The new order of business travel - According to the World Economic Forum (WEF)
- Business travel was one of the biggest casualties of the pandemic, and remote and hybrid work are bringing its future into question.
- Travel remains an important way for people to connect, but aviation accounts for 2-3% of global emissions.
- Travelling economy class has half the CO2 footprint of business class, because passengers take up half the space.
- Sustainable aviation fuel made from 100% renewable waste and residue raw materials, such as used cooking oil, is another option for reducing aviation emissions.
Among many casualties of the pandemic, business travel was one of the biggest. In 2020, the total amount of business travel expenses dropped 52%, according to McKinsey. Today, as we are learning to live with the Coronavirus and what feels like normality largely resuming, the dilemma around what that means for travel and face-to-face meetings is real.
It is clear that the old ways of working are no more – and that includes business travel. Remote and hybrid work are now the new normal, leaving business travel in an interesting position. “Business travel has reduced a lot,” says Katharina Riederer, co-founder of eco.mio, a consultancy that helps businesses choose sustainable travel solutions. “And we have these new opportunities: we’re meeting on Zoom.”
It’s a significant shift that may have come from expediency, rather than a desire to save the environment - but can the sustainability agenda make the need and want to think twice about travel last? From the necessity brought on by lockdowns we now have far better and widely adopted alternatives to choose from to help us do business remotely instead of making the trip.
It seems however, that those new opportunities are not always being taken up - or at least, cannot fully replace business travel. “In the new normal, travel remains an important way we connect, but aviation accounts for two to three percent of global emissions - and the number of flights are expected to grow significantly,” says Susanne Bouma, Head of Partnerships and Programs, Renewable Aviation at Neste, the world’s leading producer of sustainable aviation fuel (SAF) made from 100% renewable waste and residue raw materials, such as used cooking oil.
To meet or not to meet
Riederer admits that considering whether or not to make a trip is a business-driven decision. “Oftentimes, you can’t really control how much travel is in the company,” she says. “Take consulting: some customers really want you to be there.”
It’s also often cultural. “Two years ago, it was felt people would never need to meet again,” says Clive Wratten, chief executive of the British Travel Association. “But conversely, the reverse happened culturally: in Asia, it was seen as very important to get back out and meet people in the room, so you can understand all the nuances that come with doing business in a totally different culture.”
Yet if you can choose to not take the trip, what should you consider when deciding whether or not to book a flight, hop on a train, or rent a car to make your next meeting?
“The big consultancy firms and finance firms are very much getting back out and seeing customers, making sure they're in front of them,” says Wratten. “And that is really important. But do we really need to go and have an internal meeting in New York, where we meet our colleagues?”
For important meetings where you’re trying to close a key business deal, where it’s important to see the whites in your counterpart’s eyes, that flight may be necessary. But when you’re already well-established with partners, any meetings could well be via a video call.
What is the most sustainable way of traveling?
As well as questioning what the purpose of any trip is, it’s also worth considering what methods of transport are available to you.
Riederer points to Germany, where many people will choose to travel on trains rather than fly because of great connectivity. Another country that does well when it comes to internal land connections is Japan, whose high-speed train system means that the time taken for trips is often equal to or less than a corresponding flight.
“You can’t do that in the US,” Riederer says, conceding that this is not going to be an option for everyone. Helpfully, sites like Chronotrains tell would-be travelers how far they can travel from each train station across Europe in five hours – which is roughly the amount of time it’d take even the most seasoned business traveler to traverse check-in queues, security lines, and travel to and from airports even on the shortest of short-haul flights.