The time and money spent for business travel does not always result in a high return. With travel costs edging ever higher, another look at virtual meetings could yield significant savings in time and expenses.

Considering rising travel expenses such as food bills, hotels and car rentals, business travel costs add up quickly for firms. In its survey of 215 travel buyers last fall, the National Business Travel Association (NBTA) determined that 73 percent of respondents expected travel spending to increase 5 percent to 10 percent. The association forecast that overall travel costs would increase about 7 percent in 2008.

“A majority of companies simply have higher travel expenses than they need,” Alisa Jenkins, a business and marketing consultant, tells Microsoft Small Business Center (MSBC). “Companies are . . . expected to spend $200 billion on business travel in the United States alone, part of a steady uptick since 2004,” Caleb Tiller, spokesman for the NBTA, told HometownAnnapolis.com earlier this year.

As such, many companies are reconsidering their budget costs and habits for meetings.

The alternatives to business travel — videoconferencing, Web conferencing, teleconferencing and online collaboration tools — continue to improve with technology advances, says MSBC.

For one, purchasing costs for hardware and software required for virtual meetings continue to fall. Besides installing hardware in-house, businesses can also rent the hardware. According to MSBC, “more than 150 of FedEx Kinko’s stores offer videoconferencing to any location.”

Not only do virtual meeting technologies today boost time-efficiency — less time spent on the commute — and cut down on extended trips and unnecessary travel costs, there are other, larger-scale benefits as well:

• Reduction of traffic congestion;

• Reduction of stress from not having to drive in traffic congestion; and

• Even possible health benefits of being able to eat less fast/snack foods often consumed during business travel.

There are plenty of tools available that can help moderate virtual meetings and share materials. “Choosing the right one for the task isn’t necessarily easy,” according to CIO.com. Managers must ensure they are clear about a meeting’s goals and how information may flow before deciding on the software to use.

Of course, in-person meetings (if done right) remain critical today, too. For instance, experts feel travel is worthwhile for at least the following scenarios:

• Meeting a new client;

• Introducing new people in important roles;

• Trying to close a big sale or make an important deal;

• Delivering a product you must demonstrate;

• Soliciting funds from an investor; and

• Resolving a complex problem or discussing top-secret matters.

And there remain disadvantages to virtual meetings as well.

“Meetings are hard enough to run when the participants are all in the same room, fighting over the last chocolate doughnut,” CIO.com recently pointed out.

Unless there is a visual component to the virtual meeting, lack of face-to-face communication increases chances of miscommunication or misunderstandings.

And we all know technology isn’t flawless. Technical difficulties can hinder communications or work progress during the online meeting, teleconference or videoconference. It is always a smart move to test the technology an hour before the meeting. The moderator should know how to use it.

When deciding if an upcoming meeting should be held face-to-face or if it would be better suited virtually, the primary deciding factor should be which one is crucial for business success.

Earlier: Make Your Meetings Matter

Resources

2008 U.S. Business Travel Overview & Cost Forecast Report
National Business Travel Association, Oct. 17, 2007

Virtual Meetings Cut Travel Costs
by Monte Enbysk
Microsoft.com

Businesses Looking to Cut Travel Expenses
by Katie Arcieri
HometownAnnapolis.com, April 24, 2008

Running an Effective Teleconference or Virtual Meeting
by Esther Schindler
CIO.com, Feb. 15, 2008

How Virtual Offices Work
HowStuffWorks.com: Conferencing

7 Things You Should Know about Virtual Meetings
Educause Learning Initiative, February 2006