‘Technology to reduce level of business travel’

Increased use of technology such as video conferencing will reduce demand for business travel in the next 10 years.

New research shows that individual days away for business will decline to 2.0 per week in 2015, from 2.4 in 2005-06.

This is largely attributed to an increasing role of technology with the use of video conferencing, for example, expected to be used by 50% of workers by 2015, compared to 26% now.

The forecast comes from the 10th anniversary annual Barclaycard Business Travel Survey which also reveals that changes in the global economy will have the biggest impact on business travellers in the next decade.

The report says that while distances travelled for business are predicted to increase, growth will be seen at a slower rate than the 32% increase between 1996-07 and 2005-06.

Long haul air and rail services will see the most growth with business travel to global destinations expected to increase, according to the report. Distance travelled per month will rise to approximately 700 miles per person, compared to 609 miles currently. In addition business people will on average spend an extra night away from home each month, up from 4.1 nights in 2005/6 to 5.2 nights in 2015, according to Barclaycard.

With long haul travel increasing, the number of flights taken per business traveller will rise by 12% from 7.6 flights per year in 2005-06 to 8.5 flights in 2015.

But low cost air travel is predicted to be near saturation point and will level off, with 74% of  business travellers expected to use these services in 2015, no change from 2005-06.

The number of business travellers regularly using trains is predicted to drop from 34% in 2005-06 to 25% in 2015. But there may well be growth opportunities for long distance rail travel providers, according to the report.

Barclaycard Business sales director Tim Carlier said: “These trends have significant implications for the business travel industry.

“Long distance travel providers will need to respond to the increasingly demanding business traveller who is travelling further distances for longer periods of time. Furthermore, the decline in shorter journeys may provide a challenge for the industry to consider other ways in which to grow business.”

Meanwhile, 45% of business travellers say they are travelling for business more in 2005-06 than they were in 2004-05. In contrast, actual miles travelled per month have decclined from 642 in 2004-05 to 608.5 in 2005-06.

The main reason given for the increase in business travel is business expansion, both overseas (33%) and in the UK (18%).  Of those who say they are travelling less, 25% put this down to technology reducing the need.

Report by Phil Davies