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Business Traveller - UK - July 2017

OVERVIEW
What you need to know
Scope of this Report
EXECUTIVE SUMMARY
The market
Companies expected to cut back on business trips
Domestic has suffered a sharp decline but Brexit worries may boost domestic travel
Figure 1: Forecast volume of domestic business trips taken by UK residents, 2011-22
Companies likely to cut back on overseas trip expenditure
Figure 2: Forecast volume of overseas business trips taken by UK residents, 2011-22
The consumer
Two in five employees have been on a business trip
Figure 3: Business trips taken, May 2017
British Airways steering clear of budget carrier strategies
Figure 4: Transport methods for business trips, May 2016
Companies looking to cut costs opt for premium economy
Figure 5: Transport classes travelled, May 2017
Budget accommodation brands favoured for business travel
Figure 6: Accommodation used on business trip, May 2017
The sharing economy is turning its attention towards business accommodation
Figure 7: Business travel behaviours, willingness to use Airbnb for business travel, May 2017
The majority of 16-34-year-old business travellers often forget to claim expenses
Figure 8: Business travel behaviours, May 2017
Younger employees likely to respond well to ‘bleisure’ privileges over traditional workplace rewards
What we think
ISSUES AND INSIGHTS
British Airways steering clear of budget strategies
The facts
The implications
The move towards premium economy can help save money while still maintaining employee satisfaction
The facts
The implications
The sharing economy is turning its attention towards business accommodation
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Total volume of business trips negatively affected by Brexit and the weak pound
However, employees believe that business trips are better for their company than conference calls
Domestic business travel has suffered a sharp decline
Companies likely to cut back on overseas trip expenditure
MARKET SIZE AND FORECAST
Companies expected to cut back on business trips
Figure 9: Total (domestic and overseas) volume and value of business trips taken by UK residents, 2011-22
Figure 10: Business travel attitudes, May 2017
Figure 11: Forecast volume of total (domestic and overseas) business trips taken by UK residents, 2011-22
Figure 12: Forecast value of total (domestic and overseas) business trips taken by UK residents, 2011-22
Domestic business travel has suffered a sharp decline
Figure 13: Volume and value of domestic business trips taken by UK residents, 2011-22
Figure 14: Forecast volume of domestic business trips taken by UK residents, 2011-22
Figure 15: Forecast value of domestic business trips taken by UK residents, 2011-22
Companies likely to cut back on overseas trip expenditure
Figure 16: Volume and value of overseas business trips taken by UK residents, 2011-22
Figure 17: Forecast volume of overseas business trips taken by UK residents, 2011-22
Figure 18: Forecast value* of overseas business trips taken by UK residents, 2011-22
Over a third of business travellers say their companies have cut back since the Brexit vote
Figure 19: Business travel attitudes, May 2017
Forecast methodology
SEGMENT PERFORMANCE 
Businesses cut back on spending following the Brexit vote
Figure 20: Business visits by quarter, 2015-16
Economic recovery in Spain fuels growth in business travel
Figure 21: Volume of overseas business trips taken by UK residents, by top 10 countries visited, 2015 and 2016
Overseas segment – Access to the European Common Aviation Area needs to be addressed in Brexit talks
Overseas segment – Denied Boarding Regulation could be called into question
MARKET BACKGROUND 
The weak Pound – Positives and negatives for businesses
Figure 22: Pound sterling vs the US Dollar and Euro, 1 June 2016-26 July 2017
Figure 23: Pound sterling vs the Japanese Yen, 1 June 2016-26 July 2017
Figure 24: Pound sterling vs the Swiss Franc, 1 June 2016-26 July 2017
UK overseas trading – Weak Pound hurts imports but benefits exports
Figure 25: UK top 10 trading partners, value of imports at current prices, 2014-15
Figure 26: UK top 10 trading partners, value of exports at current prices, 2014-15
New EU data roaming laws makes phone bills cheaper for travellers
Low oil prices should help keep airfares low
Figure 27: Europe Brent Spot Price FOB* (Dollars per Barrel), May 2012-May 2017
LAUNCH ACTIVITY AND INNOVATION
Angie – Voice based guestroom technology
Figure 28: Angie – The voice controlled interactive guest room assistant, June 2017
