available a few years ago, I thought I'd give it a try for convenience sake. Whilst it technically worked well etc. it just wasn't the same. Without actually being there, I felt more like a spectator than part of the session and it just wasn't as engaging. Other peers have felt the same and I've since preferred to attend these in person.
I imagine that there are some companies that have never ventured into online conferencing etc. and COVID will have forced them to change, I would guess these must be in the minority these days though.
To summarize, whilst online conferencing is technically great and has served as a workaround over the past year or so, I think it's just that; a workaround. I'm not sure there will be a dramatic shift. Companies are obliged to provide a safe working environment for employees, but when the risk is no longer there or negligible, I can personally see travel returning to close to normal.
What are other people's thoughts?
There are of course plenty of instances where someone absolutely must travel as part of their job such as engineers installing equipment, performing maintenance etc. and short of some significant advances in technology that won't change for some time.
So yes, businesses across the world have been forced to use meeting tools such as Teams, Zoom etc. and I really wouldn't be surprised if a hybrid working model becomes the norm for a lot of places. For the organization I work for, online meeting tools such have been the norm for many years. However, there are plenty of occasions where people would get together in a room as opposed to an online meeting for the simple fact that some things work better this way. Nothing can really replace human contact for the same reason having a couple of beers with a mate at the pub is far better than over a video chat. It just isn't the same, is it?
To give another example, I'll often attend training courses as part of my job. I can choose to attend these in person or over video link in the comfort of my own home. When the video link option became available a few years ago, I thought I'd give it a try for convenience sake. Whilst it technically worked well etc. it just wasn't the same. Without actually being there, I felt more like a spectator than part of the session and it just wasn't as engaging. Other peers have felt the same and I've since preferred to attend these in person.
I imagine that there are some companies that have never ventured into online conferencing etc. and COVID will have forced them to change, I would guess these must be in the minority these days though.
To summarize, whilst online conferencing is technically great and has served as a workaround over the past year or so, I think it's just that; a workaround. I'm not sure there will be a dramatic shift. Companies are obliged to provide a safe working environment for employees, but when the risk is no longer there or negligible, I can personally see travel returning to close to normal.
What are other people's thoughts?
There will certainly be cases where business travel will be needed but there are also a lot of cases where companies have come to realise, through the pandemic, that a chunk of business travel is not strictly necessary. The factor that will focus the minds of a lot of companies, is the large amount of money that they have saved by not sending people overseas, especially as far as business travel is concerned, as the tickets are always pretty pricey. A lot of airlines obviously think there is going to be a lull in the numbers for a considerable time with airlines retiring excess capacity [even in modern airliners like the A380] and others re-configuring their interiors with more premium economy type seats instead of business class. Other carriers are "upping their game" to improve their business class offering, anticipating there will be a fight on for the fewer business class travellers that will still be flying. If you're lucky enough to still be flying around, you might find the service is better than pre-pandemic 
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Getting back to normal for my business with travel, though we have done it throughout the pandemic as Construction sector has key worker status. Long haul flights down from 18 to 6 with short haul down from many to around 30 on April to April basis. Already done 1 long haul and 4 short haul this year, and diary filling up. It has not been easy, and testing and quarantine are a pain, but it has proved to be a very successful year for us.
Aviation in China I am told is up 10% up on pre Covid levels, so not everyone buying into Zoom / Teams mantra , we have not, and it has proved very successful. Personally the big drop has been holiday flights, with only 1 last year 😢 Hoping to do a lot more this year starting with another trip to Madeira in August 👍👍
Cheers
Mr Mac
Aviation in China I am told is up 10% up on pre Covid levels, so not everyone buying into Zoom / Teams mantra , we have not, and it has proved very successful. Personally the big drop has been holiday flights, with only 1 last year 😢 Hoping to do a lot more this year starting with another trip to Madeira in August 👍👍
Cheers
Mr Mac
Last edited by Mr Mac; 18th May 2021 at 19:23.
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We have been doing business globally for over 30 years. While the travel is not always necessary, although it’s tough to fly an aircraft without being there, we have survived through personal relationships. These are not built on phone calls or video. Showing up, shaking hands, looking each other in the eye and sharing a meal all build strong bonds of trust. In these days of fancy scams that’s important.
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Flyingfemme
Could not agree more and glad to hear that you and your company are also weathering this storm.
