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
- Companies expected to cut back on business trips
- Domestic has suffered a sharp decline but Brexit worries may boost domestic travel
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- Figure 1: Forecast volume of domestic business trips taken by UK residents, 2011-22
- Companies likely to cut back on overseas trip expenditure
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- Figure 2: Forecast volume of overseas business trips taken by UK residents, 2011-22
- The consumer
- Two in five employees have been on a business trip
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- Figure 3: Business trips taken, May 2017
- British Airways steering clear of budget carrier strategies
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- Figure 4: Transport methods for business trips, May 2016
- Companies looking to cut costs opt for premium economy
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- Figure 5: Transport classes travelled, May 2017
- Budget accommodation brands favoured for business travel
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- Figure 6: Accommodation used on business trip, May 2017
- The sharing economy is turning its attention towards business accommodation
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- Figure 7: Business travel behaviours, willingness to use Airbnb for business travel, May 2017
- The majority of 16-34-year-old business travellers often forget to claim expenses
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- Figure 8: Business travel behaviours, May 2017
- Younger employees likely to respond well to ‘bleisure’ privileges over traditional workplace rewards
- What we think
Issues and Insights
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- British Airways steering clear of budget strategies
- The facts
- The implications
- The move towards premium economy can help save money while still maintaining employee satisfaction
- The facts
- The implications
- The sharing economy is turning its attention towards business accommodation
- The facts
- The implications
The Market – What You Need to Know
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- Total volume of business trips negatively affected by Brexit and the weak pound
- However, employees believe that business trips are better for their company than conference calls
- Domestic business travel has suffered a sharp decline
- Companies likely to cut back on overseas trip expenditure
Market Size and Forecast
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- Companies expected to cut back on business trips
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- Figure 9: Total (domestic and overseas) volume and value of business trips taken by UK residents, 2011-22
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- Figure 10: Business travel attitudes, May 2017
- Figure 11: Forecast volume of total (domestic and overseas) business trips taken by UK residents, 2011-22
- Figure 12: Forecast value of total (domestic and overseas) business trips taken by UK residents, 2011-22
- Domestic business travel has suffered a sharp decline
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- Figure 13: Volume and value of domestic business trips taken by UK residents, 2011-22
- Figure 14: Forecast volume of domestic business trips taken by UK residents, 2011-22
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- Figure 15: Forecast value of domestic business trips taken by UK residents, 2011-22
- Companies likely to cut back on overseas trip expenditure
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- Figure 16: Volume and value of overseas business trips taken by UK residents, 2011-22
- Figure 17: Forecast volume of overseas business trips taken by UK residents, 2011-22
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- Figure 18: Forecast value* of overseas business trips taken by UK residents, 2011-22
- Over a third of business travellers say their companies have cut back since the Brexit vote
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- Figure 19: Business travel attitudes, May 2017
- Forecast methodology
Segment Performance
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- Businesses cut back on spending following the Brexit vote
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- Figure 20: Business visits by quarter, 2015-16
- Economic recovery in Spain fuels growth in business travel
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- Figure 21: Volume of overseas business trips taken by UK residents, by top 10 countries visited, 2015 and 2016
- Overseas segment – Access to the European Common Aviation Area needs to be addressed in Brexit talks
- Overseas segment – Denied Boarding Regulation could be called into question
Market Background
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- The weak Pound – Positives and negatives for businesses
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- Figure 22: Pound sterling vs the US Dollar and Euro, 1 June 2016-26 July 2017
- Figure 23: Pound sterling vs the Japanese Yen, 1 June 2016-26 July 2017
- Figure 24: Pound sterling vs the Swiss Franc, 1 June 2016-26 July 2017
- UK overseas trading – Weak Pound hurts imports but benefits exports
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- Figure 25: UK top 10 trading partners, value of imports at current prices, 2014-15
- Figure 26: UK top 10 trading partners, value of exports at current prices, 2014-15
- New EU data roaming laws makes phone bills cheaper for travellers
- Low oil prices should help keep airfares low
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- Figure 27: Europe Brent Spot Price FOB* (Dollars per Barrel), May 2012-May 2017
Launch Activity and Innovation
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- Angie – Voice based guestroom technology
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- Figure 28: Angie – The voice controlled interactive guest room assistant, June 2017
- Claire automates corporate travel arrangements via messaging services
