Status: 01.10.2021 12:52 p.m.
By avoiding many business trips, German companies saved at least eleven billion euros in the past year. This is the result of a study by the Institut der Deutschen Wirtschaft.
According to a new study by the Institut der Deutschen Wirtschaft (IW), companies saved at least around eleven billion euros last year by foregoing many business trips due to the pandemic. “These estimated savings should be understood as a lower limit. It is likely that companies have actually saved significantly more,” is the assessment of IW author Barbara Engels.
Because of the corona pandemic, many German companies made significantly fewer business trips in 2020. The costs of the companies fell significantly: “While companies still spent 55.3 billion euros on business trips in 2019, it was only 10.1 billion euros in the pandemic year of 2020”. This emerges from the short report on the study that has now been published.
Switching to digital conferences costs
The authors state, however, that the difference of 45.2 billion euros cannot be fully interpreted as a saving, since the companies also incurred high costs due to the omission of business trips – for example “if necessary business trips could not take place”. The cancellation of business trips was ultimately also detrimental to business for many companies, for example when new business transactions were not concluded because of the canceled business trips. In addition, “license fees for online tools” and “technical equipment for employees” had to be paid due to increased use of online services.
The study’s calculations are based on 17 surveys that the Association of German Travel Management (VDR) carried out among representative selected companies between September 2020 and August 2021 on business trips and costs. According to the study, a significant part of the companies stated that more business trips are currently not necessary again. In 2020, 38.3 percent of those questioned answered accordingly, in 2021 just under a quarter of the companies. It can be assumed that this part of the companies is satisfied with the reduced number of business trips, explained the researchers.
If these results are offset against the difference in business travel expenses, the study shows real savings in business travel expenses of 17.3 billion euros in 2020. In 2021, companies saved expenses of 11.2 billion euros.
Fewer business trips in the future too
According to the study, most companies have recognized that business travel is a “large, expensive item in the corporate bill” with many opportunities for savings. “It is to be expected that many companies will use the” compulsory break “during business trips as an opportunity to examine the necessity of business trips more closely. Business trips are expensive – and not always critical to success,” believes Barbara Engels.
In the future, too, “many business trips could be replaced by virtual meetings and conferences,” it continues. The authors expect that the pre-crisis level of 2019 will no longer be reached. Because: “Arrival and departure to meetings often take place during working hours, and many employees are not as productive during this time as if they were working at their desks until the last minute before dialing into the virtual meeting,” says Angel.