Annette Rocholl
Business Travel Management Strategies
Ways to establish an efficient business travel management program and successfully
react to future trends
ISBN: 978-3-8428-4200-7
Herstellung: Diplomica® Verlag GmbH, Hamburg, 2012
Zugl. Rheinische Fachhochschule Köln, Köln, Deutschland, MA-Thesis / Master, 2009
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© Diplomica Verlag GmbH
http://www.diplomica.de, Hamburg 201
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1.1 Motivation 3
1.2 Definitions 5
1.2.1 Business Travel
5
1.2.2 Program and strategy
5
1.3 Scope 6
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2.1 Business travel from the beginning till today
9
2.1.1 Reasons for business trips and their return on invest
10
2.1.2 Interpersonal aspects
12
2.1.2.1 Communication models ... 13
2.1.2.2 Trust and relationship in business ... 16
2.2 Alternatives to travelling
21
2.2.1 Internet 21
2.2.2 Email 21
2.2.3 Telefone 21
2.2.4 Virtual conferencing
22
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3.1 Market Players
23
3.1.1 Business travel customers
24
3.1.2 Travel Management Companies
25
3.1.3 Airlines 30
3.1.4 Car rental companies
32
3.1.5 Rail 33
3.1.6 Hotels 34
3.1.7 Global Distribution Systems
36
3.1.8 Credit card institutes
38
3.1.8.1 The business travel account card ... 39
3.1.8.2 The individual traveller expense cards ... 39
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4.1.1 History of business travel management
41
-IV-
4.1.2 Definition Business Travel Management
42
4.1.3 Tasks of the travel management
43
4.1.4 Cost structure of corporate travel
44
4.2 The Travel booking process
45
4.3 Increase efficiency and save cost
48
4.3.1 Analysing the company's current situation
49
4.3.2 The travel policy
50
4.3.2.1 Creation of a travel policy ... 50
4.3.2.2 Implementation of the policy ... 57
4.3.3 Contracts and rate agreements
60
4.3.3.1 Airlines... 62
4.3.3.2 Hotels ... 63
4.3.3.3 Car rental... 66
4.3.3.4 Rail ... 67
4.3.3.5 TMC... 68
4.3.4 Case study: Improvement of business travel process
73
4.3.4.1 Current process ... 74
4.3.4.2 Improved process without the aid of software... 75
4.3.4.3 Potentials to utilize software ... 78
4.3.5 Measures and Ratios for an efficient BTM Programs
84
4.3.5.1 Challenges... 84
4.3.5.2 KPI Classification... 85
4.3.5.3 Build up a KPI system ... 86
4.4 Risk Management on business travel
88
4.4.1 Risk identification
89
4.4.1.1 Potential company risks... 89
4.4.1.2 Potential risks to the traveller... 90
4.4.2 Risk evaluation
90
4.4.3 Risk management
92
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5.1 Politics and World economy
93
5.1.1 Global economy
93
-V-
5.1.2 Political activities
94
5.1.3 Demographic factors
95
5.2 Environmental factors
96
5.3 Business travel related technological developments
97
5.3.1 Technological developments of transport
97
5.3.2 Videoconferencing 100
5.4 Travelling and Travel management in future
100
5HVXPH
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7.1 Contents of a travel policy
104
7.2 Hotel RFQ Template
106
7.3 TMC RFQ Template
107
7.4 Air tarriffs
108
7.5 Selection of european booking tools
109
5HJLVWHU RI DWWDFKHPHQWV
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%LEOLRJUDSK\
-1-
*ORVVDU\
BTM Business
Travel
Management
GDS
Global Distribution System
OBT
Online booking tool
SBT Self
Booking
tool
T&E Travel
and
Expenses
TMC Travel
Management
Company
VDR
Verein deutsches Reisemangement
CRS
Computerized reservation system
BTA Business
Travel
Account
RFQ
Request for quotation
WTO (UNWTO)
World tourism organisation
KPI
Key performance indicator
-2-
,QWURGXFWLRQ
During a rail or airplane trip on an early midweek's morning men in suits work-
ing on their laptops or reading the latest newspaper are a common scene. This
might lead to the assumption that business travellers are important customers
to the tourism and travel industry and companies spend large sums on the trips
of their employees.
