Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Airlines—UK, Leisure Intelligence, June 2005
- Definition
- Abbreviations & terms
- Abbreviations
- Terms
Executive Summary
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- Overall business travel market rebounds in 2004
- Rates for lodging and car rental increase
- All trends bad for airlines in 2000-05
- Online booking increases penetration
- Distribution channels continue to evolve
- Age and income determine travel habits
- Supplier loyalty exists in air travel but not lodging
- Employees from large companies more likely to travel for learning and networking; employees from small companies travel to visit clients
- Future market growth will come from Gen X
- Expansion in 2004-05 points the way for the next five years
Market Drivers
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- Economic growth
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- Figure 1: U.S. Gross domestic product, at current and constant prices, 2000-05
- Rising fuel costs
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- Figure 2: Graph: Jet fuel prices and airline industry fuel costs, 2000-05
- Online booking
- Severe price competition from low cost carriers
- Alternative technologies
- Age demographics and the direct impact on hotels
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- Figure 3: U.S. population by generation, 2000, 2005 and 2010
- Figure 4: Graph: Hotel business room night volume by generation, 1998-2004
- Limited hotel room supply
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- Figure 5: Graph: Number of hotel rooms available and average occupancy levels, 2000-2004
- Figure 6: Graph: Total hotel rooms sold and average room rates, 2000-2004
Market Size & Trends
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- Figure 7: Total spending on U.S. domestic business travel, at current and constant prices, 2000-05
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- Figure 8: Graph: Indexed total person trips by business and leisure travel, 1998-2005
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Market Segmentation
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- Overview
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- Figure 9: Domestic business travel sales by segment, 2003 and 2005
- Lodging for business travel
- Overview
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- Figure 10: Sales of Lodging for business purposes, at current and constant prices, 2000-05
- Segment close-up: extended stay hotels
- Business air travel
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- Figure 11: Sales of air travel for business purposes, at current and constant prices, 2000-05
- Segment close-up: private charter
- Business car rental
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- Figure 12: Sales of car rentals for business purposes, at current and constant prices, 2000-05
- Other business travel
- Business rail travel
Supply Structure
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- Airlines
- United
- JetBlue
- Lodging
- Ritz Carlton
- W Hotels
- Holiday Inn
- Car Rental
- Hertz
- Avis Rent A Car
Advertising & Promotion
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- Overview
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- Figure 13: General media expenditures by selected travel brands, 2004
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- Figure 14: Media spending by top 3 Internet travel agencies, 2002 and 2004
- Loyalty programs
- Effectiveness
- Point redemption
- Other promotions
Retail Distribution
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- Figure 15: Graph: Share of business travelers by form of travel management, 2004
- Travel management companies (TMC)
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- Figure 16: Graph: Share of top 100 corporate travel accounts, by travel management company, 2004
- American Express
- Carlson Wagonlit Travel (CWT)
- WorldTravel BTI
- Internet-based online agencies
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- Figure 17: Reasons for business travelers to go offline, 2004
- Orbitz for Business
- Expedia Corporate Travel
- Travelocity Business
- Global Distribution Systems (GDS)
- Unmanaged travel
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The Consumer
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- Introduction
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- Figure 18: Number of business trips taken in the past year, by gender, October 2005
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- Figure 19: Number of business trips taken in the past year, by age, October 2005
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- Figure 20: Number of business trips taken in the past year, by household income, October 2005
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- Figure 21: Number of business trips taken in the past year, by race/ethnicity, October 2005
- Modes and frequency of business travel
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- Figure 22: Frequency of travel services used in past year, by type of travel service, October 2005
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- Figure 23: Frequency of travel services used in past year, by type of travel service, by gender, October 2005
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- Figure 24: Frequency of travel services used in past year, by type of travel service, by age, October 2005
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- Figure 25: Frequency of travel services used in past year, by type of travel service, by household income, October 2005
- Purpose of business trips
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- Figure 26: Purpose of business trips, by household income, October 2005
- Use of communication devices
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- Figure 27: Communication and computer devices used for business by age, October 2005
- Travel arrangement
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- Figure 28: Method of travel arrangement by age, October 2005
- Attitudes toward business travel spending
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- Figure 29: Attitudes toward business travel spending, October 2005
- Loyalty to airlines or hotel chains
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- Figure 30: Attitudes toward air travel and lodging, by household income, October 2005
- Hotel amenities used
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- Figure 31: Hotel amenities used, by age, October 2005
- Cross-tab of usage of hotel amenities with those who tend to fly on the same airline
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- Figure 32: Cross-tab: hotel amenities used and tendency to fly on the same airline, October 2005
- Air travel tools and services used
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- Figure 33: Air travel tools and services used, by age, October 2005
- Business travel habits based on company size
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- Figure 34: Number of business trips taken in the past year, by company size, October 2005
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- Figure 35: Purpose of business trips taken in the past year, by company size, October 2005
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- Figure 36: Method of travel arrangement, by company size, October 2005
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- Figure 37: Attitudes toward business travel spending, by company size, October 2005
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- Figure 38: Attitudes toward business travel spending, by company size, October 2005
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- Figure 39: Frequency of travel, by type of travel, by company size, October 2005
- Summary
Future & Forecast
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- Future trends
- Market growth
- Online booking technology
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- Figure 40: Likelihood that virtually all bookings will be completed online in five years, according to business travelers, 2004
- Evolving distribution channels
- Hotel branding
- Demographics
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- Figure 41: U.S. population by generation, 2005 and 2010
- Market forecast
- U.S. domestic business travel
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- Figure 42: Forecast of total U.S. spending on domestic business travel, at current and constant prices, 2005-10
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- Figure 43: Graph: Total U.S. spending on domestic business travel, 2000-05, and forecast, 2005-10
- Lodging for business purposes
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- Figure 44: Forecast of U.S. sales of lodging for business purposes, at current and constant prices, 2005-10
- Air travel for business purposes
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- Figure 45: Forecast of U.S. sales of air travel for business purposes, at current and constant prices, 2005-10
- Car rentals for business purposes
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- Figure 46: Forecast of U.S. sales of car rentals for business purposes, at current and constant prices, 2005-10
Appendix: Trade Associations
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