Davidson and Cope (2003) say that because business travellers usually can not choose date of their travel or destination they need flexibility in order to make it possible to book the flight, cancel and change. Furthermore website usually does not provide advice on, for instance visa requirements what is possible when booking with travel agents. There is also no negotiating with an online booking site and risk with control of bookings to make sure that it has been made according to company travel policy. According to Mintel (2000) some companies came up with a solution, as American Express for example, created its own online booking system called AXI Travel, allowing business travellers to arrange trip in conformity with company policy with savings of up to 20%. Same source says that part of travel policy of some companies is flying with low-cost airlines. The largest online travel agency in Europe and the first in the UK offering interactive booking services ebookers.com negotiated fares from 115 airlines and 14,000 hotels around the world allowing significant savings leading to rapid increase of business travel market over the Internet. Business travel agencies developed Intranets with travel itineraries and GDS companies, such as Corporate World give travellers a chance to book online with company’s selected suppliers following its travel policy.
Because of some skills limitations in usage the Internet only 11% of companies did book air travel that way in 1999.
However according to a survey carried out by Mintel in September 2006 92% of respondents said that they were comfortable booking their trip via the Internet and 47% of companies book direct. That shows a significant increase of 36% within seven years. Booking through the travel agency was on the last position. The survey has been based on 685 adult Internet users aged 18+ who had taken a business trip in the past 12 months. The results are the following:
According to Davidson and Cope (2003) some conference centres are equipped with high-performance simultaneous interpreting systems, sound reinforcement systems, stylish lighting system or projection facilities. E-mail and the Internet are helpful tools when organising meetings as well as to market these events enabling organisers to get in direct touch with delegates through e-mail. The World Wide Web is the ideal channel for promotion of destinations. Organisers have got an opportunity to set up website for the event and place information about the programme, venue or links to other sources of information, such as local weather or visa requirements. Website enables to register for the event and allows organisers to keep delegates up to date. Creation of the Internet-based registration systems, for instance or allows meeting organisers to manage delegate registration in easy and convenient way as well as draft participation fees, registration spreadsheet. Some websites such as offer search engines to find a venue in any country in the world with comprehensive information, allowing checking availability and rates. Technology enables shorter planning lead time, allowing signing the contract within one day.
Collis (2000:68) says that “videoconferencing is less about saving money on travel and more about global teamworking. It enables people to be brought in to meetings who might not normally attended if they had to travel”.
In 1994 survey carried out by Industry Direct Research (IDR) revealed that 73% of respondents claimed that videoconferencing was the most suitable technology to replace face-to-face meetings (Haver1994). Mintel’s (2006) research shows that internet conferencing threatens the need for travel as using telephone or Internet conference facilities cut travel costs. In the US customers spent 27.3 trillion minutes in telephone conference worldwide in 2005, twice as much as in 2002. Business travellers have larger demands on technology because they are increasingly dependent on the Internet. MCG (1999) states that “video-conferencing replaces some small conferences of few people in the short term, but it does not replace any longer-term meetings” meaning that it is no threat to meetings and conferences sector. However Mintel (2005) estimates that videoconferencing could replace travel by 20% before 2007 saving up to $3000 per year.
Free videoconferencing was introduced in 2005 by Skype- a provider of free internet calls with 53 million users. There is a security issue in using videoconferencing to protect it from “hackers”. For that reason there was implemented encryption as well as embedded security. Disadvantage of videoconferencing is difficulty in measurement of how many people take part as not all of them register. However the participation is higher than in traditional conference. It is pleasure for delegates to attend the event and afterwards enjoy social programme (Davidson and Cope 2003).
Davidson and Rogers (2006) predict that the RF tags (radio frequency) and RFID (radio frequency identification) will have an enormous effect on venues in meeting industry as it will be much quicker than used nowadays barcode scanners. In the future scanners at the entrances to venues will authenticate whether the person is allowed to access certain rooms. When using internet cafes delegates will not have to enter their names in order to log in to the computer as they will be identified from their badges. It will also enable to track VIP guests and let staff to prepare to help them. Same source says that venues make the following new technology improvements from these most common to the least respectively: website enhancements, wireless technologies, new A/V equipment, online booking and planning system, online registration, teleconferencing and virtual shows.