Indeed this impression can be proven right. Such 30-40% of all travel in Ger-
many is business driven. In average companies spent 3,9% up to 5% of their
yearly indirect cost on business travel.
1
In a globalized market business travel is important and necessary for compa-
nies. It is an investment which influences the performance of a company posi-
tively if applied correctly. However as for every investment costs are attached
which need to be validated upon their necessity and their cost-benefit ratio. Fur-
thermore for business travel aspects like security, work time, employee well-
being and other factors must be considered to increase the positive outcome for
the company.
There is a clear requirement for business travel and its management which will
be explained in more detail during this thesis. However still many companies
are not aware of the cost factor of business travel.
2
Even if certain awareness
has been established often still no clear strategy is in place to improve the value
for money and avoid yearly cost increases.
3
To create such a strategy it is nec-
essary to have a good understanding of the travel industry, their relevant play-
ers and the companies travel structure.
1
Vgl. DETTMER, S.19
2
As per a study of the university of applied sciences Bad Honnef, 41% of companies to not
have a travel policy in place, cf. SCHNEIDER, p.55 et seq.
3
Cf. KLESSE and VDR 2008
-3-
0RWLYDWLRQ
Business travel management i.e. the professional organisation of business
travel has just developed during the last 50 years.
4
Globalisation and develop-
ment of transportation caused a quick increase during the last years of the
business travel industry.
5
In 2008 German companies spend 46.6 billion Euros
on business travel.
6
The strategic management of business travel requirements
however is still not common in every company.
7
Though scientific, universal literature about business travel management is lim-
ited. Only a small number of authors give directions upon how to implement a
complete travel management system
8
in a company. In many cases the avail-
able theoretical literature has no practical tips for users. On the other hand there
are many white papers, studies and articles available which are up to date, give
practical tips, however only refer to one aspect of the travel process. This im-
plies that inexperienced persons who are responsible
9
for building up a travel
management system in the company face the issue to obtain comprehensive in-
formation.
10
4
The first Travel managers have been established in bigger companies approximately in 1968,
Cf. JANKINS, Managing Business Travel, p. 3. Today still only 29% of German companies
employ a travel manager, cf. VDR Geschäftsreiseanalyse 2008 p. 12
5
Cf. VDR 2009, p.5
6
Cf. VDR 2009, p.4
7
Cf. VDR 2008, p.12
8
The term "Travel management system" does not necessarily refer to software, but is the basic
strategy for handling the companies' business travel. The implementation of software can be
a helpful addition to avoid administrative costs, however will not substitute a well defined
travel management strategy.
9
In theory a travel management system should be build up by an in the travel industry experi-
enced person. However in practice this often will be taken care of in other departments not
being experts in business travel management, Cf. Chapter 4.1.3- Tasks of the travel man-
agement on page 43
10
These findings have been made while working as a strategic commodity buyer for business
travel for a global company. Being new to the topic at this time it has been much work to get
as deep in the topic as I am today. This gave me the motivation to write this theis for other
people in a similar situation as described above, as I would have been happy to have such
explanations in a comprehensive, practical way.
-4-
This master thesis intends giving a guideline to companies on the effective set
up of a travel management strategy. This will include the description of the
travel market as it is today, as well as the several ways for building up a suc-
cessful travel management strategy. Furthermore this thesis will venture a look
into the future. What will potentially influence business travel and which strate-
gic setups can help to gain the right value for money also in future?
-5-
'HILQLWLRQV
To ensure the right understanding of the used terms in this master thesis the
used terminology requires some explanations and clear definition.
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Business Travel contains both the term business and travel. Business is defined
as "
DQ\ DFWLYLW\ RU HQWHUSULVH HQWHUHG LQWR IRU SURILW³
11
. Travel is defined as ,,
WRG
PDNH D MRXUQH\ XVXDOO\ RYHU D ORQJ GLVWDQFH,,
12
. As a synonym for business
travel the term corporate travel can be used.
Accordingly business travel can be defined as any longer journey, with the pur-
pose of an activity entered into for profit.
13
This means, all travel for meetings,
negotiations, exhibits and trade shows, trainings, congress, conventions and in-
centive travel are included in the term business travel.
