Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Volume forecast of business travel (overseas & domestic), 2007-17
- Market factors
- GTMC sees transactions grow
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- Figure 2: GTMC business travel transactions, 2011
- Flying climbs slightly in 2011
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- Figure 3: Trend in the number of overseas business trips, air travel vs all, 2007-11
- Petrol pressure
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- Figure 4: UK petrol and diesel prices, 2009-12
- Rail fares keep rising
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- Figure 5: Average change in rail fares, 2004-11
- Business confidence uncertain
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- Figure 6: ICAEW UK Business Confidence Monitor, Q3 2007-Q2 2012
- Exports up
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- Figure 7: UK export performance, 2006-11
- euro crisis casts European shadow
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- Figure 8: Quarterly average exchange rates for sterling against euro, 2007-Q2 2012
- Figure 9: Percentage change in overseas business travel volume, by region, 2009-11
- Air share up in 2011
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- Figure 10: Overseas business travel, by travel mode share of market, 2006-11
- Figure 11: Share of domestic business travel by mode, 2006 vs 2010
- Companies, brands and innovation
- American Express Business Travel (AmEx BT)
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- Figure 12: Key financials of American Express for the year ended 31 December 2011
- Carlson Wagonlit Travel (CWT)
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- Figure 13: Year on year performance in key financial measures of Carlson Wagonlit UK Ltd, year ended 31 December 2011
- Hogg Robinson Group (HRG)
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- Figure 14: Year on year performance in key financial measures of Hogg Robinson Group, year ended 31 March 2012
- Innovations
- The consumer
- Over one quarter took a business trip
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- Figure 15: Business travel in the last 12 months, April 2012
- How business travellers travelled
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- Figure 16: Business travel modes used in year to April 2012
- Approach to business travel
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- Figure 17: Selected key attitudes towards business travel, April 2012
- What we think
Issues in the Market
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- What does the UK’s reliance on the European market mean for business travel?
- Will videoconferencing encroach further on business travel in future?
- Will domestic rail continue to be the cost effective option for UK business travellers?
- How can operators capitalise on business travellers’ love affair with smartphones?
- How will the growth of an older working population change overseas business travel?
Trend Application
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- Many Mes
- Let’s Make a Deal
- 2015: Old Gold
Internal Market Environment
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- Key points
- Business travel transactions on the rise
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- Figure 18: GTMC business travel transactions, 2006-11
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- Figure 19: Share of GTMC business travel transactions by category, 2006-11
- Let the train take the strain
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- Figure 20: Frequency of rail use for work/business, 2010-11
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- Figure 21: Average change in rail fares, 2004-11
- Businesses argue for better air links with emerging economies
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- Figure 22: Trips undertaken by air, by purpose, 2011
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- Figure 23: Trend in the number of overseas business trips, air travel vs all, 2006-11
- Number of flights
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- Figure 24: Number of trips undertaken by air, by purpose, 2010-11
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- Figure 25: Trends in number of business trips taken in the last 12 months, 2010-11
- Road users face petrol challenge
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- Figure 26: Frequency of car hire for business use in the last 12 months, 2010-11
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- Figure 27: UK petrol and diesel prices, 2009-12
- Destination leads mode choice
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- Figure 28: Global prices of crude oil, jet fuel, diesel and petrol, 2009-12
- Figure 29: Air Passenger Duty, July 2012
- Rising prices lead to fewer hotel stays
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- Figure 30: Frequency of stay in hotels for business, 2010-11
- Virtual business travel – virtually as good?
Broader Market Environment
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- Key points
- UK double-dip recession entrenched, while business confidence does better
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- Figure 31: GDP quarterly percentage change, Q1 2007-Q2 2012
- Figure 32: ICAEW UK Business Confidence Monitor, Q3 2007-Q1 2012
- Exports up and shifting away from EU
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- Figure 33: UK export performance, 2006-11
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- Figure 34: Top ten UK visible export markets and popularity for business travel, 2009-10
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- Figure 35: Quarterly average exchange rates for Sterling against the euro, Q1 2007-Q2 2012
- Figure 36: Annual average exchange rates for Sterling, 2007-12
- Consumer confidence sunk
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- Figure 37: GfK NOP Consumer Confidence Index, January 2008-June 2012
- Figure 38: Employment and unemployment, by gender, 2007-17
- Age requirements
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- Figure 39: Trends in the age structure of the UK population, 2007-17
- AB boost to business travel
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- Figure 40: Forecast adult population trends, by socio-economic group, 2007-17
- Business and broadband
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- Figure 41: Broadband penetration, by working status, 2004-11
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- Figure 42: Mobile phone functions used, 2011
Competitive Context
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- Key points
- Business travel behind holidays and VFR
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- Figure 43: Overseas and domestic travel market, visits and spend, 2011
- A tale of two markets
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- Figure 44: Business travel volume, UK vs overseas 2006-11
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- Figure 45: Domestic travel volumes, by purpose, 2006-11
- Figure 46: Overseas travel volumes, by purpose, 2006-11
Who’s Innovating?
