Video Conferencing: Threatening Business Travel - Coursework Example

Video Conferencing: Threatening Business Travel Introduction The business tourism industry is now facing a very serious threat to its existence: thedevelopment of video conferencing. This issue has been raised critically in the recent decade. Low-priced airline fares and technology have transformed the competition in the tourism industry. Nowadays it appears there is a blatant demand for video conferencing. Innovative programmes that weigh the costs of video conferencing against business travel, more restricted travel budgets, environmental demands, global plagues and more affordable (Davidson & Cope 2003), better video technology are radically transforming the business world. Several publications put an emphasis on the developments and realities of video conferencing. They illustrated case after case of people making use of video conferencing and avoiding travel (Davidson & Cope 2003). A number of companies, such as Siemens, LifeSize, and Cisco Systems, have been developing this form of technology for several years now (King 2009). Fortunately, or unfortunately for others, the rapid progress of the current economic crisis is speeding the pace of its implementation. It is not likely that video conferencing can replace business travel, yet companies are increasingly resorting to it as the drawback of the technology—such as dropped calls, wobbly connections, and confusing delays—mostly has been remedied (Tracy 2009). This essay is an attempt to discuss the possibility of video conferencing replacing business travel in the near future. Through specific examples and empirical evidence this essay aims to give light to this new trend in technology and business tourism industry. The current literature on this issue includes the inexpensiveness of video conferencing and transforming economics as well as the ‘not so sophisticated’ adaptations of the technology such as those provided by google, yahoo, or skype. These low- and high-tech video technologies are by now beginning to transform numerous procedures not just in the business tourism industry but also in other professional and skilled sectors of the economy. The Impact of Video Conferencing on Business Travel Several authors discussed particularly the effect of video conferencing on business travel and reduced popularity of business travel. For instance, Hewlett-Packard and Cisco have experienced a considerable growth rate in their video conferencing units over the recent decade (King 2009). The enterprise of video technology is fascinating in two points. First, from the point of view of the customers, although the direct capital needed is not negligible, it evidently saves a great deal of money (Beaverstock, Derudder, Faulconbridge, Witlox & Beaverstock 2010). Video technology also embodies a remarkable way for employers to prove to their employees their concern for both their work/life balance and for making their business socially responsible (Collis 2002). Yet second, from the point of view of the providers of these technologies, the trend has several appealing strategic points (Beaverstock et al. 2010). With their terrain of diminishing travel, are IT companies really contending against the telecommunications industry? Interestingly, they are competing against the business tourism industry—and aiming at their most regular, best, elite customers (Beaverstock et al. 2010). An article in New York Times inserts a more personal argument to the implementation of video conferencing. The editorial emphasises that this form of video technology is becoming extremely refined that even doubters overlook the fact that they are intermingling thousands of miles distant from one another (King 2009). This progress of video conferencing has been covertly persistent as the technology gradually but certainly advanced (Poole 1996). Scholars argue that the surfacing trend transcends a response to increasing costs of travel and a deteriorating economy: “The technology tools are going to change the way corporations think about travel and work in the long run, (Poole 1996, 78)” argued by Claire Schooley, a scholar at Forrester Research. Earlier predictions that video conferencing might replace business travel have been untimely and common. The major difference at present, scholars claim is that video conferencing is at last coping with its promise (Tracy 2009). The progress of the technology is unparalleled. The development has been a sequence of gradual advances and stable investment in computer and software processing, and telecommunications (Davidson & Cope 2003). Ever more, business tourism industry does not just have to be explained in terms of the outcome but also in terms of the context. Moreover, current health outbreaks such as bird flu, SARS, have established video conferencing as an increasingly viable alternative to personal or face-to-face meetings (Davidson & Cope 2003). A large portion of business travel is envisioned to be transformed to video conferencing programmes—either with committed state-of-the-art videoconferencing procedures or easier alternatives. From the largest commercial travel industry, American Express is creating an operation that will work out costs of numerous commercial alternatives and necessities (King 2009). The latest American Express programme will inform and recommend during the process of trip booking when video conferencing can be more affordable than buying an airline ticket (King 2009). This contest between video conferencing and the travel industry will keep on heightening in the near future. It is a competition that the business tourism industry will definitely find it difficult to win. Business travel will have to formulate a new profit approach that does not rely quite greatly on elite and business-class travellers for their revenues (Collis 2002). Sooner or later, people will remember travel ads for lavish seats and suites with the similar wistfulness that people see advertisements from the pre-airline-deregulation (King 2009, 1) period. Is it Possible to Integrate Video Conferencing with Business Travel? Cutting down business travel costs with video technology devices is as simple as answering a telephone call. When travelling becomes too taxing the world will resort to video conferencing. Going to a particular place can occasionally be very time consuming and is more sensible to meet through video conferencing. The process of video conferencing employed for years by large companies and other business sectors is presently inexpensive for the public (Tracy 2009). Video technology is utilised by small businesses, students, and by soldiers to communicate with their families (Beaverstock et al. 2010). With the current space knowledge