In the past, the physical handshake was all-important. The true gold standard of collaboration and deal-making, it was how business was properly done. And even now, in an age of incredible remote tech, certain people still prefer to meet in person rather than over a Teams call. And it’s true: Some things will always be better face-to-face.
Nonetheless, these days routine business travel is becoming increasingly difficult to justify. Simply put, it's just too expensive and unsustainable. Rising travel costs, tighter budgets, and growing sustainability demands are leading companies worldwide to rethink how they operate. Let’s explore this context in a bit more detail.
The rising cost of travel
Probably the key factor in reduced business travel is increased travel costs. Back in 2022, we were told that the era of cheap air travel was over, because of the ongoing war in Ukraine and its effect on oil prices.
Since then, this trend has continued. Driven by higher jet fuel prices, air travel prices recently increased by 25% in the US, the largest jump since this information began being tracked. Understandably, this has caused many businesses to swap the in-person meeting for an online call.
Tightening budgets
According to the 2024 UN Trade and Development Report, global growth is projected to stagnate at 2.7% in 2025—down from the pre-pandemic average of 3.0% and well below the 4.4% average seen before the financial crisis.
In this economic context, companies are understandably trying to do more with less. Although business travel has started to pick up again since the pandemic, high travel costs still lead companies to limit travel in favor of more efficient and cost-effective means of communication.
Sustainability targets
Investors and customers are increasingly pressuring businesses to introduce measures to address climate change. This involves reporting on non-financial ESG metrics and including these metrics in compensation plans.
Once compensation is tied to sustainability goals, it follows that managers will try to reduce their carbon footprint. And reducing or even eliminating travel costs is an ideal first step in this.
What role does remote connectivity play in reducing travel?
Today, remote technology is a key tool for supporting remote work, providing crucial customer support, and simplifying maintenance across devices, machinery, and industrial equipment.
As organizations navigate the complexities of a globally dispersed customer base, the ability to efficiently troubleshoot and maintain devices and machines remotely enhances productivity. It also brings huge security benefits, driving both operational resilience and customer satisfaction.