IS THIS THE COMING OF AGE FOR VIDEOCONFERENCING?

Has the time finally come, I ask myself, for videoconferencing to go mainstream?

Videoconferencing, or VC, has been talked about for many, many years as a cost effective alternative to intercompany travel. Not only does it save money it also saves on time. Yet it’s never fully caught on. Why? Well predominantly because of cost – VC and telepresence kit has just been too expensive for many companies to consider as a viable option. But perhaps also because of the way – and to whom – it’s been marketed.

The good news is things are changing – enough for, in my opinion, the next 12 months to be a potential tipping point for the videoconferencing industry.

The up-front cost of buying in the technology is now significantly reduced and travel technology providers such as Sabre and GlobalVideoconferencing Network have both launched virtual meetings platforms that directly target TMCs.

GVN recently announced the launch of its new online booking platform that allows the direct bookings of virtual meeting rooms. The ability to rent public rooms and book VC facilities on a pay as you go basis may not be new – but where GVN differs from the likes of Whygo (which was launched to make booking public video conferencing facilities around the world simple and easy) or inetwork.com (which provides VOIP networking) is that it enables TMCs and buyers to book through self booking tools (SBTs) and, tying this facility into the distribution channel in the corporate space, is definitely new.

The fact that VC suppliers have woken up to the business potential of talking directly to TMCs and are creating technology that is accessible and relevant to them is a wise move. Given the squeeze on corporate travel budgets over the last few years, many corporates are only too eager to consider cost-saving alternatives intercompany travel.

David Chapple is the event director of The Business Travel Show. You can contact him virtually on Twitter @btshowlondon

SMARTPHONES = SMARTTRAVELLERS

Recent research has shown that smartphones really are a traveller’s best friend and, thanks to recent advancements in technology, organisations are also befriending them more than ever.

Last week, a survey from TripIt, the leading mobile travel organiser from Concur, has shown that travellers find it much easier, and are more comfortable, staying in touch with their partners back home thanks to the variety of technology that’s accessible through their smartphones.

Just 17% of TripIt respondents said they still found it difficult to stay in touch with home when travelling on business. And just 8% continue to find it stressful to say goodbye to their partners. Instead they are finding comfort in their smartphones, which allow them to stay in constant contact whether through regular phone calls, video calls, email, text messages and social networking.

88% of travellers make phone calls to stay in touch with back home, 47% use video calls, 85% texts and 72% email. Despite having the same access to technology, those staying put don’t seem to have embraced technology in quite the same way with 95% sticking to phone calls and just 37% using video calls, 78% texts and 45% email.

I think what’s important about these figures, which, to some degree, seem to state the obvious, is that connected travellers are no doubt happier, less-stressed travellers, which means their productivity and wellbeing will be leaps and bounds ahead of those travellers who are home sick and suffering because of it and companies will save money as a result.

Mobile technology is not only proving its worth for staying in touch at home, but also when travellers are away. Social media tools, in particular, enable travellers to stay in touch with their community of trusted contacts and also enable them to hook up with fellow travellers. These can be wide or niche communities, for example, MaidenVoyage.com for women travelling alone.

The next smartphone technology to make a huge impact on travellers’ lives is undoubtedly NFC (near field communication):  contactless payments. This is increasingly available and soon it won’t feel strange to make payments through a mobile phone with a chip in it instead of using a credit card. It will, for example, automatically do travel expenses, open hotel room doors and start cars.

And for organisations, smartphone technology is also proving to be worth its weight in gold. NFC, for example, has the potential to save money – lots of money – by encouraging traveller compliance. For example, suggesting you take the underground from the hotel instead of a cab (together with the route), or instead of taking a taxi to a favourite bistro, travellers will be directed towards restaurants in the hotel’s vicinity that are within budget.

The smartphone is already a must-have travelling gadget, over the next 12 months it will become the traveller’s companion. The technology to make that happen already exists – it is just a matter of time before it becomes standard.

David Chapple is event director of the Business Travel Show and is already planning his trip to the GBTA Conference in the UK this August using TripIt and will be glued to his smartphone before, during and after his travels.

TO NDC OR NOT TO NDC? THAT REALLY IS THE QUESTION

Not since APD has a three letter acronym caused such a stir in the business travel industry. And those three letters? N, D and C, of course.

New Distribution Capability is a new business model proposed by IATA member airlines that – if approved by the US Department of Transport – will allow greater visibility of the airlines’ products at point of sale. Seats will no longer be distinguishable purely by price and carrier alone. Consumers will be able to compare class, seat type, service levels and ancillary costs, as well, in the same way that hotels are sourced and booked.   

The introduction of greater visibility means that airlines will no longer compete on price and brand awareness, but rather on a more accurate like-for-like product basis. The travel industry understands the need for this change and agrees it is a good thing for the airline industry, the manager and the consumer.

However, the NDC proposition is also stirring up a cloud of controversy in the travel industry. Why? For two reasons. Firstly, IATA has excluded travel managers, travel agencies and trade organisations from strategy meetings. And secondly, because the new technology gives airlines the capability to ask buyers to input demographic passenger profiles pre-search.

All airlines already hold extensive amounts of passenger data, which is used in targeted marketing campaigns, competitive intelligence and to establish the viability of new routes, which is essential for opening up emerging markets.

But none asks for that information pre-search. Doing this means the airlines could – note, not would – discriminate based on the pre-search data, raise prices artificially and charge higher prices to those travellers they feel are able to pay more: corporates. And in a time when managing costs is still very high on the travel managers’ agenda, the possibility of paying more – and artificially so – is understandably grating.

By David Chapple

David Chapple is event director of the Business Travel Show, which takes place each February in London. Find out more at www.businesstravelshow.com. Comment on this blog below, or contact David on Twitter @btshowlondon 

DEAR PATRICK MCLOUGHLIN, PLEASE PUT PARTY POLITICS TO ONE SIDE FOR THE SAKE OF UK PLC

In the first cabinet reshuffle since the Coalition Government took power, anti-third runway Transport Secretary Justine Greening has been ousted and Patrick McLoughlin has taken her place. Not much is known about Mr McLoughlin transport-wise, apart from the fact he has a fear of flying and he represents the most landlocked constituency in the UK.

 

No doubt, airport expansion, and the issue of a third runway at Heathrow in particular, will be top of his agenda this morning. Speaking on behalf of the business travel industry – if I may – I urge Mr McLoughlin to use this opportunity to put party politics to one side, to not succumb to the NIMBYs (not in my backyards) who will fight against expansion at whichever airport affects them most, and to focus solely on what’s good for UK PLC.

As the Government continues to dither and decisions are delayed, cities like Amsterdam, Frankfurt and Paris – all with world-class, well-connected hubs – continue to attract global corporations and the UK continues to slide down the scale as a centre of global commerce. 

Our lack of airport capacity is also preventing us from introducing new routes to the BRIC countries, which is essential to fuel economic growth long term.

In my opinion, that means putting a plan in place to create a long term transport strategy that will support the UK as a centre for business and fuel its economy over the next 20-30 years. And in the short-medium term look to airports such as Gatwick, Luton and Stansted to ease the capacity issues at Heathrow that everyone is getting so blindsided by.

As event director of the Business Travel Show, I’d like to extend an invitation to Mr McLoughlin to address the business travel industry at our event in London next February where he will meet a very eager audience keen to question him about the issues affecting our business including airport expansion, APD, green taxes, and high speed rail and franchises.

David Chapple, event director Business Travel Show, david@businesstravelshow.com