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- Figure 29: Claire, a corporate travel management app by 30SecondsToFly, June 2017
- Airbnb launch its new Business Travel Ready service
- RocketTrip incentivises business travellers to choose cheaper options
The Consumer – What You Need to Know
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- Two in five employees have been on a business trip
- Most business travellers go on 1-4 trips per year
- More female employees are going on domestic business trips
- Rising rail fares presents opportunism for domestic budget carriers
- Companies looking to cut costs opt for premium economy
- Budget accommodation brands favoured for business travel
- The sharing economy is turning its attention towards business accommodation
Business Trips Taken
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- Two in five employees have been on a business trip
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- Figure 30: Business trips taken, May 2017
- Rising rail fairs put a strain on business travel expenses
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- Figure 31: Business trips taken, May 2017
- Most business travellers go on 1-4 trips per year
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- Figure 32: Frequency of business trips taken in the UK, May 2016
Profile of the Business Traveller
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- More female employees are going on domestic business trips…
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- Figure 33: Business trips taken by UK employees, by gender, May 2017
- …but gender gap in business travel is still prevalent
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- Figure 34: Gender composition of business travellers, May 2017
- 25-34s are most likely to travel domestically and overseas for business
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- Figure 35: Business trips taken by UK employees, by age group, May 2017
- Demographic composition of the business traveller
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- Figure 36: Age composition of business travellers, May 2017
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- Figure 37: Business traveller’s household income, May 2017
Control Over Business Travel Bookings
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- Most business trips are self-booked
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- Figure 38: Business trip bookings, May 2017
Business Travel Transport
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- British Airways steering clear of budget carrier strategies
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- Figure 39: Transport methods for business trips, May 2016
- easyJet aims to give passengers a luxury option at Luton
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- Figure 40: Volume of overseas business trips taken by UK residents, by transport method, 2012-16
- Companies looking to cut costs opt for premium economy
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- Figure 41: Transport classes travelled, May 2017
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- Figure 42: Price difference for a flight from London Heathrow to New York on Tuesday 18 July 2017, by Economy, Premium Economy, and Business Class
- Figure 43: British Airways Premium Economy vs Ryanair Business Plus
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- Figure 44: A comparison between Premium Economy on a Boeing 787-9, full-service carrier British Airways versus low-cost long-haul carrier Norwegian, May 2017
Accommodation Used for Business Travel
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- Budget accommodation brands favoured for business travel
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- Figure 45: Accommodation used on business trip, May 2017
- Premier Inn is the most popular accommodation brand for business travellers
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- Figure 46: Usage of Premier Inn for business trips, domestic vs overseas, May 2017
- Holiday Inn can position itself as an affordable upscale option
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- Figure 47: Usage of Holiday Inn for business trips, domestic vs overseas, May 2017
- Hilton most popular for overseas travel
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- Figure 48: Usage of Hilton for business trips, domestic vs overseas, May 2017
- Travelodge aims to move away from its ‘motorway image’
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- Figure 49: Usage of Travelodge for business trips, domestic vs overseas, May 2017
- Marriott aims to boost reputation with the launch of Moxy
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- Figure 50: Usage of Marriott for business trips, domestic vs overseas, May 2017
Business Travel Behaviour
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- The sharing economy is turning its attention towards business accommodation
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- Figure 51: Business travel behaviours, willingness to use Airbnb for business travel, May 2107
- The majority of 16-34-year-old business travellers often forget to claim expenses
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- Figure 52: Business travel behaviours, May 2017
- Younger employees likely to respond well to ‘bleisure’ privileges over traditional workplace rewards
- Most business travellers are put off by security entering the US
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 53: Best- and worst-case forecast for total business travel volume (domestic and overseas), 2017-22
- Figure 54: Best- and worst-case forecast for total business travel value (domestic and overseas), 2017-22
- Figure 55: Best- and worst-case forecast for domestic business travel volume, 2017-22
- Figure 56: Best- and worst-case forecast for domestic business travel value, 2017-22
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- Figure 57: Best- and worst-case forecast for overseas business travel volume, 2017-22
- Figure 58: Best- and worst-case forecast for overseas business travel value, 2017-22
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