Video conferencing helps Australian firms slash travel costs

Australian businesses are re-examining their travel and entertainment expenses as video conferencing becomes more widely adopted across workplaces.

Cost pressures, combined with an uncertain economic landscape, are prompting many organisations to reconsider the necessity of traditional business travel and associated costs. The increasing reliability and maturity of video conferencing technology is emerging as a central factor in these reassessments, according to Logitech for Business.

Logitech ANZ Managing Director, Damian Lepore, said organisations are able to make significant reductions to their expenditure by embracing advanced video conferencing solutions, with no reduction in collaboration or productivity.

"Video conferencing has become increasingly commonplace in modern businesses – not just as an alternative to in-person meetings but as a key communication tool in itself."

Lepore further noted, "Companies such as Logitech are spearheading this shift as Australian businesses look to reduce T&E budgets amid key cost constraints. Why fly interstate or overseas for every meeting when a virtual option is at your fingertips?"

Research supports these claims, with GlobalData figures indicating that companies may save up to 60 per cent on travel costs by switching to video conferencing. Other studies echo these findings, suggesting these savings are attainable through purposeful adoption of video meeting platforms in place of certain types of travel and face-to-face events.

From an international perspective, Flavio Gomes, Vice President of Logitech Global, also highlighted the financial and efficiency benefits of video collaboration.

"Beyond savings in travel, video collaboration helps companies close deals 15% faster (sell more) than if they tried to do it over the phone – the closing rate is 20%, versus 2% over the phone," Gomes said.

Gomes said savings of at least 30 per cent are possible in travel-related expenditure by investing in video collaboration, and added that accelerations in sales cycles have also been realised as a result of more frequent and accessible video meetings.

Environmental sustainability is also cited as a critical consideration. Findings published by Nature Communications show that a shift from in-person to virtual meetings can help companies reduce their carbon footprint by up to 94 per cent and energy usage by 90 per cent.

"Logitech for Business is committed to this carbon reduction initiative by harnessing more circular and recycled materials. We continue to pioneer new ways of working to design a sustainable and equitable world while minimising waste," Lepore explained.

In addition to financial and environmental outcomes, changes in how organisations approach meetings are having measurable impacts on productivity. Microsoft research surveying 31,000 people across 31 countries revealed that inefficient meetings are the most commonly identified barrier to productivity. The same survey showed that 68 per cent of workers do not have enough uninterrupted focus time during their workday.

Research from Otter.ai supports these findings, noting that nearly one-third of business meetings may be unnecessary, which further supports calls for organisations to reconsider which meetings require travel and which could be conducted virtually.

Lepore urges business leaders to review travel policies and explore a strategic blend of video conferencing and in-person engagement, enabled by sophisticated conferencing equipment.

"We're seeing T&E costs creep back up post-COVID, meaning organisations need to distinguish between necessary versus unnecessary travel, how virtual meetings can be implemented and any technology upgrades to support this transition," he suggested.

While acknowledging that in-person meetings still hold value in certain scenarios, organisations are progressively adopting new video conferencing solutions in their day-to-day operations. This, according to Logitech for Business, is shaping a workforce that is more agile, productive and efficient, while supporting broader cost and sustainability targets.