Business Travel in the Digital Age: Digital Spaces vs. Zoom

Business travel costs are soaring in a post-pandemic world, with companies facing a crisis of rising expenses. According to the Handelsblatt, corporate travel expenses for German companies have surged by 19% from 2019 to 2023, far outpacing general inflation rates. This rapid increase is challenging companies who are struggling to regain stability in an already volatile economic landscape.

Rising Costs and Company Responses

The cost hikes are not uniform. While travel cost within Europe has increased by a modest 6%, trips to key non-European destinations, like North America, have jumped by a third since 2019. A North American business trip now costs over €1700 euros, a nearly 50% increase. Many companies are responding by freezing travel budgets at 2019 levels or imposing outright travel bans. This trend, along with the pandemic’s impact, has led to a shift toward virtual meetings.

Moreover, according to the stats sourced from the article “European Business Travel Spending is Forecast to Reach 450 Billion USD by 2027” and our pricing, €1,000 spent on a single business trip for one person is roughly equivalent to the annual cost of providing interactive live meetings for up to four employees on Unyted’s platform. Since travel expenses can account for up to 10% of a company’s revenue, particularly for the 42% of employees who travel frequently, shifting meetings online could be a cost-effective alternative. Unyted can transform the expense of an average business trip into a full year of engaging virtual meetings for 1-4 employees. Let us show you how.

Zoom vs. Digital Spaces

While platforms like Zoom became essential for remote communication during the pandemic, they lack the immersive experience of in-person interactions. This is where digital spaces come in. Unlike Zoom’s 2D interface, virtual worlds provide a 3D virtual reality environment, allowing users to interact through avatars in simulated spaces. This offers a more lifelike meeting experience and could be a game-changer for businesses seeking to maintain human connections while controlling costs.

In digital spaces, business interactions can feel more like in-person meetings. Avatars allow users to engage in a range of interactive activities, from shaking hands to collaborating on projects. This additional level of interactivity could make it a superior alternative for building business relationships and fostering collaboration.

Digital environments can help companies save on business travel expenses by offering a virtual alternative to physical travel, reducing costs associated with transportation and accommodation. This approach also contributes to sustainability by lowering the need for long-haul travel, thus reducing carbon emissions. Virtual meetings are also more accessible to a broader audience, promoting inclusivity.

Given the complexities surrounding business travel, companies must decide whether to continue cutting back on travel or embrace virtual communication through platforms like the Metaverse. It has the potential to offer a cost-effective, immersive alternative to traditional business travel and video platforms, redefining the business travel and remote work landscapes. The decisions companies make now will shape the future of business interactions. Book a demo here to see how our solutions can lead the way.