In the Gabler's business dictionary business trips are defined as: "Business trips
are occupational changes of locations apart from the usual working location or
residence of the traveller."
¡
3URJUDP DQG VWUDWHJ\
Strategy is "
D SODQ RU SROLF\ WR DFKLHYH VRPHWKLQJ´. The term program is defined
as
ÄD SODQ RI DFWLRQV RU HYHQWV³
£
. Therefore both terms cover the planning of
actions. Planning always means to set up actions in advance. Thus this thesis
will give advice on structured actions to efficiently set up the corporate travel in
companies. As different companies have different requirements, not all aspects
of possible programs or strategies will be covered, however best practices,
ideas and advises will be given and a business travel program can be based on.
11
Cf. BUSINESS
12
Cf.
75$9(/
13
Cf. DETTMER, p. 16
14
Cf. GESCHÄFTSREISE
15
Cf. PROGRAMM
-6-
6FRSH
The first scope of this thesis is to prepare the reader to the environment a busi-
ness travel management strategy is set up in. This includes the condition for
business travel, the historical background of business travel and business travel
management and a presentation of those market players which are relevant in
the context of business travel management.
The main scope of this thesis is the description on the successful development
of a business travel management strategy to improve efficiency of business
travel. This includes the development of a travel policy, the setup of contracts
and rate agreements, process improvement based on a case study as well as
setting up a KPI and risk management system. A conceptual description of the
business travel process will set the frame for this purpose. The recommenda-
tions made for setting up i.e. improving a program are based on this generally
assumed process. The recommended tools and methods are based on certain
studies as well as on experiences made.
The last part of this thesis will picture potential future scenarios business travel
will be affected by in future. Based on this possible ways to react with a travel
program on these trends are shown.
The following graphic shows the structure of this thesis and gives an overview
of the above described topics and their correlation.
)LJXUH 2YHUYLHZ RI WRSLFV
-7-
Out of scope are the following topics:
x Explicit strategies regarding MICE (Meeting, Incentive, Congress, Event)
will be excluded from the recommendations for setting up a BTM strat-
egy. As MICE is an interdisciplinary topic covering more than the pure
business travel, the recommended methods and tools can positively in-
fluence spend on MICE, however a full strategy to handle MICE will blast
the scope of this thesis.
x National law on travel expense handling As this thesis is a guideline to
companies, which might operate in several different countries the investi-
gation and comparison of several international or even European laws
would extend the scope unnecessarily.
x Cultural impacts on business travel This topic is wide ranged from the
different cultures influencing the importance of a face-to-face meeting as
well as the impact different cultures have on the traveller which might
need to be prepared through a travel program to these experiences. The
proper workup would extend this thesis.
x The classical business trip of sales people serving a national region, us-
ing their own company car and do return to their home daily. Even for
these trips costs occur, however a large amount of this costs occur by the
company car, which is rather served by a fleet management strategy than
by a business travel program
16
.
x The trends and development of BTM in Asian countries. As Asian coun-
tries are relatively new to worldwide trade, the BTM is just developing
why documentation and studies are quite poor. However on the other
hand programs for Europe and the US are also likely to work in other
countries, when adapting some changes. Thus the travel to Asian coun-
tries is included and worldwide statistics in the following will include Asian
16
Generally it is possible to include a fleet management strategy into a business travel strategy,
often comprised under the term mobility management. However this would extend this thesis
to a unwanted extend.
-8-
countries as well. However the management of travel out of Asian coun-
tries is excluded.
To ensure the consistency of data worldwide data is used wherever possible.
Where these data is not available, European or German data and figures will be
used.
-9-
7KH UHTXLUHPHQW IRU WUDYHOOLQJ LQ FRPSDQLHV
Trade and interaction with other companies makes business travel necessary.
In the following the development of business trips is shown and the reasons for
business travel are explained. This will include the different reasons companies
send their employees on a trip as well as the general explanation for the re-
quirement for face-to-face meetings. Last alternatives to business travel are de-
scribed and for which occasions those can substitute a business trip.
Especially in a digitalized world, where technique opens possibilities to commu-
nicate beyond telephone, fax or letter one may ask the question needs to be
answered why business travel is an important investment for companies.
%XVLQHVV WUDYHO IURP WKH EHJLQQLQJ WLOO WRGD\
Business travel has a long history however just during the last years it has be-
come as important as it is today through the economic globalization as well as
technological development.
