{"id":31198,"date":"2020-06-09T23:52:32","date_gmt":"2020-06-09T23:52:32","guid":{"rendered":"\/au\/en\/blog\/will-communications-technology-replace-business-travel\/"},"modified":"2023-01-13T22:05:13","modified_gmt":"2023-01-13T12:05:13","slug":"will-communications-technology-replace-business-travel","status":"publish","type":"post","link":"\/au\/en\/blog\/will-communications-technology-replace-business-travel\/","title":{"rendered":"Will Communications Technology Replace Business Travel?"},"content":{"rendered":"

In the late 2000s, Accenture wanted to streamline employee collaboration for its 180,000 employees distributed across offices in\u00a040 different countries<\/a>. They devised a plan: deploy high-end telepresence technology that would allow workers to interact face to face from anywhere in the world.<\/p>\n

At that time, pundits predicted that video conferencing was poised to become a staple in every office and, as a result, business travel would substantially decrease. In fact, two environmental groups estimated that web-based and conventional video conferencing technology could reduce business travel by\u00a0up to 20%<\/a>.<\/p>\n

That didn\u2019t happen, however. Despite a steady increase in adoption of video conferencing over the past decade, business travel also rose. U.S business travel costs increased from\u00a0$262 billion in 2012<\/a>\u00a0to\u00a0$334.2 billion in 2019<\/a>. It\u2019s clear that corporate leaders still prefer in-person, face-to-face meetings over digital communications.<\/p>\n

As we enter a new decade, though, the scope of business travel is changing dramatically. Several factors are poised to upend business travel, and this time things might be permanent. Let\u2019s take a look at how communications technology has changed and what to expect in the coming years.<\/p>\n

Communications and collaboration tools: then and now\u00a0\u00a0<\/strong><\/h2>\n

Early video conferencing solutions were expensive. Between 2005 and 2010, HD video conferencing hardware cost anywhere between $5,000 and $6,000, while higher-end telepresence rooms with three to four huge displays, custom lighting, and acoustics ran anywhere from\u00a0$350,000 to $500,000<\/a>. At the same time, the technology was often complex and kludgy. For example, in order to launch a telepresence conference, IT personnel needed the IP address of the destination site to connect both rooms together. Telepresence was not only cost-prohibitive, but experimental in its infancy.<\/p>\n

Video conferencing on PCs wasn\u2019t yet feasible either. Many computers weren\u2019t equipped with built-in webcams, and if they were, Internet speeds weren\u2019t fast enough to provide consistent, reliable, high-quality video. With such a high barrier to entry, most organisations simply weren\u2019t invested in video conferencing adoption.<\/p>\n

Technology caught up in the last decade, however. For example, every laptop now has a built-in webcam and the processing power to produce high-quality video and audio. Better communications solutions entered the market, such as\u00a0unified communications<\/a>\u00a0that allow employees to easily message, video, or call using a single app on their computers or mobile devices.<\/p>\n

COVID-19 jumpstarts remote work<\/strong><\/h2>\n

Business travel ground to a halt amidst the COVID-19 pandemic. In an April\u00a0survey<\/a>\u00a0by the Global Business Travel Association, an industry group for corporate travel managers, almost every member of the group canceled or suspended international business travel. Another 92% canceled all or most domestic business travel.<\/p>\n

As organisations around the world mandated that employees work from home, video conferencing and team messaging applications suddenly became an all-important necessity. In March, during the first week of large-scale, stay-at-home orders, users downloaded a whopping\u00a062 million business apps<\/a>\u00a0worldwide\u2014a 45% increase week-over-week and a 90% increase from the previous year\u2019s weekly average, according to App Annie.<\/p>\n

As\u00a062% of Americans work from home<\/a>\u00a0during the pandemic, organisations have undergone a crash course in remote work. To their surprise, it\u2019s been wildly successful. Companies like Facebook, Google, and Twitter will now allow employees to work from home for the rest of the year, and experts declare that\u00a0remote work will persevere post-COVID-19<\/a>.<\/p>\n

5G, AI, and virtual reality will transform communications technology<\/strong><\/h2>\n

Several future technologies will revolutionise workplace communications, making virtual meetings even more compelling for businesses.<\/p>\n