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- Key points
- Apps – virtual tickets, travel companion and payment
- Virtual credit card
- Travel alerts and tracking
- Wi-Fi in the sky (and under the sea)
- Airline innovations
- Taxis – worldwide and at home
- Female-friendly
Market Size and Forecast
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- Key points
- Domestic volume grows as overseas trips languish
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- Figure 47: Business travel market, by volume, 2007-17
- Expenditure grows – at home
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- Figure 48: Business travel market, by value, 2007-17
- Figure 49: Year-on-year change in average business travel expenditure, 2008-12
- An erratic future looks likely
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- Figure 50: Year-on-year change in overseas business travel volume, June 2011-May 2012
- Figure 51: Year-on-year change in domestic business travel volume, April 2011-March 2012
- Forecast
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- Figure 52: Volume forecast of business travel (overseas & domestic), 2007-17
- Figure 53: Value forecast of business travel (overseas & domestic), 2007-17
- Figure 54: Volume forecast of domestic business travel, 2007-17
- Figure 55: Value forecast of domestic business travel, 2007-17
- Figure 56: Volume forecast of overseas business travel, 2007-17
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- Figure 57: Value forecast of overseas business travel, 2007-17
- Forecast methodology
Segment Performance
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- Key points
- European fall
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- Figure 58: Overseas business travel volume by region, 2006-11
- Figure 59: Percentage change in overseas business travel volume, by region, 2009-11
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- Figure 60: Overseas business travel expenditure*, by region, 2006-11
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- Figure 61: Overseas business travel volume, by country, 2006-11
- 1-3 nights away
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- Figure 62: Overseas business travel volume, by duration of trip and percentage share of market, 2006-11
- Figure 63: Overseas business travel volume, share of market, by duration of trip, 2006
- Figure 64: Overseas business travel volume, share of market, by duration of trip, 2011
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- Figure 65: Domestic business travel volume, by length of stay and percentage share of market, 2006-10
- Planes, trains and automobiles
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- Figure 66: Overseas business travel volume, by travel mode and percentage share of market, 2006-11
- Figure 67: Domestic business travel volume, by travel mode and percentage share of market, 2006-10
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- Figure 68: Share of domestic business travel, by mode, 2006 vs 2010
Channels to Market
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- Key points
- Online is on top
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- Figure 69: Business travel booking methods, July 2012
- Half booked themselves direct
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- Figure 70: How business travellers booked, July 2012
Companies and Products
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- American Express Business Travel (AmEx BT)
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- Figure 71: Key financials of American Express for the year ended 31 December 2011
- Carlson Wagonlit Travel (CWT)
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- Figure 72: Key financials of Carlson Wagonlit UK Ltd for the year ended 31 December 2011
- Hogg Robinson Group (HRG)
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- Figure 73: Key financials of Hogg Robinson Group for the year ended 31 March 2012
- ATPI
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- Figure 74: Key financials of ATPI Ltd for the year ended 31 December 2010
- BCD Travel
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- Figure 75: Key financials of BCD Travel UK Ltd for the year ended 31 December 2010
- Capita Business Travel
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- Figure 76: Key financials of Capita Business Travel Ltd for the financial year ended 31 December 2011
- Egencia
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- Figure 77: Key financials of Egencia UK Ltd for the year ended 31 December 2010
- Expotel
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- Figure 78: Key financials of Expotel Hotel Reservations Ltd for the financial year ended 31 October 2011
- FCm Travel Solutions
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- Figure 79: Key financials of Flight Centre UK Ltd for the year ended 30 June 2011
- Portman Travel
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- Figure 80: Key financials of Portman Travel Ltd for the year ended 31 December 2011
The Business Traveller
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- Key points
- Number of business travellers falls
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- Figure 81: Business travel in the last 12 months, 2010-12
- Home and away
- Male dominance continues
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- Figure 82: Proportion of men and women taking business trips, by type, April 2012
- Who are the business travellers?