Cheers
Mr Mac
Could not agree more and glad to hear that you and your company are also weathering this storm.
Cheers
Mr Mac
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Actually, one other thought occurred a while ago... I wonder how many of the wealthy passengers who would normally fly first class have opted for chartered private jets when they needed to travel over the past year and now they may not want to go back to their old ways of travelling.
I could be completely wrong, but I'm not 100% convinced things have negatively changed forever.
Paxing All Over The World
I have probably said in here before: When in telecommunications, I started with Video Conferencing systems in 1987. I used video and audio conf systems and then, when I changed jobs, from home for the last 20 years.
There is no real substitution for being there. Video can help a lot after you have made contact (and hopefully contract) but you have to be there.
When they show you around their premises (be they supplier or client) you can spot things and asks questions about detail that is otherwise beyond you.
There is no real substitution for being there. Video can help a lot after you have made contact (and hopefully contract) but you have to be there.
When they show you around their premises (be they supplier or client) you can spot things and asks questions about detail that is otherwise beyond you.
Last edited by PAXboy; 20th May 2021 at 16:19. Reason: typo
I am neither a pilot nor an engineer. Many years ago, prior to 9/11, I was visiting the aunt of my wife in San Francisco. The Aunt had a friend who was something senior at the United base at SFO. He kindly agreed to take me on a tour.
Now, maybe I'm reading too much into this but he took me everywhere. We went through a completely stripped out 747, into the shop where they were packing escape chutes, the engine shop, I don't think we missed anything.
Another occasion in the USA I asked someone in a railway museum about a particular item in their collection I couldn't find. He had to drive the next train (I went with him) after which he took me to the shed where the item was. As we trundled down the main line he stood out from behind the controls and asked if I'd like to drive.
What's any of that got to do with business travel? It's about personal contact. Set aside the simple fact that neither could have happened if I had not "been there" I put both experiences down to the fact that I was asking "the right questions" and talking sensibly.
In a business context one of my clients had a particular problem. After some investiagtion (including a visit to the client) I came to the conclusion that the issue was related to a competitor company to my employer. However, I had met someone from that comptitor at several industry meetings so I phoned him. He put me in touch with somone at head office, problem solved. Had I not attended the meetings I might have seen him on Zoom but I wouldn't have gone out for a beer where we got to know each other which meant I felt able to phone him.
Humans are (generally) sociable beings. The contacts we make face to face are stronger than any we might make on a video call.
A slightly different tack. Companies go through phases. Yes, you can travel. Then the budget gets a bit tight so, essential travel only. Then things ease a bit and you even get business class for long haul. Then the budget gets tight etc. etc. I see Zoom and Teams in that light. In the short term we'll continue to use them but I anticipate a return to getting in the car, or train, or plane, or row boat(!) to occur but probably not for a few years.
Probably when the boss has had a miserable Zoom call and decided a person to person meeting is needed!
Now, maybe I'm reading too much into this but he took me everywhere. We went through a completely stripped out 747, into the shop where they were packing escape chutes, the engine shop, I don't think we missed anything.
Another occasion in the USA I asked someone in a railway museum about a particular item in their collection I couldn't find. He had to drive the next train (I went with him) after which he took me to the shed where the item was. As we trundled down the main line he stood out from behind the controls and asked if I'd like to drive.
What's any of that got to do with business travel? It's about personal contact. Set aside the simple fact that neither could have happened if I had not "been there" I put both experiences down to the fact that I was asking "the right questions" and talking sensibly.
In a business context one of my clients had a particular problem. After some investiagtion (including a visit to the client) I came to the conclusion that the issue was related to a competitor company to my employer. However, I had met someone from that comptitor at several industry meetings so I phoned him. He put me in touch with somone at head office, problem solved. Had I not attended the meetings I might have seen him on Zoom but I wouldn't have gone out for a beer where we got to know each other which meant I felt able to phone him.
Humans are (generally) sociable beings. The contacts we make face to face are stronger than any we might make on a video call.
A slightly different tack. Companies go through phases. Yes, you can travel. Then the budget gets a bit tight so, essential travel only. Then things ease a bit and you even get business class for long haul. Then the budget gets tight etc. etc. I see Zoom and Teams in that light. In the short term we'll continue to use them but I anticipate a return to getting in the car, or train, or plane, or row boat(!) to occur but probably not for a few years.
