Impacts of videoconferencing on business travel: the Norwegian experience

Impacts of videoconferencing on business travel: the Norwegian experience

Journal: Air Transport Management

Author: Jon Martin Denstadli

Published: 2004

Abstract

This paper assesses the impact of videoconferencing on business air travel. Results suggest that videoconferencing has only a limitedeffect on business air travel, with substitution rates of 2.5–3.5%. Thus, within the Norwegian market, videoconferencing is not considered a serious threat to the airline industry. The enterprises considered in this survey indicate low sensitivity to the threat of terror andthe instability that has followed September 11 in the US. In Norway, air travel recoveredafter 4–5 months. Videoconferencing is expected to grow but remain supplementary to personal contact.

Keywords: Business travel; Videoconferencing; Substitution effects

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