Business travel goes back to ancient times. The term business travel, as ex-
plained in 1.2 Definitions, means travelling with the intent to do business. Al-
ready merchants were travelling for mercantile expeditions to other countries
with intending to do business.
17
From the Romans it has been proven, that they
had a street network of about 70.000km, which has also been used for transpor-
tation of goods. They already imported silk and spices from Asia, mainly China
and exported goods for example olive oil, which lead to a prospering econ-
omy.
18
Those mercantile trips have been the antecedents of business travel.
The true beginning of business travel has just been during the 1950
th
when
technologies like the airplane improved the movement over longer distances
17
Cf. BRENNING
18
Cf. GIEBEL, p.131
-10-
and globalization
19
began
20
. Since business tourism has experienced yearly in-
crease rates. Today there are yearly 120 Million business travellers on the
worldwide roads.
21
Globalization
22
has opened up the need for companies to react not only to na-
tional market but also to international market needs. Especially Germany is one
of the heaviest exporting nations and therefore needs to deal with customers all
over the world
23
The only way to have face-to-face contact with customers, suppliers and col-
leagues in other facilities is to travel to the location the business partner is lo-
cated in. Thus in 2008 nearly one third of European managers and executives
spend more then 20 percent of their working time on business trips.
24
However in modern times there are other ways of communication than personal
meetings. Thus the question arises when and for which reasons business travel
is necessary and when alternatives may be more appropriate to chose.
5HDVRQV IRU EXVLQHVV WULSV DQG WKHLU UHWXUQ RQ LQYHVW
Business travel implies an investment in the company. There are several rea-
sons for business travel as shown in Figure 2 below.
19
Business travel is essentially depended upon trade. Thus global trade, through further global-
isation, has supported the requirement for business trips.
20
The technological development in transportation has caused, that today it is economical to
move goods over long distances along the supply chain rather than performing the whole
production process locally.
21
Cf. FREYER, p 24 and WTO: Worldwide numbers of air passenger arrivals 1950-2005
22
The Organisation for Economic Co-operation and Development (OECD) describes the term
globalization as follows : "The term globalisation is generally used to describe an increasing
internationalisation of markets for goods and services, the means of production, financial sys-
tems, competition, corporations, technology and industries. "
23
WTO, World trade developments in 2008
24
EASYNET, p 13
-11-
Congress and Events
Sales meetings
Fairs and exhibition
Visits of affiliates
others
86
'(
)LJXUH 5HDVRQV IRU EXVLQHVV WULSV
¥
¦
The above sales meeting figures for the US market include 22% "work at the
client's office". This indicates that the research base seems to include a high
number of consulting companies, which regularly work at their customer's office.
The German figures do not go into this much detail and have been potentially
researched on different industries. However even the above figures differ
slightly for the two markets the tendency is clearly visible. The main reasons for
business travel are customer visits i.e. sales meetings and congresses.
The research company Oxford economics USA
26
has published a study about
the return on invest (ROI) of business travel. It has been established, that sales
meetings and congresses create the highest ROI compared to trips for a differ-
ent reason. These results of the study indicate the main reason for business
travel: profit maximization:
25
Source: Own figure following DTZ, p.5; OXFORD ECONOMICS US, p. 16
26
The outcomes of this study are based on a survey, which has been conducted between May
4
th
and May 08
th
2009 with 300 executives of companies through the platform LinkedIn.
-12-
Trip type
% of travel budget
27
Return on $1 of invest-
ment
28
Customer meetings
34%
$15-19,99
Conferences (included
in congress and events)
10% $4
5,99
Trade shows (included
in Fairs and exhibitions)
10% $4
5,99
Incentives (included in
congress and events)
5% $4+
All others
42%
N/A
7DEOH 52, RQ EXVLQHVV WUDYHO VRUWHG E\ UHDVRQ IRU WUDYHO
¥
¨
Thus through an investment of 100,000
¼ RQ EXVLQHVV WULSV WR FXVWRPHUV an in-
crease in revenue up to 1.99 million
¼ FDQ EH DFKLHYHG 7KLV VWXG\ LV EDVHG RQ
the US market. For the European market there are no figures available so far.