UK Market for Videoconferencing, 2001-2005
(£ Million)
Source: MBD and trade estimates (IN Mintel Report)
According to Davidson and Cope (2003) advances in technology appear to be a real opportunity in order to improve incentive travel in terms of participation, flow of information and programme management. The Internet is helpful for the agencies in finding the venues, checking its location, rates, availability as well as room capacities. They are able to place information for the participants on the website reducing costs of printed brochures. Participants have got an opportunity to register online, access incentive programme and check details of competition. It is used as a motivational tool as participants can view, for instance pictures of the destination. However it depends on the skills and knowledge of using it meaning that still a lot depends on face-to face contact.
Mintel Report (2000) found that e-commerce is an important factor in promotions and incentive marketplace as companies are able to find incentives on the supplier’s websites. It also motivates participants as they are able to choose the reward. Motivation specialist Maritz introduced WARP (the Web Award Redemption Programme) which combines e-commerce, new media technologies and incentives and gives participants a chance to order their rewards from a price-in-points system of 50,000 items in a virtual catalogues. That is done through company's "WARP" site. New generation WAP phones enable participants to check their points via WAP-compatible mobile phones.
Exhibition sector technology brings many opportunities as it enables exhibitors to expand the duration of exhibition by setting up the website, resulting in that it may last all year and anyone in any part of the world can use it. Exhibitors are able to place design of the hall as well as sell stand space. Visitors can view map of the local area making it easier to get to the particular venue and make an advance appointment with exhibitors they would like to talk to. Visitors of virtual shows have got opportunity to make a contact with companies before the start of the event. An example of usage of such a tool is Appointment Scheduler used in Meetings&Incentive Travel show at Excel in 2001. Online registration procedure is much faster and easier than traditional one and website allows organisers to update the information constantly. There are links on the website to other useful sources of information. Through e-mail exhibitors remain in touch with visitors. However there is a limitation of using online marketing and registration which is ability of visitors to use it and access to the internet. ICT is increasingly being used to sell products and services online.
Davidson and Cope (2003) say that there has been significant increase of people searching the Internet in order to gain information about corporate hospitality sector of business travel causing many venues, agencies and event organisers putting their brochures online.
According to the National Corporate Hospitality Survey (2003) for buyers the Internet is an important research tool, saying that it is even the leading source of information in order to find venues and activities and the second valuable source for finding caterer. They also use it in order to download brochures, make direct contact with venues as well as manage bookings with intermediaries. Buyers are though not willing to buy online as they prefer face-to-face contact.
The use of technology is an opportunity rather than threat and it enriches business tourism. The growing popularity and accessibility of the Internet have contributed to facilitating the use of low-cost airlines as well as direct hotel bookings.
Mintel (2000) says that despite increasing number of business travellers able to access the Internet they are still and will be using travel agencies as they offer discounts and additional facilities.
The internet is used as a registration and planning tool but there is no threat of replacing business travel events. People attend exhibitions in order to get in direct contact with exhibitors. Internet is used in connection with traditional methods, it does not replace them. Videoconferencing is not a good alternative to real face to face meetings.
Bibliography.
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Collis R. (2000), The survivor’s Guide to Business Travel, London: Kogan Page
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Davidson R., Cope B. (2003), Business Travel: Conferences, Incentive Travel, Exhibitions, Corporate Hospitality and Corporate Travel, Harlow: Pearson Education
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Davidson R., Rogers T. (2006) Marketing Destinations and Venues for Conferences, Conventions and Business Events, Burlington: Butterworth-Heineman
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Haver P. J. (1994) Videoconferencing and Business Air Travel
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Inkpen G. (1998), Information Technology for Travel and Tourism, 2nd edition, Harlow: Longman
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MCG (1999), Quantifying Offshore Business Tourism, London, British Tourist Authority IN Davidson R. and Cope B. (2003), Business Travel: Conferences, Incentive Travel, Exhibitions, Corporate Hospitality and Corporate Travel, Harlow: Pearson Education
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Mintel Report (2000), Business Travel-Global-September 2000
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Mintel Report (2000), Promotions and Incentives-UK-December 2000
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Minte lReport (2005), Videoconferencing (Industrial Report)-UK-December 2005
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Mintel Report (2006), Business Travel-UK-November 2006
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The National Corporate Hospitality Survey (2003), How will you impress your clients this year?