Business Travel Modes
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- Key points
- Over half travelled by train
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- Figure 83: Business travel modes, 2010-12
- Car use drops
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- Figure 84: Average UK petrol and diesel prices, Q2 2008-Q3 2009 vs Q4 2011-Q2 2012
- Gender, age and mode
- The road warriors
- Mind how you go
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- Figure 85: Business travel modes by most popular business travel in the last 12 months, April 2012
Attitudes Towards Business Travel
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- Key points
- Recession restrictions
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- Figure 86: Attitudes towards business travel, April 2012
- Looking for leisure
- Video-conferencing effectiveness in question
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- Figure 87: Key attitudes towards alternatives to/restrictions on business travel, April 2012
- Optimism of the young
- Experience doesn’t mean confidence in expenses
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- Figure 88: Attitudes towards business travel by most popular business travel in the last 12 months, April 2012
- Car users stick with business travel
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- Figure 89: Attitudes towards business travel by business travel modes, April 2012
Targeting Opportunities
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- Key points
- Target groups
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- Figure 90: Business travel target groups, April 2012
- Fly Aways
- Demographic profile
- Marketing message
- Strictly Budget
- Demographic profile
- Marketing message
- Ordinary Optimists
- Demographic profile
- Marketing message
Appendix – Market Size and Forecast
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- Figure 91: Total business travel market volume and forecast, best and worst case scenarios, 2012-17
- Figure 92: Total business travel market value and forecast, best and worst case scenarios, 2012-17
- Figure 93: Domestic business travel market volume and forecast, best and worst case scenarios, 2012-17
- Figure 94: Domestic business travel market value and forecast, best and worst case scenarios, 2012-17
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- Figure 95: Overseas business travel market volume and forecast, best and worst case scenarios, 2012-17
- Figure 96: Overseas business travel market value and forecast, best and worst case scenarios, 2012-17
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Appendix – Segment Performance
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- Figure 97: Domestic business travel volume, by accommodation type and percentage share of market, 2006-10
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Appendix – The Business Traveller
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- Figure 98: Most popular business travel in the last 12 months, April 2012
- Figure 99: Next most popular business travel in the last 12 months, April 2012
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Appendix – Business Travel Modes
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- Figure 100: Business travel modes by day trip (UK), overnight trip and conference (UK) travel in the last 12 months, April 2012
- Figure 101: Business travel modes, overall class and rail travel, by demographics, April 2012
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- Figure 102: Business travel modes, flights and car use, by demographics, April 2012
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Appendix – Attitudes Towards Business Travel
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- Figure 103: Attitudes towards business travel by conference business travel in the last 12 months, April 2012
- Figure 104: Attitudes towards business travel by business travel modes – UK rail, LCCs and own car, April 2012
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- Figure 105: Agreement with the statements ‘I would extend a business trip to include leisure time’ and ‘I would take a partner or family for all or part of a trip’, April 2012
- Figure 106: Agreement with the statements ‘I/my company tends to choose/makes me choose budget options for business travel’ and ‘I’m confident my company will reimburse expenses for entertainment on business trips’, April 2012
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- Figure 107: Agreement with the statements ‘My company was more strict in applying its business travel policies in 2011’ and ‘Video conferencing is just as good as face-to-face meetings’, April 2012
- Figure 108: Agreement with the statements ‘I/my company has increased its use of alternatives to business travel’ and ‘I think that business travel will increase in 2012 compared to 2011’, April 2012
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- Figure 109: Agreement with the statements ‘In my experience, business travel increased in 2011 compared to 2010’ and ‘Business travel is at the same level it was before the recession’, April 2012
- Figure 110: Agreement with the statements ‘Environmental considerations play a part in my/my company’s business travel choices’ and ‘I am/my company is prepared to pay extra for premium service’, April 2012
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- Figure 111: Agreement with the statement ‘I/my company has lost business because of restrictions on business travel’, April 2012
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Appendix –Targeting Opportunities
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- Figure 112: Target groups, by attitudes towards business travel, April 2012
- Figure 113: Target groups, by business travel in the last 12 months, April 2012
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- Figure 114: Target groups, by business travel modes, April 2012
- Figure 115: Business travel target groups, by demographics, April 2012
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