The UK business travel market enjoyed a measure of recovery in 2011 and 2012, but trip volumes fell 5% in 2013. This poor performance can largely be attributed to significant contraction in the larger domestic segment having a disproportionate impact on the wider market, as overseas volumes have remained largely stable since crashing in 2009.
The business travel market faces a range of challenges in the coming year. Travel management companies will need to innovate to remain relevant in a market that is dominated by self-booking. The market also faces disruption as low-cost airlines such as easyJet and Ryanair as well as ‘sharing economy’ start-ups Airbnb and Uber make moves to court business travellers.
This report examines business trips taken by UK residents and forecasts how the market will perform over the next five years. It explores the challenges and opportunities that operators will face in 2014/15 and investigates the core drivers behind changes in the market. The report also examines consumer attitudes towards business trips and highlights key innovations in the market. This subject was last explored in Mintel’s Business Traveller – UK, August 2013.
Definition
This report examines business travel undertaken by UK residents, both within the UK and overseas. Business travel can include day trips and overnight trips, business meetings, incentive trips and attending conferences, exhibitions and trade shows.
An adult, for the purposes of Mintel’s research, is anyone aged 16 or over.
The standard travel and tourism definitions used in the terminology of this report are as follows:
Tourism is any travel which involves at least one overnight stay away from home.
A holiday is a subjectively defined form of tourism, as defined by the tourist in response to surveys such as the IPS. A holiday can be distinguished from other leisure travel such as visits to friends and relatives (VFR) or shopping trips.
Short-haul refers destinations within Europe. The following destinations are considered to be short-haul: Austria, Belgium, Bulgaria, Croatia, Cyprus EU, Cyprus Non-EU, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Irish Republic, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and Other Europe.
Long-haul refers to destinations outside of Europe.
The Canaries are included as a part of the Spanish market, and Madeira and the Azores are included as part of the Portuguese market.
A package holiday is defined as the simultaneous sale of at least two elements of a holiday to the traveller: fares on public transport (eg flights) and commercial accommodation (eg hotel or self-catering apartment). Other elements, such as meals or excursions, are not essential to the definition of an inclusive tour. The term ‘all-inclusive’ is used to describe a special type of resort holiday in which food, drink, excursions and other services are provided as part of the total holiday cost.
An independent holiday is one in which the traveller organises and books transport and accommodation from separate sources (eg a Channel ferry crossing and a caravan site in France).
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