A typical example is Cicso's TelePresence, a self-contained conference module with a six-seat table facing three 65-inch ultra-high-definition screens. With a matching unit linked from a different location, participants at either end feel as if they are engaging in normal conversation, making eye contact, and reading one another's body language.

While most of the telepresence market so far has been for in-house use, the companies that sell the systems say they are gaining more outside customers. They're also looking for partners to develop free-standing locations in hotels and business centers where systems can be rented by the hour.

"A lot of people previously had experiences with teleconferencing in which the technology seemed quirky, but we're now able to have a telepresence room where after a few minutes you feel like you're there physically," said Caroline Japic, a spokeswoman for Polycom, which says it has sold 21,000 videoconferencing and telepresence units.

Cisco has installed about 250 of its TelePresence systems throughout its global locations, and their use has accounted for a 20 percent reduction in travel over two years, said David Hsieh, marketing director for emerging technologies. Cisco has sold more than 1,000 TelePresence units to 200 customers.

Meanwhile, some companies are rapidly filling in lower-priced market niches with systems designed for small groups and one-on-one meetings. Last spring, Teliris introduced a person-to-person system that lists for $32,000.

Kevin Mitchell, the chairman of the Business Travel Coalition, said that the lower end of the videoconferencing market—where college students stay in touch with home, or employees meet virtually from desktop to desktop—has been driving acceptance at the higher end, where most traditional business travel is done.

"The twentysomethings in the workforce are driving this trend like crazy," he said. Mitchell said that as air service deteriorates and business travel becomes more onerous, there's growing use of videoconferencing and webcasting.

"People are using these systems to roll out new products, doing webcasts for, say, 100 people," he said. "It doesn't mean they have stopped traveling altogether, but instead of somebody traveling…four days a week, they're now in the office, or home office, for a couple of weeks, communicating with prospective customers, and then they're going out for the last five days to close deals."

Despite the progress that's being made, it's unlikely that technology will fully replace travel—unless it really does become teleporting.

"Yes, teleconferencing is great, but the reality is you still have to go and get face time," said Andrew Downs, a San Francisco lawyer who represents corporate clients in insurance litigation and whose firm, with six offices in the West, uses teleconferencing for internal meetings. "You can't go to dinner or have a drink with someone on teleconferencing. I'm in a service business where I need to maintain personal relationships.

"My colleagues who have issues with getting business? Predominately, it's because they aren't willing to get on airplanes."