Therefore a universal statement on the exact ROI of business travel is hard to
issue. For example an employee has an idea during a conference which is im-
plemented years later. This outcome will never be connected with this special
conference. Nevertheless the previous findings indicate
WKDW business travel is
an investment and helps companies to improve their overall performance.
,QWHUSHUVRQDO DVSHFWV
In the previous chapter different occasions for business travel have been de-
scribed and the potential ROI justifies the required exchange with the customer.
27
Average per interviewed companies
28
Median of responses
29
Own table referring OXFORD ECONOMICS US, p. 27
-13-
In the following the requirement for personal meetings will be explained and
when a virtual meeting can substitute a face-to-face conversation.
Anyone will have experienced the gut feeling that we can better work together
with someone we know, than someone we have just spoken on the phone or
have written E-mails with. Analogical - based on a comparable level of qualifica-
tion - we rather work together with a person "talking the same language" then
with someone we don't like personally.
These rather fuzzy descriptions lead to the main reason for business travel,
which is based on how people communicate and the requirement of trust in
business relationships.
&RPPXQLFDWLRQ PRGHOV
Communication derives from the Latin word for message and encompasses the
human requirement for exchanging information. The main parts of a communi-
cation are the decoding, the sending and the encoding of a message.
30
.
A well known communication model has been designed by Friedemann Schulz
von Thun which describes the different purports of a message.
31
This model states that each articulated message is decoded including four mes-
sages and is then encoded as four separate messages again. Those are
30
Cf. KOMMUNIKATION
31
Cf. SCHULZ VON THUN
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¥
The factual level gives information about the dates and facts. The appeal level
gives information about the intention of the message what do I want the re-
ceiver to do. The relationship level of a message often is given through the
phrasing of the message, gestures or mimic. It implies the relationship regard-
ing this topic towards the receiver. Finally with every message the sender re-
veals something about himself and his personality, either explicitly through an
"I- message" or implicitly.
The decoding takes place based on the same pattern however the decoding
not necessarily is correct but can differ from the intended messages.
33
This
means communication often is characterized by misunderstandings.
Furthermore communication is verbal and to large amount non-verbal. Non-
verbal communication means everything beside the spoken word. As per a
study by Albert Mehrabian from 1967 the non-verbal part of communication
dominates our daily conversations.
32
Cf. SCHULZ VON THUN
33
Cf. SCHULZ VON THUN
-15-
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1
Body language
Tone of voice
Content
)LJXUH &RPPXQLFDWLRQ PRGHO E\ 0HKUDELDQ
Thus, 55% of the full spectrum of communication is determined by postures,
gestures, eye contact and general body language, 38% by the tone of voice and
only 7% by the content.
34
This simple formula leads to the importance of business travel and its support to
the comprehension between two parties. When communicating through email
only 7% of the meaning can be transferred. Through telephone at least 45% of
the content can be transferred. With the means of video conferencing the im-
pact of transferred communication content gets close to a 100%
35
.
36
34
Mehrabian and Ferris (1967). "Inference of Attitude from Nonverbal Communication in Two
Channels". In: The Journal of Counselling Psychology Vol.31, 1967, pp.248-52
35
It will never meet 100% as non-verbal communication aspects like smell, feel of a hand
shake, etc. can not be transmitted by a video conference (at least currently not)
36
This consideration does not include any other disadvantage like time lag in virtual communi-
cation et.al. Cf. Chapter 2.2 Alternatives to travelling on page 21 et.seq.
-16-
Understanding the other party precisely is the essential base for any decision in
business. However a virtual meeting i.e. videoconferencing guarantees to get a
large percentage of the full communication aspects as described above. Thus
there must be more than just the pure understanding which makes business
travel indispensably.
7UXVW DQG UHODWLRQVKLS LQ EXVLQHVV
This other aspect influencing important business decisions is trust in and the re-
lationship with the other party.
A study by the Harvard business review analytical services
37
have found, that
the face-to-face meeting is essential for dealing with customers, especially for
negotiation of important contracts, "sealing the deal" and build long-term rela-
tionships to their customers.
