Perhaps, but its actually a bit more complex than that right now.
The credit crunch means cheap loans for cars/holidays are not so readily available, which is obviously going to affect road and air more. Few people can afford to buy cars up front - especially if they are at risk of losing their jobs. Where rail is at risk is commuting into large cities, especially London and some of the higher premium business traffic.
10% growth on Eurostar is impressive given that several services have been withdrawn and travel times have been extended due to the Eurotunnel fire. Air has dropped 6.5% in that period.
Almost always when rail services are introduced to compete with air (under 400 miles) the latter travellers drop due to superior timekeeping, frequency, compensation arrangements and convenience of rail.
I believe video conferencing and the internet will diminish long distance business travel in the future (over 400 miles) especially when it involves travelling to a distant location abroad - which involves large costs, hotels, and sometimes language problems and jet lag. Face-to-face is still superior, but companies will look to save costs and employee time. I run a business were we sell almost 1/3 of our goods abroad, and I never set foot on a plane.
The latest round of innovation comes from Hewlett-Packard, with its Halo product, and Ciscos telepresence technology. Both innovations enable people around the globe to meet in an environment that looks, sounds and feels as if theyre sitting across the same table - no plane required. This will severly affect airlines who use business travel to cross subsidise cheaper economy fares. The British Airways of the world - the chief user of Heathrow.
Road congestion will continue to help rail in the sub 300 mile market, which is the vast majority of business. The deregulation of international rail travel from 2010 will also severely hit air travel as will high fuel costs when the economy starts to return to normal in 2-3 years.
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Video killed the passenger numbers declared a headline in The Scotsman newspaper recently. Its enough to send a shudder down the spine of any business travel agent.
The check-in queues at Scotlands three biggest airports Edinburgh, Glasgow and Aberdeen shortened earlier this year as business travellers cut back on flights. And for the first time, technology was cited as one of the reasons for the decline.
http://www.travelweekly.co.uk/Artic...ss-travel-the-rise-of-video-conferencing.html
'When an Appleton insurance company added 15 video conference rooms in less than a year, the rooms were booked solid with meetings that normally would have required thousands of miles of air travel.
"Now if we doubled the number of video conferencing units, it still wouldn't be enough," said Mike Shetter, media productions manager for Aid Association for Lutherans/Lutheran Brotherhood.
The cost benefits of video conference meetings can be huge with savings on flights, taxis, hotels and, not least, unproductive hours spent traveling. '
http://www.ivci.com/international_videoconferencing_news_videoconferencing_news_19.html
The Travel Industry Association says deep frustration among air travelers caused them to avoid an estimated 41 million trips over the past 12 months at a cost of more than $26 billion to the U.S. economy. With fuel prices as high as they are, fares will have to rise. That is going to hit air travel even harder.
An easy prediction: Video, audio and multi-media conferencing is going to get a boost.
http://www.tmcnet.com/channels/hd-v...travel-down-video-conferencing-will-be-up.htm
The global financial meltdown and resulting cost-cutting by companies have hit the business travel industry hard - and unsurprisingly providers of video conferencing services have been major gainers.
Travel industry sources told Emirates Business that the volume of business travel around the world was coming down.
http://zawya.com/story.cfm/sidZAWYA20081105054352