Businesses have been forced to cut down on travel expenses due to the effects of the economic recession, reports the Financial Times.
“The recession significantly reduced the amount of UK business travel. Businesses economised across the board,” claims a spokesperson for the Civil Aviation Authority (CAA). The demand has dropped most significantly on business class flights, the CAA’s research shows. The chief executive of airline operator Virgin Atlantic claimed “the days of decadence are over,” on Compare Care Hire.
The CAA also confirmed it does not anticipate the trend to reverse in 2011, despite all signs pointing to an economic recovery. It has been suggested that, because businesses place such importance on face-to-face interaction, the biggest impact of reduced travel is on the way companies hold meetings.
Video conferencing provides an exciting opportunity for companies who choose to minimise their business travel budgets and allocate budgets to be spent more efficiently. Furthermore, as pointed out by the CAA, video conferencing allows businesses to make use of technological advancements to exchange files and documents online, and utilise email and social media sites, such as Twitter.
The news comes shortly after NASA revealed how video conferencing has helped them, stating that they use video conferencing for internal and external business meetings, seminars and conferences.
NASA decided to invest in video conferencing as a way to help bring together attendees of meetings and seminars, allowing everyone to be included in discussions. Chris Kemp, IT expert at NASA, said: “Technology enables and supports one to thousands of conversations. We’re finding that if we don’t stand in the way of that conversation, incredible things happen.”