video technology is quite within reach. High definition video conferencing is provided by numerous companies offering a more realistic and clearer picture during communication. The procedure is much cheaper than the initial video conferencing device with key enhancements (King 2009). Business travel, fuel cost and driving time can all weaken the popularity of travel. A massive portion of this cost will get rid of itself with video technology (Tracy 2009). Time is vital and efficiency should be considerable in any economy or industry. An organisation aiming to become successful should exploit all advanced technology. Video conferencing is a rational way of lessening the cost of business travel. A video conferencing programme affords itself with reduction on preparatory activities, hotel expenses, car rentals, and air costs (Collis 2002). Energy used on travel can be relocated to other sectors in the enterprise. Video conferencing will provide further productivity to an enterprise, and lessen cost, generating efficiency without the difficulty of travel (Poole 1996). An organization can employ video conferencing to communicate with people across the globe. The gap in connections can put a discrepancy in conferencing expense and accessibility (Davidson & Cope 2003). Making use of IP connections are more affordable and available (Tracy 2009). Time kept on travel can afford gains to the general economic wellbeing of an enterprise. Any prospect to lessen business cost should be considered. Travelling can also lessen the costs of business by adding an inclusive peaceful excursion (Davidson & Cope 2003). The same hotel expense will be a cost whether it is gratification or business, to add a relaxing service will enhance productivity and tension will be lessened; building a better work setting (Davidson & Cope 2003). Regardless of the extent of the availability of technology it will at all times be important to meet people face-to-face. However, with a video conferencing system there will be an extra of the business budget for the travel (Tracy 2009). A competitive edge can position an enterprise in the vanguard of the competition. Such affordable, dependable videoconferencing also exposes the prospect of isolated uses for professionals, such as law or medicine. As stated by Casey King, the chief technology officer of LifeSize, “You used to bring people to experts, now you can bring experts to the people” (Tracy 2009, 85). As organisations cut down financial allocations for travel, some are resorting to video conferencing for conventions. For instance, Sybase, a business intelligence software firm, aims to expand its video conferencing equipment at the firm as it decreases travel expenses, as revealed by the firm’s purchasing manager for travel (King 2009). Carlin disclosed to Business Travel News Magazine that business travels are being controlled and analysed thoroughly: “As a company we are on such a great path that we don’t want to interfere with our ability to do business, but where we can we’ll use videoconferencing to keep people off of airplanes” (King 2009, 1). The loss of the business tourism industry has led to a profit for suppliers of videoconferencing services and devices (Beaverstock et al. 2010). According to consulting company Nemertes’s vice president of communications research, Irwin Lazar, “There was a 20% jump in the last year for companies that were making investments in videoconferencing to reduce travel” (King 2009, 1). Modal transformation can provide a valuable contribution to business travel, specifically if an innovative high-speed line in the UK is developed and the European telecommunications becomes more completely consolidated (Beaverstock et al. 2010). Nevertheless, the possible reduction in emissions is comparatively negligible in the perspective of the general aviation objective, revealing the comparatively negligible portion of short-haul and local aviation emission in the overall aviation emissions in the UK (Tracy 2009). It is not yet decisive how video technology will affect the popularity and profit margins of the business tourism industry. Nevertheless, derived from existing evidence we cannot be too sure that this impact will be considerable. Some scholars show doubt over the possible effect of videoconferencing in an array of diffusion from no net effect on the tourism industry to a thirty percent decrease in demand for business travel (Beaverstock et al. 2010), which is in agreement with the bottom line calculated in theory and contemporary best practice (Tracy 2009), such as those reached by Vodafone. Conclusions Empirical research conducted in the 1990s on the possible impacts of video conferencing on business travel envisioned grand cutbacks in the near future. Nevertheless, current studies have reported that the correlation can in fact work in the opposed path, with heightened use of telecommunications attending reinforcements in general travel. This poses an issue over the level to which video conferencing in fact replaces business travel. Several scholars indicate that there is considerable possibility for use of video conferencing to replace business travel as (1) the kinds of interaction where video technology may actually replace a physical episode; (2) information on presently progressing meetings: regardless if they are external or internal, their rate of recurrence and regardless if they are grouped together, such as individuals organising a number of conferences for a single trip; (3) the kinds of people and organisation that may most willingly employ video conferencing. For instance, are marginalised group, such as ethnic groups, travelling quite often and would these people gain from savings in travel? Or on the contrary, is most of business travel made up by people taking frequent trips a year, which are business-class travels? (4) Video conferencing is broadly believed to lessen stress and undue travelling time, specifically for regular internal conferences; and (5) cost and technical requirements have mainly been dealt with. References Beaverstock, J.V., Derudder, B., Faulconbridge, J., Witlox, F. & Beaverstock, J., 2010. International Business Travel in the Global Economy. London: Ashgate. Collis, R., 2002. Survivor’s Guide to Business Travel. London: Kogan Page. Davidson, R. & Cope, B., 2003. Business travel: conferences, incentive travel, exhibitions, corporate hospitality and corporate travel. New York: Prentice Hall. King, R., 2009. Tight Travel Budgets Spark Interest in Videoconferencing. Bloomberg Business Week, 1+ Poole, J., 1996. Sony Readies Video Conferencing System for Desktops. InfoWorld, p. 78+ Tracy, B., 2009. Reinvention: How to Make the Rest of Your Life the Best of Your Life. New York: AMACOM. Read More