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Business Travel - UK - August 2008

ISSUES IN THE MARKET
Key issues
Definitions
Abbreviations
INSIGHTS AND OPPORTUNITIES
Work becomes play
Social and business networking
Green Co.
Class credentials
MARKET IN BRIEF
Domestic: Business generates 1 in 5 travel pounds
Overseas business travel heads east
Start me up
Changing economic climate
Business goes budget in response
The Big 3 TMCs
Fast tracks and networking
Online, on tracks and involved
Business and pleasure
FAST FORWARD TRENDS
 TREND: BOTTOMLESS VANITY
What’s it about?
So what?
 TREND: NOMADIC EXPLORATION
What's it about?
So what?
 TREND: MODERN URBAN NOMADS
What's it about?
So what?
INTERNAL MARKET ENVIRONMENT
Key points
Sizing the business traveller population
Figure 1: Transport and accommodation usage, 2003-07
Transaction volumes
Figure 2: GTMC members’ transactions in millions, 2007
Travel budgets under extreme pressure
Supply side woes
Business goes no-frills
Alternatives to travel
Rise of the online travel agent
Legislative change
BROADER MARKET ENVIRONMENT
Key points
Falling GDP
Figure 3: GDP at 2008 prices in £ billion, 1997-2008
The relationship with GDP
Figure 4: Indexed trends for overseas business travel and GDP, 2000-07 (year 2000 = 100)
The relationship with overseas trade
Figure 5: UK export performance (£ billions), 2003-07
Figure 6: UK Top 10 export markets, 2003 and 2007
British enterprise
Figure 7: Key enterprise indicators, 2001-06
The consumer economy
Figure 8: Trends in personal disposable income (PDI) and consumer expenditure, 2003-13
COMPETITIVE CONTEXT
Key points
Figure 9: Overseas and domestic travel volumes and expenditure, by purpose, 2007
Domestic travel
Figure 10: Domestic travel volumes (millions), by purpose of travel, 2003-07
Overseas travel
Figure 11: Overseas travel volumes (millions) by purpose of travel, 2003-07
Figure 12: Overseas travel expenditure (£ millions) by purpose of travel, 2003-07
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO'S INNOVATING?
Key points
Hotels
Airlines
Ground-based travel
Green initiatives and CSR
Social networking
Private flying
Technology
MARKET SIZE AND FORECAST
Key points
Business travel volume analysis
Figure 13: Business travel market size by volume, 2001-13
Business travel expenditure analysis
Figure 14: Business travel market size by value, 2001-13, at current prices
Figure 15: Business travel market size by value, 2003-13, at constant 2008 prices
 FACTORS USED IN THE FORECAST
MARKET SEGMENTATION
Key points
Overseas business travel by main destination area
Figure 16: Overseas business travel volume trips (millions) by destination area, 2003-07
Figure 17: Overseas business travel, expenditure (£ millions) by destination area, 2003-07
Figure 18: Overseas business travel, volume, expenditure and average trip expenditure trends, 2003-07
Main sources of growth
Figure 19: Overseas business travel, contribution to five-year growth by destination area, 2003-07
Mode of transport
Figure 20: Overseas business travel volumes (thousands), by type of travel, 2003-07
Figure 21: European business travel volumes (millions) by type of travel, 2003-07
A period of considerable uncertainty
Figure 22: Year on year quarterly business travel volume trends, 2007 and 2008
MARKET SHARE
Key point
Figure 23: Top ten TMCs in the UK, by turnover, 2007
COMPANIES AND PRODUCTS
Key points
American Express Business Travel
BCD Travel
Carlson Wagonlit Travel (CWT)
Expedia Corporate Travel (Egencia)
FCm Travel Solutions
Hogg Robinson Group plc
Kayak
Portman Travel/Radius Network
Travelocity Business
THE CONSUMER: BUSINESS TRIPS
Key points
Figure 24: Business trips taken in the past 12 months, April 2008
Day trippers
Let’s stay over
Can conferences be rewarding?
THE CONSUMER: BUSINESS TRANSPORT
Key points
Figure 25: Transport used for business trips taken in the past 12 months, April 2008
Tyre hire
Rail travel
Twin peaks and conference carriages
Budget briefcases
THE CONSUMER: TRAVEL PRIORITIES
Key points
Figure 26: Most important factors for business trips, April 2008
Figure 27: Average priority scores, September 2006-April 2008
Priorities by demographics
Figure 28: Most important factors (punctuality, comfort, value) and their main demographic characteristics, April 2008
THE CONSUMER: BOOKING METHODS
Key points
Figure 29: Booking methods for business trips taken in the past 12 months, April 2008
Online opportunists
Business direct
Business and pleasure agents
THE CONSUMER: ATTITUDES TOWARDS BUSINESS TRAVEL
Key points
Taking control, making savings and making fun
Figure 30: Attitudes to business trips, April 2008
Expenses incentive trips
Working towards a holiday
No frills slumber
The upgrade game
Resurgent rail
Figure 31: Attitudes to business trips, September 2006-April 2008
THE CONSUMER: TARGETING OPPORTUNITIES
Time & Motions (35% of business travellers or 4.5 million adult Internet users)
Figure 32: Preferences of time & motions target group, June 2008
Premium Potentials (31% of business travellers or 4.0 million adult Internet users)
Figure 33: Preferences of premium potentials target group, June 2008
ViCS (25% of business travellers or 3.2 million adult Internet users)
Figure 34: Preferences of premium potentials target group, June 2008
Extras (10% of business travellers or 1.3 million adult Internet users)
Figure 35: Preferences of extras target group, June 2008
Figure 36: Mean scores for requirements by group, June 2008
APPENDIX – THE CONSUMER: BUSINESS TRIPS
Figure 37: UK business trips taken in the past 12 months, by demographic, April 2008
Figure 38: Business trips taken abroad in the past 12 months, by demographic, April 2008
APPENDIX – THE CONSUMER: BUSINESS TRANSPORT
Figure 39: Most popular transport used for business trips taken in the past 12 months, by demographic, April 2008
Figure 40: Transport used for business trips taken in the past 12 months, by demographic, April 2008
APPENDIX – THE CONSUMER: TRAVEL PRIORITIES
Figure 41: Most important factors for business trips, by demographic, April 2008
APPENDIX – THE CONSUMER: BOOKING METHODS
Figure 42: Booking methods for business trips taken in the past 12 months, by demographic, April 2008
APPENDIX – THE CONSUMER: ATTITUDES TOWARDS BUSINESS TRAVEL
Figure 43: Most popular attitudes to business travel, by demographic, April 2008
Figure 44: Attitudes to business trips, by demographic, April 2008
APPENDIX – THE CONSUMER: TARGETING OPPORTUNITIES
Figure  45: Target groups, by demographic, June 2008

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