“There is scope for airlines to better attract business travellers by offering more optional, business-focused extras on top of standard or economy class tickets, thereby circumventing inflated APD charges for premium classes. While low-cost airlines often charge extra for allocated seating or additional legroom, there is scope to offer power sockets or on-board or pre-flight Wi-Fi access.”
– Harry Segal, Research Analyst
Some questions answered in this report include:
- How can the industry tempt people away from using their own cars?
- How can brands cater to demands to extend business trips for leisure?
- What does the shift away from premium travel mean for the industry?
- How will Deutsche Bahn’s cross-Channel venture affect the market?
Recovery in the UK business travel market has been a mixed bag. While the domestic market had recovered to pre-crash levels by 2011, growth has since slowed as fluctuating business confidence and cutbacks serve to dampen demand. The overseas market, however, has failed to recover from the crash suffered in 2009 and, while the market has enjoyed minor growth over the last two years, is expected to slip back into contraction in 2013.
While travel management companies have reported steady year-on-year transactional growth since 2009, they have a range of threats to content with, not least the high use of personal cars that serves to cut companies out from a lucrative chunk of the market.
This report examines business trips taken by UK residents and forecasts how the market will perform over the next five years. It explores the challenges and opportunities that operators will face in 2013/14 and investigates the core drivers behind changes in the market. The report also examines consumer attitudes towards business trips and highlights key innovations in the market.
This report examines business travel by UK residents, both within the UK (domestic) and overseas. Such travel can include business meetings, incentive trips and attending conferences, exhibitions and trade shows.
An adult, for the purposes of Mintel’s research, is anyone aged 16 or over.
The standard travel and tourism definitions used in the terminology of this report are as follows:
- Tourism is any travel which involves at least one overnight stay away from home.
- A holiday is a subjectively defined form of tourism, as defined by the tourist in response to surveys such as the IPS. A holiday can be distinguished from other leisure travel such as visits to friends and relatives (VFR) or shopping trips.
- Short-haul refers destinations within Europe. The following destinations are considered to be short-haul: Austria, Belgium, Bulgaria, Croatia, Cyprus EU, Cyprus Non-EU, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Irish Republic, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and Other Europe.
- Long-haul refers to destinations outside of Europe.
- The Canaries are included as a part of the Spanish market, and Madeira and the Azores are included as part of the Portuguese market.
- A package holiday is defined as the simultaneous sale of at least two elements of a holiday to the traveller: fares on public transport (eg flights) and commercial accommodation (eg hotel or self-catering apartment). Other elements, such as meals or excursions, are not essential to the definition of an inclusive tour. The term ‘all-inclusive’ is used to describe a special type of resort holiday in which food, drink, excursions and other services are provided as part of the total holiday cost.
- An independent holiday is one in which the traveller organises and books transport and accommodation from separate sources (eg a Channel ferry crossing and a caravan site in France).