What you need to know
The UK business travel market suffered from 2013-14, with total volume dropping by nearly 8%, hitting 22.6 million trips, and total spend dropping by 5% to £8.6 billion (excluding expenditure on airfares, sea fares, tunnel fares and train fares to and from the UK). This can be attributed to a 10.6% fall in domestic business travel, while overseas volumes remain mostly flat.
The newly elected Conservative government is promising to tackle the spiralling cost of domestic rail travel. If successful this could see more fluid movement between the UK’s major cities. However, during Q1 2015, businesses held back on investments and expansion into new markets due to the uncertainty surrounding the outcome of May’s general election.
On 1 July, 2015, the Airports Commission outlined how further expansion of airport capacity is essential for the UK’s long-term economic health, and recommended the expansion of a new North West runway at Heathrow Airport, although many Conservatives are against this plan.
Travel management companies will need to adapt to the fact that business travellers are increasingly taking control of their trips, arranging and booking themselves on many of the wide array of smartphone apps available. In addition, companies are sending more of their employees on business trips – the total has risen from 39% to 49% in the past year. However, they are travelling less frequently; some 20% of those who travel for business have been on just one trip, while only 13% have been on two, in the past year.
Scope of the report
This report examines business trips taken by UK residents, both within the UK and overseas, including day trips and overnight trips, business meetings, incentive trips and attending conferences, exhibitions and trade shows. It explores the challenges and opportunities that operators will face in 2015/16 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. Finally, the report will look at common issues experienced on business trips, the most wanted technologies on business trips, and general attitudes towards business travel. This subject was last explored in Mintel’s Business Traveller – UK, August 2014.
