Business Traveller - UK - July 2018 

OVERVIEW
What you need to know
Scope of this Report
EXECUTIVE SUMMARY
The market
Overseas business travel is in decline as businesses cut spending
Figure 1: Forecast volume of overseas business trips taken by UK residents, 2013-23
Decline in business trips to Scotland and Wales
Figure 2: Forecast volume of domestic business trips taken by UK residents, 2013-23
The consumer
The proportion of business travellers is in decline
Figure 3: Business travel, domestic versus overseas, May 2018
Growth opportunities in conferences and events
Figure 4: Business travel participation, May 2017 and May 2018
Business traveller profile; fewer women are taking business trips
Figure 5: Business trips taken, by gender, May 2018
Business travel; a young man’s game
Figure 6: Business trips taken, by age, May 2018
Rail travel increases put pressure on domestic business travel
Figure 7: Modes of transport for business travel, May 2018
Companies could cut back on use of travel management companies
Figure 8: How business trip was booked, May 2018
Companies can blur the lines of business and leisure to foster brand loyalty
Figure 9: Attitudes towards business trips, May 2018
What we think
ISSUES AND INSIGHTS
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
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
Market falls as businesses cut back on overseas spending
Overseas business travel in decline
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
Figure 13: Volume and value of domestic business trips taken by UK residents, 2013-23
A significant decline in trips to Scotland and Wales
Figure 14: Domestic business travel in Great Britain, 2016 versus 2017
Rising hotels costs in the UK will add to domestic expenditure
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
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
Business trips declined in the first three quarters of 2017
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
Figure 23: Top 10 outbound markets, Q1-3 2016-17
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
Figure 25: Value of pound sterling, versus euro and US dollar, June 2015-18
Oil prices on the increase which could increase airfares
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
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
Freebird smartphone app helps manage flight disruptions
Figure 27: Mobile-based Freebird helps travellers rebook disrupted flights
Lumo uses machine learning to predict flights
Figure 28: Lumo’s flight prediction tool
Concur partners with Slack and is working on Amazon Alexa tasks
Figure 29: Concur and Slack partnership brings Concur Expense Beta
Shep travel is a lightweight Google Chrome extension that helps track travel bookings
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
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 
The proportion of business travellers is in decline
Figure 31: Business Travel, domestic versus overseas, May 2018
Despite the downturn there are still opportunities for conferences and events on home soil
Figure 32: Business travel participation, May 2017 -18
Frequency of business trips expected to decline
Figure 33: Frequency of business trips in the UK, May 2018
Figure 34: Frequency of business trips abroad, May 2018
GDPR presents a hurdle to personalisation
Figure 35: Occasional business traveller versus frequent business traveller, May 2018
PROFILE OF THE BUSINESS TRAVELLER 
Fewer women are taking business trips as businesses cut spending
Figure 36: Business trips taken, by gender, May 2018
Business travel; a young man’s game
Figure 37: Business trips taken, by age, May 2018
Heathrow’s third runway set to boost business travel in the South East
Figure 38: Business trips taken, by region, May 2018
BUSINESS TRAVEL TRANSPORT 
Rail travel increases put pressure on domestic business travel
Figure 39: Modes of transport for business travel, May 2018
Rising cost of oil makes travel more expensive
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
Figure 41: Class of transport for business travel, May 2018
BUSINESS TRAVEL BOOKING
The decline of travel management companies?
Figure 42: How business trip was booked, May 2018
Over a third of companies use TMCs
Figure 43: Use of travel management company, May 2018
TMCs tend to be used more by larger corporations
Figure 44: Business travel, by company size, May 2018
Figure 45: How business trip was booked, by company size, May 2018
Major players are embracing rebooking technology
Figure 46: Main players in the TMC market
BUSINESS TRAVEL BEHAVIOUR
Companies can blur the lines of business and leisure to foster brand loyalty
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
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
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
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