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Saturday, October 16, 2021

Business trips are ‘changed forever… and CEOs are happy with the results

Business travel, as we knew it before, has become a thing of the past. This is with several companies, ranging from Pfizer, Michelin, and LG Electronics, to HSBC, Hershey, Invesco, and Deutsche Bank. Companies around the world are pointing out that innovative new communication tools are making many journeys in the pre-pandemic era a thing of the past.

New reality
For example, consider Akzo Nobel, the largest paint maker in Europe. at its headquarters in Amsterdam; The company’s chief executive, Thierry Vanlanker, has spent the past year watching manufacturing manager David Prenslar, flapping his arms like wings and pointing excitedly, seeming to talk to himself, during “visits” to 124 factories through high-resolution augmented reality equipment used by employees inside the factories. . And therefore; It has become an easy task, which needed to travel by planes around the world before, as it can now be completed in a short time remotely, and without the hassle of traveling. For Vanlanker, there is no turning back.

“Business trips could go down by a third, and internal meetings even more so,” Vanlanker said in an interview. “It’s good for portfolios and helps our sustainability goals. Our clients have had a year of training, so video socialization is no longer an issue, in fact, there’s a huge efficiency factor in that,” he added.

A Bloomberg survey of 45 large companies in the US, Europe, and Asia shows that 84% of these companies plan to spend less on travel after the pandemic. The majority of respondents have already reduced their travel budgets by between 20% and 40%, with two out of three companies reducing both internal and external face-to-face meetings. The ease and efficiency of virtual software, cost savings, and lower carbon emissions were the main reasons cited for the cuts.

According to the Global Business Travel Association (GBTA); Spending on corporate travel could drop to $1.24 trillion by 2024, from a pre-pandemic peak of $1.43 trillion in 2019.

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