Claire automates corporate travel arrangements via messaging services
Figure 29: Claire, a corporate travel management app by 30SecondsToFly, June 2017
Airbnb launch its new Business Travel Ready service
RocketTrip incentivises business travellers to choose cheaper options
THE CONSUMER – WHAT YOU NEED TO KNOW
Two in five employees have been on a business trip
Most business travellers go on 1-4 trips per year
More female employees are going on domestic business trips
Rising rail fares presents opportunism for domestic budget carriers
Companies looking to cut costs opt for premium economy
Budget accommodation brands favoured for business travel
The sharing economy is turning its attention towards business accommodation
BUSINESS TRIPS TAKEN
Two in five employees have been on a business trip
Figure 30: Business trips taken, May 2017
Rising rail fairs put a strain on business travel expenses
Figure 31: Business trips taken, May 2017
Most business travellers go on 1-4 trips per year
Figure 32: Frequency of business trips taken in the UK, May 2016
PROFILE OF THE BUSINESS TRAVELLER 
More female employees are going on domestic business trips…
Figure 33: Business trips taken by UK employees, by gender, May 2017
…but gender gap in business travel is still prevalent
Figure 34: Gender composition of business travellers, May 2017
25-34s are most likely to travel domestically and overseas for business
Figure 35: Business trips taken by UK employees, by age group, May 2017
Demographic composition of the business traveller
Figure 36: Age composition of business travellers, May 2017
Figure 37: Business traveller’s household income, May 2017
CONTROL OVER BUSINESS TRAVEL BOOKINGS 
Most business trips are self-booked
Figure 38: Business trip bookings, May 2017
BUSINESS TRAVEL TRANSPORT 
British Airways steering clear of budget carrier strategies
Figure 39: Transport methods for business trips, May 2016
easyJet aims to give passengers a luxury option at Luton
Figure 40: Volume of overseas business trips taken by UK residents, by transport method, 2012-16
Companies looking to cut costs opt for premium economy
Figure 41: Transport classes travelled, May 2017
Figure 42: Price difference for a flight from London Heathrow to New York on Tuesday 18 July 2017, by Economy, Premium Economy, and Business Class
Figure 43: British Airways Premium Economy vs Ryanair Business Plus
Figure 44: A comparison between Premium Economy on a Boeing 787-9, full-service carrier British Airways versus low-cost long-haul carrier Norwegian, May 2017
ACCOMMODATION USED FOR BUSINESS TRAVEL
Budget accommodation brands favoured for business travel
Figure 45: Accommodation used on business trip, May 2017
Premier Inn is the most popular accommodation brand for business travellers
Figure 46: Usage of Premier Inn for business trips, domestic vs overseas, May 2017
Holiday Inn can position itself as an affordable upscale option
Figure 47: Usage of Holiday Inn for business trips, domestic vs overseas, May 2017
Hilton most popular for overseas travel
Figure 48: Usage of Hilton for business trips, domestic vs overseas, May 2017
Travelodge aims to move away from its ‘motorway image’
Figure 49: Usage of Travelodge for business trips, domestic vs overseas, May 2017
Marriott aims to boost reputation with the launch of Moxy
Figure 50: Usage of Marriott for business trips, domestic vs overseas, May 2017
BUSINESS TRAVEL BEHAVIOUR
The sharing economy is turning its attention towards business accommodation
Figure 51: Business travel behaviours, willingness to use Airbnb for business travel, May 2107
The majority of 16-34-year-old business travellers often forget to claim expenses
Figure 52: Business travel behaviours, May 2017
Younger employees likely to respond well to ‘bleisure’ privileges over traditional workplace rewards
Most business travellers are put off by security entering the US
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 53: Best- and worst-case forecast for total business travel volume (domestic and overseas), 2017-22
Figure 54: Best- and worst-case forecast for total business travel value (domestic and overseas), 2017-22
Figure 55: Best- and worst-case forecast for domestic business travel volume, 2017-22
Figure 56: Best- and worst-case forecast for domestic business travel value, 2017-22
Figure 57: Best- and worst-case forecast for overseas business travel volume, 2017-22
Figure 58: Best- and worst-case forecast for overseas business travel value, 2017-22

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