Probably when the boss has had a miserable Zoom call and decided a person to person meeting is needed!
Web conferences can take a lot of the routine meetings and company team folklore meetings. But this move has happened long before Covid. What is left will stay as personal meetings cannot be substituted. Confidential matters are nothing for web-conferences and e-mails. Many companies experience this and stolen data only now. Whoever had a web connection fail during important meetings will insist on being there in person for the truly important stuff the next time. During Covid positions and people changed. So the need to meet in person is even bigger and more urgent now.
Business travel will resume and come back. However cost might play a bigger role. This is why I am sceptical about Premium Economy growth predictions myself expecting people to go either cheap or comfortable, Basic Economy or Business Class.
Business travel will resume and come back. However cost might play a bigger role. This is why I am sceptical about Premium Economy growth predictions myself expecting people to go either cheap or comfortable, Basic Economy or Business Class.
The very wealthy, who have used private aircraft during the last 14months to avoid and minimise the potential risks of catching covid on commercial flights might well continue to use these private flights so long as they are convenient and cost effective. However, for longer haul the commercial product will triumph, both by cost and reliability. Such persons didn't get very rich by squandering money foolishly. The extremely wealthy will carry on as before, using their own private aircraft. I heard of such a family in California who own a G650ER, but use it minimally, and for legs of less than 400miles! All about being comfortable and projecting the right image....
As mentioned, the value of personal meetings, especially when it comes to strong business relationships and trust becomes more important the larger the business and longer the relationship. Business class will be the chariot to bridge the gaps, otherwise it will just end up being "Our algorithm against your algorithm" at some point in the not too distant future.
As mentioned, the value of personal meetings, especially when it comes to strong business relationships and trust becomes more important the larger the business and longer the relationship. Business class will be the chariot to bridge the gaps, otherwise it will just end up being "Our algorithm against your algorithm" at some point in the not too distant future.
I used to work for a Global multi-national.
In the jobs I did, the need for relationships was v v important.
However, some groups got together because they could. They had a travel budget and used it. IMHO the "Travel Budget - so use it" travel will end.
Some biz travel will come back. Much will not.
In the jobs I did, the need for relationships was v v important.
However, some groups got together because they could. They had a travel budget and used it. IMHO the "Travel Budget - so use it" travel will end.
Some biz travel will come back. Much will not.
As soon as your competitor starts to present his new stuff to the customer in person you will need to follow.
I agree that we might not see global "climate conferences" with 20k participants and no real use anymore.
I agree that we might not see global "climate conferences" with 20k participants and no real use anymore.
A percentage of business travel will return, the question is how much. The technology for online meetings improved and was used because there was no other option, how many people had even heard of Zoom before COVID happened ?
The personal touch is still needed and somethings can’t be done online so the essential trips will still be made. If it can be done equally well online then it’s gone for good because the COVID lockdown changed the playing field and the teams adapted permanently to the new rules which they have found are saving them money.
Airlines with premium cabins will still need to fill them so I would expect to see discounting in an attempt to tip the balance in a decision over a marginally necessary trip or to persuade a few better off pax to upgrade from economy.
A business class ticket at 3-4 times the economy fare will be a difficult sell, get the fare down to double the economy price and you’ll have a lot more interest. Basically it comes down to yield management and how much they can get away with charging.
The personal touch is still needed and somethings can’t be done online so the essential trips will still be made. If it can be done equally well online then it’s gone for good because the COVID lockdown changed the playing field and the teams adapted permanently to the new rules which they have found are saving them money.
Airlines with premium cabins will still need to fill them so I would expect to see discounting in an attempt to tip the balance in a decision over a marginally necessary trip or to persuade a few better off pax to upgrade from economy.
A business class ticket at 3-4 times the economy fare will be a difficult sell, get the fare down to double the economy price and you’ll have a lot more interest. Basically it comes down to yield management and how much they can get away with charging.
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And doing it over the link gets there quicker and potentially at the *customer's* convenence.
You're also assuming that there will be offices to visit.
It doesn't mean that the need for travel for business will not resume - just that its value to many customers has probably diminished - so I don't think demand is likely to return to previous levels.
Paxing All Over The World
Overall, I agree with Dryce with no full return to previous levels.
