Table of Contents
Overview
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- What you need to know
- Scope of this Report
Executive Summary
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- The market
- Overseas business travel is in decline as businesses cut spending
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- Figure 1: Forecast volume of overseas business trips taken by UK residents, 2013-23
- Decline in business trips to Scotland and Wales
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- Figure 2: Forecast volume of domestic business trips taken by UK residents, 2013-23
- The consumer
- The proportion of business travellers is in decline
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- Figure 3: Business travel, domestic versus overseas, May 2018
- Growth opportunities in conferences and events
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- Figure 4: Business travel participation, May 2017 and May 2018
- Business traveller profile; fewer women are taking business trips
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- Figure 5: Business trips taken, by gender, May 2018
- Business travel; a young man’s game
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- Figure 6: Business trips taken, by age, May 2018
- Rail travel increases put pressure on domestic business travel
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- Figure 7: Modes of transport for business travel, May 2018
- Companies could cut back on use of travel management companies
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- Figure 8: How business trip was booked, May 2018
- Companies can blur the lines of business and leisure to foster brand loyalty
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- Figure 9: Attitudes towards business trips, May 2018
- What we think
Issues and Insights
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- Mobile banking apps are cutting costs for businesses
- The facts
- The implications
- Tough challenges lie ahead for travel management companies
- The facts
- The implications
The Market – What You Need to Know
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- Overseas business trips are in decline
- Caution affecting how companies do business throughout Great Britain
- Large decrease in business trips to Scotland and Wales
- A brighter domestic outlook for 2018
- Domestic segment should help prop up wider business travel market
- Top 10 markets for overseas business travel
- Brexit negotiations fuelling uncertainty
Market Size and Forecast
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- Market falls as businesses cut back on overseas spending
- Overseas business travel in decline
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- Figure 10: Volume and value of overseas business trips taken by UK residents, 2013-23
- Figure 11: Forecast volume of overseas business trips taken by UK residents, 2013-23
- Figure 12: Forecast value of overseas business trips taken by UK residents, 2013-23
- Business travel in England to remain largely flat, while trips in Wales and Scotland decline
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- Figure 13: Volume and value of domestic business trips taken by UK residents, 2013-23
- A significant decline in trips to Scotland and Wales
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- Figure 14: Domestic business travel in Great Britain, 2016 versus 2017
- Rising hotels costs in the UK will add to domestic expenditure
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- Figure 15: Allocation of budget while travelling on business, May 2018
- Figure 16: Forecast volume of domestic business trips taken by UK residents, 2013-23
- Figure 17: Forecast value of domestic business trips taken by UK residents, 2013-23
- Domestic segment should help prop up wider business travel market
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- Figure 18: Total (domestic and overseas) volume and value of business trips taken by UK residents, 2013-23
- Figure 19: Forecast volume of total business trips taken by UK residents, 2013-23
- Figure 20: Forecast value of total business trips taken by UK residents, 2013-23
- Forecast methodology
Market Background
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- Business trips declined in the first three quarters of 2017
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- Figure 21: Business trips by quarter, Q1-3 2016-17
- Figure 22: Business trips by quarter, 2016-17
- Top 10 markets for overseas business travel
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- Figure 23: Top 10 outbound markets, Q1-3 2016-17
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- Figure 24: Top 10 outbound markets, full year 2016-17 (est)
- As the pound remains weak against the euro and US dollar, expect companies to cut back
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- Figure 25: Value of pound sterling, versus euro and US dollar, June 2015-18
- Oil prices on the increase which could increase airfares
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- Figure 26: Europe Brent Spot Price FOB (Dollars per Barrel), May 2013-18
- Brexit negotiations fuelling uncertainty
Companies and Brands – What You Need to Know
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- Hyatt Leverage corporate travel scheme targets SMEs
- Freebird smartphone app helps manage flight disruptions
- Lumo uses machine learning to predict flights
- Concur partners with Slack and is working on Amazon Alexa tasks
- Shep travel is a lightweight Google Chrome extension that helps track travel bookings
- Chauffer driven Blacklane raises over £30 million in Series D funding
Launch Activity and Innovation
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- Freebird smartphone app helps manage flight disruptions
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- Figure 27: Mobile-based Freebird helps travellers rebook disrupted flights
- Lumo uses machine learning to predict flights
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- Figure 28: Lumo’s flight prediction tool
- Concur partners with Slack and is working on Amazon Alexa tasks
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- Figure 29: Concur and Slack partnership brings Concur Expense Beta
- Shep travel is a lightweight Google Chrome extension that helps track travel bookings
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- Figure 30: Shep’s simple chrome plugin suggests the best flights
- Chauffer driven Blacklane raises over £30 million in Series D funding
- Hyatt Leverage corporate travel scheme targets SMEs
The Consumer – What You Need to Know
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- The proportion of business travellers is in decline
- Still opportunities for conferences and events in the UK
- Business travel; a young man’s game
- Rail travel increases put pressure on domestic business travel
- Businesses may opt for more economy options as they cut spending
- The decline of travel management companies?
