Business Travel - UK - November 2006

ISSUES IN THE MARKET
Definitions
Consumer research
GMI
 ABBREVIATIONS
INSIGHTS AND OPPORTUNITIES
You work, they play
Travel pensions
Biz n’ Hers
MARKET IN BRIEF
Over one in three trips now overseas
Increasing proportion of female employees
Polarised prices in air travel
Pioneers of technology
Pioneers of ecology
Priorities
TMCs having to work harder
The leisure-business blur
More work = more play
FAST FORWARD TRENDS
 TREND 1: ‘UBUNTU ANYONE?’
Definition
What it is – general observations
Market touch points/implications
 TREND 2: ‘INFANTILISATION’
Definition
What it is – general observations
Market touch points/implications
 TREND 3: ‘TEAM MASLOW/ANALYSE THIS’
Definition
What it is – general observations
Market touch points/implications
INTERNAL MARKET ENVIRONMENT
Key points
Expanding, feminised workforce
Figure 1: Trends in levels of employment, by gender, 2001-11
Strong Pound driving long-haul business travel
Figure 2: Annual average exchange rates for Sterling against the euro and US Dollar, 2001-06
Safety, security and airport chaos
Business travellers require more from their online services
Figure 3: Internet penetration, by gender, socio-economic group and age, Jan 2001-Jul 2006
BROADER MARKET ENVIRONMENT
Emergence from global economic downturn
Figure 4: Trends in GDP and PDI, 2001-11
Population growth leading to older workforce
Figure 5: Trends in the age structure of the UK population, by gender, 2001-11
Expanding ABC1s sustain market
Figure 6: Forecast adult population trends, by socio-economic group, 2001-11
The business traveller comes of age
Figure 7: Forecast adult population trends, by lifestage, 2001-11
COMPETITIVE CONTEXT
The total international travel market
Figure 8: Overseas travel volume, 2001-06
Figure 9: International travel expenditure, at current prices, 2001-06
International travel by region
Figure 10: Business trips and spending versus other motivations, by destination, 2005
Domestic travel market
Figure 11: Domestic and overseas holiday volume, 2001-06
Figure 12: Domestic travel expenditure, at current prices, 2001-06
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
 HOTELS
Focus on style, comfort and technology
 AIR TRAVEL
Wi-Fi failure
Mobiles get more mobile
Antidote to no-frills
Fit to travel
 RAILWAYS
End of rail tickets by 2010
Wireless broadband on the move
 TECHNOLOGY
Travelling lighter
Safety first
 RESPONSIBLE BUSINESS TRAVEL
A greener approach
MARKET SIZE AND FORECAST
Overseas business travel recovers
Figure 13: Business travel market size, by volume, 2001-11
Travelling further, spending more
Figure 14: Business travel market size. by value, 2001-11
 THE FUTURE
Increase in direct bookings
TMCs having to work harder
Higher tech, higher satisfaction
Does more work equal more play?
Business travellers venturing further afield to clinch deals
SEGMENT PERFORMANCE
 DESTINATIONS
Figure 15: Top overseas destinations for business travel, 2001-05
Figure 16: Top ten overseas destinations for business travel, 2001-05
Figure 17: Overseas business visits, nights and spending, by destination, 2005
Seasonality
Figure 18: Overseas business visits and spending, by quarter and by region, 2005
 TRANSPORT
Figure 19: Overseas business travel volume, by transport used, 2001-05
Mode of transport by region
Figure 20: Overseas business visits, by mode of travel and by region, 2005
Figure 21: Overseas business spending, by mode of travel and by region, 2005
Major airports and carriers
Figure 22: Top airports and carriers used for UK business trips overseas, 2005
Figure 23: Other airports and carriers used for UK business trips overseas, 2005
Figure 24: Other airports and carriers used for UK business trips overseas, 2005
Air miles users
Figure 25: Sources from which air miles are obtained, 2002-06
Rail use
Figure 26: Frequency of travelling by rail for work/business, 2002-06
Car hire
Figure 27: Car hire in the UK in the last 12 months, 2002-06
 ACCOMMODATION
Figure 28: Hotel visited in Britain in the last 12 months for business, holiday or pleasure, 2002-06
MARKET SHARE
Figure 29: Top ten TMCs in the UK, by turnover, 2003-06
COMPANIES AND PRODUCTS – TRAVEL MANAGEMENT
TMCs working harder to add value
Add-ons key to higher margins
Advantage Business Travel
American Express Corporate Travel Service
FCm Travel Solutions
Hogg Robinson Group (HRG)
Carlson Wagonlit Travel UK (CWT)
Travelocity Business
COMPANIES AND PRODUCTS – ACCOMMODATION AND TRANSPORT
 HOTELS
InterContinental Hotel Group (IHG)
Radisson SAS Hotels and Resorts
Roomspace
Quality Hotels
Starwood Hotels and Resorts
 AIRLINES
British Airways
Eos Airlines
MAXjet
Silverjet
 TRAINS
Eurostar
THE CONSUMER: BOOKING METHODS, TRANSPORT USED AND TYPE OF TRIP
Figure 30: Booking method and type of business experience, September 2006
Business on a budget
Figure 31: Booking method and type of business experience, September 2006
Figure 32: Travel habits, by mode used for business trips, September 2006 part one
Figure 33: Travel habits, by mode used for business trips, September 2006 part two
THE CONSUMER: BOOKING METHODS, TRANSPORT USED AND TYPE OF TRIP: DETAILED DEMOGRAPHICS
 MEANS OF TRAVEL
Figure 34: Business travel, by modes used, by gender, age, region, employment status, daily newspaper readership, Sunday newspaper readership, household income, presence of children, broadband connection, daily Internet usage, TV reception, supermarket usage, commercial TV viewing and mobile provider, September 2006
Figure 35: Further business travel, by modes used, by gender, age, region, employment status, daily newspaper readership, Sunday newspaper readership, household income, presence of children, broadband connection, daily Internet usage, TV reception, supermarket usage, commercial TV viewing and mobile provider, September 2006
THE CONSUMER – TRAVEL PRIORITIES
Figure 36: Most important factors for business trips, September 2006
Figure 37: Average score of importance, September 2006
Priorities by mode of travel
Figure 38: Top-ranked factors, by modes used, September 2006 Part one
Figure 39: Top-ranked factors, by modes used, September 2006 Part two
Priorities by booking method
Figure 40: Top-ranked factors, by booking methods, September 2006
Priorities by experience
Figure 41: Top-ranked factors, by experience, September 2006
 PRIORITIES – DETAILED DEMOGRAPHICS
Figure 42: Top travelling priorities, by gender, age, region, employment status, daily newspaper readership, Sunday newspaper readership, household income, presence of children, broadband connection, daily Internet usage, TV reception, supermarket usage, commercial TV viewing and mobile provider, September 2006
THE CONSUMER – PERSONAL PREFERENCE AND HABITS
Figure 43: Preferences and attitudes towards business trips, September 2006
Preferences by booking habits
Figure 44: Preferences and attitudes towards booking habits, September 2006
Preferences by experience
Figure 45: Preferences and experience of trips, September 2006
Preferences by demographics
Figure 46: Preferences, by gender, age, household income, employment status, region, presence of children, daily newspaper readership, Sunday newspaper readership, broadband connection, daily Internet usage, TV reception, supermarket usage, commercial TV viewing and mobile provider,, September 2006 part one
Figure 47: Preferences, by gender, age, household income, employment status, region, presence of children, daily newspaper readership, Sunday newspaper readership, broadband connection, daily Internet usage, TV reception, supermarket usage, commercial TV viewing and mobile provider, September 2006 part two