The number of business trips in German companies has drastically reduced since the outbreak of the corona pandemic. While the lack of business trips was initially due to the crisis-related contact restrictions, many companies have now recognized the savings potential of digital alternatives. Falling operating expenses are a welcome side effect.
The aha effect in business and other parts of society was huge. Not only was the entire workforce easily able to participate in video conferences without each and every one having to have completed a computer science degree. The realization of how much exchange between colleagues or between customers and suppliers is possible via the computer without the competitiveness of a company suffering significantly as a result was surprising for many.
At the beginning of the year, almost 90 percent of all companies in Germany had confirmed in a survey by the consulting firm PwC that their travel expenses had fallen by 66 percent since 2019. Savings are also expected for the current year, when travel to many parts of the world will again be possible without any problems. Not as massive, but still more than 30 percent.
The cost savings are just too tempting
What started out as a Corona necessity and was seen as a passing phenomenon is in fact becoming a trend. More than 60 percent of companies expect that domestic travel will become largely superfluous in the long term and their assessment is probably based on experiences in their own environment. Every second company even believes that international travel will become less important.
The cost savings is just too tempting, especially since it pays off twice over. This not only reduces expenses for flights, trains and hotels. There are also fewer overtime hours or unproductive travel days. Employees no longer have to be paid for the time it takes to get from A to B, but can invest more time in the content.
Less travel also means fewer CO₂ emissions. This is not only good for the environment and helps to reduce global warming, but also becomes a valuable argument in a company’s public image. A growing number of consumers have long been taking a closer look at which companies operate more sustainably. Those who can demonstrably reduce their emissions because the workforce travels less can also communicate this to customers aggressively.
“There are more and more companies that really care about a lower CO₂ footprint. There are different approaches depending on the industry. When it comes to travel, however, all companies have sufficient opportunities to save effectively,” says Bahar Cat-Krause, founder of the Cologne-based sustainability consultancy Bck2planet.
It is a truism that the most environmentally friendly business trip is always the one that is never taken in the first place. But it’s not that simple after all. The German Travel Association (DRV) recently presented new figures. In a survey, 39 percent of the companies surveyed stated that they would not want to do without personal contact at the first meeting.
That is understandable. Psychologists emphasize the importance of small gestures such as a handshake, a direct look in the eye, a smile or two or three greetings in building a relationship of trust between customers and providers. Especially at trade fairs, congresses and events, personal contacts can be made and business can be initiated that might not otherwise come about in the first place. And now numerous events around the world are attracting visitors again.
From October 20th to 23rd, the first Paris fair of Art Basel with 156 galleries from 30 countries will start in the Grand Palais Éphémère. At the end of October, Beautyworld celebrates its comeback in Dubai. The current hot spot for the oil and gas industry comes together at Adipec in Abu Dhabi. At the Flibs in Fort Lauderdale (Florida) the latest boats and ships are shown at the marinas. And from October 24th to 30th, Bauma, the world’s largest construction trade fair, will take place in Munich. By the end of the year, almost 95 trade fairs are planned in Germany alone, including the K plastics fair, Medica in Düsseldorf, the Frankfurt Book Fair and Nuremberg’s Chillventa with the latest heat pump technology.
Those who value sustainability should plan a business trip well
The exhibitors are mostly back, according to the Auma trade fair association. But the pre-corona level has not yet been reached. The average number of visitors is around 55 percent compared to the years before the pandemic. The reason for this is also corona restrictions in Germany, for example in the recognition of foreign corona vaccinations, but also exit and entry restrictions in Asian countries. There is also sometimes a problem in issuing visas to foreign exhibitors and trade visitors in a timely manner.
Especially the visitors and exhibitors from Asia are of enormous importance for the local market. With a more stable basis of trust, personal meetings can be reduced. However, giving it up entirely is not advisable. The contacts are too valuable for that. It is essential to visit the customer personally at regular intervals.
In view of rising energy prices, increasing inflation and newly debated corona restrictions in the winter half-year, however, many companies are likely to carefully consider which events they will take part in. There is still a lot of potential for reducing emissions. 56 percent of the companies surveyed with more than 250 employees stated that they wanted to pay attention to social and ecological standards when booking, writes the DRV. “The be-all and end-all is intelligent planning of a business trip. Time is therefore an important component when it comes to traveling in a more environmentally friendly way. The shorter the booking and organization is made, the less likely it is that you will be able to exploit the entire savings potential,” says Cat- frill.
The longer the time horizon, the higher the chances of finding synergies from necessary business trips. Can appointments be linked together or taken care of by employees who are out and about in the area anyway? Can traffic jam times and thus emissions be reduced when driving by car if you choose different travel times that can be agreed with the business partner?
Companies that are serious about sustainability can formulate their own standards. For example, those that require trains to travel within a certain kilometer radius or categorically forbid car journeys if the time saved does not exceed a certain percentage of the travel time by train.
Cat-Krause sees both the large corporations, because of their great social responsibility, as well as the opportunities for medium-sized companies to further reduce their emissions on business trips: “Sooner or later, large companies will have to position themselves sustainably anyway, because the regulations will inevitably lead to it will come to them. The small ones, on the other hand, have to be aware of how important their share is. I still see room for considerable improvement there.”