- Business travellers opting for Airbnb
Business Travel Participation
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- The proportion of business travellers is in decline
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- Figure 31: Business Travel, domestic versus overseas, May 2018
- Despite the downturn there are still opportunities for conferences and events on home soil
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- Figure 32: Business travel participation, May 2017 -18
- Frequency of business trips expected to decline
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- Figure 33: Frequency of business trips in the UK, May 2018
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- Figure 34: Frequency of business trips abroad, May 2018
- GDPR presents a hurdle to personalisation
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- Figure 35: Occasional business traveller versus frequent business traveller, May 2018
Profile of the Business Traveller
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- Fewer women are taking business trips as businesses cut spending
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- Figure 36: Business trips taken, by gender, May 2018
- Business travel; a young man’s game
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- Figure 37: Business trips taken, by age, May 2018
- Heathrow’s third runway set to boost business travel in the South East
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- Figure 38: Business trips taken, by region, May 2018
Business Travel Transport
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- Rail travel increases put pressure on domestic business travel
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- Figure 39: Modes of transport for business travel, May 2018
- Rising cost of oil makes travel more expensive
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- Figure 40: Modes of transport for business travel, May 2018
- Increasing fuel costs could boost electric car hire use
- Innovations in the car hire market will benefit business travellers
- Businesses may opt for more economy options as they cut spending
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- Figure 41: Class of transport for business travel, May 2018
Business Travel Booking
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- The decline of travel management companies?
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- Figure 42: How business trip was booked, May 2018
- Over a third of companies use TMCs
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- Figure 43: Use of travel management company, May 2018
- TMCs tend to be used more by larger corporations
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- Figure 44: Business travel, by company size, May 2018
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- Figure 45: How business trip was booked, by company size, May 2018
- Major players are embracing rebooking technology
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- Figure 46: Main players in the TMC market
Business Travel Behaviour
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- Companies can blur the lines of business and leisure to foster brand loyalty
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- Figure 47: Behaviours towards business trips, May 2018
- Helping frugal travellers earn monetary rewards
- Mobile banking apps proving a disruptive force
- The professionalisation of peer-to-peer accommodation
- Airbnb rolls out BTR service
- Benefits for business travellers
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 48: Best- and worst-case forecast for overseas business travel volume, 2018-23
- Figure 49: Best- and worst-case forecast for overseas business travel value, 2018-23
- Figure 50: Best- and worst-case forecast for domestic business travel volume, 2018-23
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- Figure 51: Best- and worst-case forecast for domestic business travel value, 2018-23
- Figure 52: Best- and worst-case forecast for total business travel volume (domestic and overseas), 2018-23
- Figure 53: Best- and worst-case forecast for total business travel value (domestic and overseas), 2018-23
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