38
One person formulated it to the point, that
³7KHUH
LV VLPSO\ QR VXEVWLWXWH IRU EUHDNLQJ EUHDG DQG JHWWLQJ WR NQRZ SHRSOH IDFHWR
IDFH 7KLV HVWDEOLVKHG WKH WUXVW DQG KHOSV PRYH \RXU UHTXHVWV LQ SULRULW\´
'HILQLWLRQV
The Sociologist Niklas Luhman has given the expression that trust is a way of
"
GHDOLQJ ZLWK FRPSOH[LW\ LQ DQ LQFUHDVLQJO\ FRPSOH[ VRFLHW\."
40
This means trust
enables to deal with complexity as trust substitutes the necessity to have all in-
formation available.
A more business related definition has been given by PLÖTNER: Trust is "the
expectation of another person or group of persons, that regarding a certain
known event they have or will not behave opportunistic against the trusting per-
son."
¡
In this definition the behaviour of a person is stressed.
37
This study is based on an online research of 2207 selected Harvard Business Review sub-
scribers and 15 telephone interviews.
38
Also compare International SCHNEIDER, p. 41
39
Harvard Business review analytical services, p.8
40
Cf. SOLOMON , p. 9
41
PLÖTNER, p.36
-17-
A relationship in terms of a buyer-seller relationship is defined as: "A relation-
ship is composed of the sum of exchanges and contacts between customer and
supplier over time via the regulation mechanisms in work and the parties' inten-
tions for the future based a mutual understanding."
¡
Trust is an essential part of a relationship and vice versa trust can only grow
with a relationship
43
. Therefore in the following it will be investigated how trust is
build up and leads to a relationship.
First of all some premises must be stated:
x The build of trust is essentially influenced by social, personal interac-
tions.
44
x Trust can only be build between human beings not between corporations.
Thus it is all about the buyer-seller relationship.
45
x In general trust is concerned with a future event which is not in control of
the trusting person.
46
x Trust normally is event oriented. This means for example: If we state to
trust person X, we mean to trust this person that he will do his best that
our products are delivered in time. However also the generalized state-
ment to trust person X implies that we expect him to act also in other ca-
ses not opportune.
47
x Trust is characterised by the situation of the trusting person. If the trust
fails, the trusting person will suffer from a very high disadvantage, which
42
HOUGAARD, p.32
43
Cf. SOLOMON, p.14
44
Cf. SYDOW
45
Cf. PLÖTNER, p.36
46
Cf. PLÖTNER, p. 38
47
Cf. PLÖTNER, p. 39 et.seq.
-18-
often is higher than the advantage would have been in a positive out-
come.
48
In this framework now the possibilities of building a relationship can be
defined.
$ PRGHO RI WUXVW
There exist various literatures about the build of trust and a relationship.
However, to not extend this thesis on the topic of trust in the following a
model has been taken representatively.
In the below Figure 5, the model of the process of trust building is stated.
)LJXUH 0RGHO RI WUXVW
¨
48
Cf. PLÖTNER, p.36 et.seq.
49
Own graphic based on MAYER
-19-
This model described the process of building up a relationship. The input is the
factors ability, benevolence and integrity.
Ability or also called competence
50
is the skill to perform as expected and ac-
cording to standards which apply to the task or role. In a new business relation-
ship, this can be proven f.e. through a well explained product, a solution to a
problem the customer has or an award in the relevant category.
Benevolence is the perception of the positive orientation of the trustee towards
the trustor. In a new relationship the benevolence can be shown though a credit
of trust by the trustee towards the trustor.
51
An example of this could be to allow
the customer some insights of the processes or work style of the supplier or of-
fer a free work sample.
Integrity can f.e. be shown through referring to other projects or customers, the
trustee has already been shown to be trustworthy.
52
In an already established
relationship this could for example been proved by the willingness of s supplier
to support the customer on a time critical project by doing over hours, however
does not charge for this.
The more I believe that the person to be trusted fulfils those factors the more
likely trust will be developed.
Furthermore the propensity of the person giving trust is influencing the build of
trust. People who generally tend to avoid risks or have made bad experience
before will tend to be slower to trust than others.
50
Cf. SOLOMON, p.83 et.seq.
51
Cf. SOLOMON, p. 37; Cf. PLÖTNER, p.145 et.seq.
52
Cf. PLÖTNER, p. 139 et.seq.
