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COVERSTORY

Off-Sites Are Down, But Not Out

Companies will continue to monitor expenses closely in 2009, but “business travel” isn’t an oxymoron yet

"Did you know," asked the excited marketer of virtual meeting software and services who called me recently, "that we can create a hologram of a CEO so it actually looks like he's standing on the stage - at multiple locations, if necessary - even though he's back at corporate HQ?"

I didn't know that.

And if you use a prepared script, the 3-D CEO can answer questions live from six different audiences scattered across the country if the question is asked simultaneously at each location.

Scripted questions don't sound like a great way to engage a group of employees that have a chance to meet with the CEO, virtually or not. But there's no question that the increased cost of travel, coupled with the sinking economy, has put a crimp in companies' off-site meetings and incentive travel plans.

A survey of corporate incentive travel buyers and suppliers by The Incentive Research Foundation (IRF) showed that administrators are reducing their incentive travel spending while trying not to detract from participants' experience. The most frequently mentioned spending reductions:

"While it's predictable that some companies will cut budgets in a down economy, the result can be degradation in program effectiveness and results," says Bob Dawson, Research Chair of the IRF. "Incentive users would be well-served to focus on increasing program effectiveness and ROI through improving incentive program value-added and efficiency."

Tight Times Demand Creative Solutions

Small and medium-sized businesses are expected to continue the trend of combining incentive travel programs with sales meetings for new product introductions or strategic planning. And some companies are rewarding employees for smart budgeting decisions.

Meanwhile, the videoconferencing industry, which never really lived up to the hype it received at the dawn of the Internet age as a replacement for business travel, is making a push in these tight economic times. More than half (57 percent) of the respondents to a survey of business travel planners by the National Business Travel Association reported an increase in video teleconferencing.

As with the downturn in business travel following 9/11, the current slowdown will be temporary. What's more, there are always times when meeting in person is a better business decision, no matter the cost. Whether building a relationship with your sales team or an outside customer, face-to-face contact increases loyalty.

See also in "What's Next..."

Off-Sites Are Down, But Not Out

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