A key factor in who travels for buisness may well be age related. Those who have been used to the regular travelling, may want to get back to it. New business' may well start with a different approach, particularly those forged during the pandemic. Further, as new generations move up the corporate greasy pole, they might change the way the older generation operated.
A key factor in who travels for buisness may well be age related. Those who have been used to the regular travelling, may want to get back to it. New business' may well start with a different approach, particularly those forged during the pandemic. Further, as new generations move up the corporate greasy pole, they might change the way the older generation operated.
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A percentage of business travel will return, the question is how much. The technology for online meetings improved and was used because there was no other option, how many people had even heard of Zoom before COVID happened ?
The personal touch is still needed and somethings can’t be done online so the essential trips will still be made. If it can be done equally well online then it’s gone for good because the COVID lockdown changed the playing field and the teams adapted permanently to the new rules which they have found are saving them money.
Airlines with premium cabins will still need to fill them so I would expect to see discounting in an attempt to tip the balance in a decision over a marginally necessary trip or to persuade a few better off pax to upgrade from economy.
A business class ticket at 3-4 times the economy fare will be a difficult sell, get the fare down to double the economy price and you’ll have a lot more interest. Basically it comes down to yield management and how much they can get away with charging.
The personal touch is still needed and somethings can’t be done online so the essential trips will still be made. If it can be done equally well online then it’s gone for good because the COVID lockdown changed the playing field and the teams adapted permanently to the new rules which they have found are saving them money.
Airlines with premium cabins will still need to fill them so I would expect to see discounting in an attempt to tip the balance in a decision over a marginally necessary trip or to persuade a few better off pax to upgrade from economy.
A business class ticket at 3-4 times the economy fare will be a difficult sell, get the fare down to double the economy price and you’ll have a lot more interest. Basically it comes down to yield management and how much they can get away with charging.
the space of at least 3 economy seats it would not make economic sense to have that real estate selling for less than 3x economy prices.
In the last year I have 'attended' several training sessions over videoconference. The only ones I got a lot from were those where the lecturer and the participants all knew each other to a greater or lesser degree. It was much more interactive and therefore the quality of the learning was greater. The sessions in which I knew no one, I kept quiet and as someone has said above, I felt like a spectator.
How do you go from the latter to the former? You have to meet them face to face.... Meetings will return and business travel will return; maybe in a different way, but it will return, otherwise connections will be lost and therefore so will business.
How do you go from the latter to the former? You have to meet them face to face.... Meetings will return and business travel will return; maybe in a different way, but it will return, otherwise connections will be lost and therefore so will business.
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Many more people willing / expecting to be able to do that presentation over a remote link.
And doing it over the link gets there quicker and potentially at the *customer's* convenence.
You're also assuming that there will be offices to visit.
It doesn't mean that the need for travel for business will not resume - just that its value to many customers has probably diminished - so I don't think demand is likely to return to previous levels.
And doing it over the link gets there quicker and potentially at the *customer's* convenence.
You're also assuming that there will be offices to visit.
It doesn't mean that the need for travel for business will not resume - just that its value to many customers has probably diminished - so I don't think demand is likely to return to previous levels.
Offices are open for business all over the world when you want them to be, but there needs to be a want. It maybe some people do not want to return to work in the same old way, as it did not fit with their life style. I have heard from customers who are having huge issues with people working from home, who basically believe they can do their hours when ever they want, ignoring the fact that other people need to be in touch with them during core hours. Sending responses to questions at 22.00 to a question asked at 10.00 in the same time zone is unreasonable, and puts pressure on the whole team, but I have had that same example trotted out to me nearly 10 times from various companies in the UK in the last 2 weeks while over there. That method of work will lead to issues for companies, and ultimately the individuals involved. Many people in companies who did not get furloughed have worked really hard, and many on reduced pay to keep the wheels going around while other took months off at 80% pay but often with reduced mortgage etc. Not sure I agree with your view of the future, and I hope your company is lucky as everything we are being told about the UK business sector in the coming year is distinctly gloomy as companies will go bust when weened off the Govt Covid support. As regards Business travel, my people are up and travelling and meeting people and closing deals.Its not easy, and it is costly, and not so much fun in these strange times, but our hit rate justifies the expense, and THE some what limited risk due to young teams, and vaccines and common sense. You have to come out of the bunker some time.
Cheers
Mr Mac