-20-
To influence the trustor's propensity positively it is recommendable to create
similarities. Humans tend to trust more a person which is similar to them then
someone who is very much different.
53
Next the factor, the perceived risk will influence if the relationship will be
achieved. Thus decisions on investment good must be seen separate from con-
sumables. In this context investment goods are characterized by the complexity
of the good or service, the extend of the transaction as well as the complexity of
the purchasing decision.
54
If all factors are consistent, a relationship will be established, which will lead into
an outcome. This outcome will prove if the given trust has been proved to be
right or if adjustments in the perception need to be made.
For long-term relationships the outcome should match with the input to maintain
he trust and the relationship to stay authentic. Authencity again positively influ-
ences the trust and relationship.
55
Eventually the build of trust and its influence to a relationship is highly complex
and will not be fully encompassed during this master thesis. Also in this context
their no true answer is possible which situations. However exactly because of
its complexity face-to-face meetings are essential for the relationship and trust
building and therefore justify business travel. A relationship, which is built on
trust, is likely to continue the business for the next required transaction. This
however will save transactional costs for the buyer as for the seller.
56
"
,I \RX FDQ WUXVW D SHUVRQ D FRQWUDFW LV VXSHUIOXRXV ,I \RX FDQ¶W WUXVW KLP D FRQ
WUDFW LV XVHOHVV (Jean Paul Getty)
53
Cf. PLÖTNER, p.155 et.seq.
54
Cf. PLÖTNER, p. 8
55
Cf. SOLOMON, p.91, 93
56
Cf. PLÖTNER, p. 57
-21-
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The above description indicates why business trips are necessary. However the
direct alternative to business travel is not going on a business trip.
If a face-to-face meeting must be replaced by a different mean of communica-
tion the alternatives are electronic media like Internet, E-mail, Telephone and
Videoconferencing.
,QWHUQHW
As nearly every company today has its own homepage, the access to informa-
tion has become much easier. At times where information was not available
through the internet it was reasonable to invite a sales person to give some
general information about the company or physically present the product. Today
these meetings are replaced by a click to the web side of the company, where
all high-level information about the company and the products are given.
(PDLO
Email is comparable with writing a letter, beside the fact that it can be trans-
ferred more quickly to the business partner. Email is a standard instrument in
today's business communication.
57
It is fast, easy to use and practically. In
many cases Email has replaced letter and fax today completely or at least is
used as the quicker alternative in many cases.
However written communication only can be misleading and is not made for ne-
gotiations or longer discussions.
7HOHIRQH
Telephone gives us the chance to quickly get in contact with a business partner
for clarification of a situation or if longer discussions are required. Most people
speak quicker than they write. For larger topics or long discussions thus the
telephone should be chosen over writing an email. Furthermore a call provides
57
Cf. Ferries Research
-22-
the opportunity to hear the voice of the business partner. Tone, speed, the
height of a voice and others are important factors in the non verbal communica-
tion as described in 2.1.2.1 Communication on page 15. Thus telephone is an
often used medium in the daily business.
9LUWXDO FRQIHUHQFLQJ
The term virtual conferencing comprises telephone, web- and videoconferenc-
ing.
58
Whereas telephone and web conferencing systems have already established to
about 50%
59
in the industry, video conferencing systems are mainly used by
companies which are operating in a software or telecommunication sector like
German Telecom, Polycom or SAP.
60
The most stated reasons for not using video conferencing by the questioned
companies during a study of Easynet were that it just has not been considered
yet or that such solutions are too costly.
61
There still is a high potential for companies to save business travel cost by a)
thinking more about the possibility of videoconferencing and b) to recalculate
the savings of travel vs. videoconferencing systems where possible.
Videoconferences are mainly an alternative for internal visits and business part-
ners who have already meet in person
62
and rather will supplement personal
meetings, than replacing them.
63
58
Cf. VCD, p.26
59
EASYNET, p.37
60
Cf. REPPESGAARD
61
EASYNET, p.47
62
Cf. VCD p. 26 and EASYNET, p.20 and CONRADY, p. 194
63
Cf. BROMME, p 130
Ende der Leseprobe aus 126 Seiten
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- , 2009, Business Travel Management Strategies, Hamburg, Bedey Media GmbH, https://www.diplom.de/document/229323
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