Business Travel Show buyer survey results

6 January 2016: The results of the sixth annual Business Travel Show forecast suggest 2016 could be a challenging year for buyers with budgets increasing at a slower rate, half of buyers worrying about rising travel costs and compliance, new distribution methods and traveller wellbeing causing concern.

 

It’s not doom and gloom for everyone, however, as almost one third (29 per cent) of buyers will have more money to spend in 2016, this compares to 32 per cent in 2015. At the same time, a quarter expect budgets to drop, a 5 per cent increase on 2015.

 

The pressure on buying more for less seems to have lessened for 2016. 44 per cent of buyers will arrange more trips this year, a drop of 6 per cent on 2015, and 19 per cent will arrange fewer trips compared to 14 per cent last year.

 

AIRLINE SPEND

76 per cent of buyers will have the same or more to spend on airline travel in 2016. For one third, budgets will increase, the same as in 2015. One quarter (24 per cent) expect budgets to shrink. Last year, just one fifth had less to spend.

 

• The use of low cost carries remains unchanged at 86 per cent.

• In 2015, 26% booked more low cost flights, this year it rises to 27 per cent.

• The number of buyers booking fewer business class flights increased again, from 38 per cent in 2015 to 42 per cent this year.

• The number of buyers operating no time threshold for business flights dropped slightly from 33 per cent to 28 per cent.

 

ACCOMMODATION SPEND
One third of buyers will have more to spend on accommodation in 2016, the same as last year. The use of budget hotels dropped slightly. They now account for fewer than 25 per cent of bookings for three quarters (78 per cent) of buyers; down from 70 per cent in 2015.

 

TOP ISSUES FACING BUYERS

 

More than half of buyers (51 per cent) worry that travel costs will rise this year, which explains why cutting costs is their number one concern (moving up five spots since last year’s top 20). The following were given in response to an open question: What will be the biggest issue facing you as a buyer in 2016?

 

	2015/2016	2014/2015	2013/2014
	Cutting costs while maintaining quality	Airline pricing – increases, lack of transparency and negotiation concerns	NDC
	Increasing compliance	Controlling costs and managing spend	Travel management 2.0
	GDS content	Compliance and enforcing policy adherence	Data
	Risk management vs costs savings	Increased hotel rates	Sustainability
	Increasing hotel rates	Traveller safety	Meetings management
	Airline pricing	Cost savings	Mobile apps
	Supplier negotiations	Ancillary fees	Technological developments
	Securing value for money	The role of the TMC	Free Wi-Fi in hotels and on airlines
	Online adoption/booking	Online adoption	CSR
	Mobile apps	Cost increases	Terrorism
	Data and how to use it	Balancing traveller needs while staying within budget	Gamification
	Russia	Online vs TMC pricing	Relaxation of policy
	Changing traveller profiles	Sustainability	Airline bankruptcy
	Global purchasing responsibility	GDS content	Integration of social and travel tools
	Cost increases	Supplier consolidation	Ancillary fees
	Supplier consolidation	Mobile technology & solutions	Airline consolidation
	NDC	Airline consolidation	Risk management
	Discovering new destinations	Availability and variety of low cost leisure tools	Virtual meetings
	Last minute bookings	The move towards traveller management	Fuel increases
	Stakeholder management	Stakeholder management	Less reliance on TMCs

 

Buyers were also asked how they plan to change the way they manage travel this year:

 

1	Increasing use of online booking	53%
2	Increasing compliance	31%
3	Changing relationship with TMC	22%
4	Improved focus on traveller wellbeing and communication	9%
5	Use of data	9%

 

 

The Business Travel Show takes place at Olympia Grand in London on 24-25 February 2016. It is Europe’s leading event for corporate travel buyers and registration is free at www.businesstravelshow.com.

 

Notes to editors:

 

182 travel buyers took part in the seventh Business Travel Show annual survey in November 2015. 72 per cent of respondents worked in the UK and the remaining 28 per cent in continental Europe.

 

Respondents’ travel budget: %

Less than £150k/€185k 9

£151k-£500k/€186k-€625k 5

£501k-£1m/€626k-€1.3m 8

£1m-£3m/€1.3m-€3.75m 17

£3m-£10m/€3.75m-€12.5m 14

£10m+/€12.5m+ 47

 

Number of travellers responsible for: %

Fewer than 50 11

51-100 8

101-500 13

501-1000 13

1000+ 51

N.A. 4

 

	’16 v ‘15	’15 v ‘14	’14 v ‘13	’13 v ‘12	’12 v ‘11
Buyers with bigger budgets	29%	32%	37%	39%	39%
Airline budgets	33% greater 24% smaller	33% greater 21% smaller	39% greater 37% the same
Accommodation budgets	38% greater 21% smaller 37% the same	30% greater 27% smaller 43% the same	30% greater 43% the same
Number of trips managed	More – 44% The same – 37% Fewer – 19%	More – 45% The same – 41% Fewer – 14%	More – 48% The same – 31% Fewer – 22%	More – 57% The same – 22% Fewer – 22%

About the Business Travel Show:

The Business Travel Show, held annually in London for 21 years, is Europe’s largest specialised exhibition and conference bringing together 7,500 European travel professionals. This long established and reputable event provides business travel buyers and managers with the suppliers, knowledge and contacts to help create and develop successful travel programmes.

It is the major event in Europe where travel buyers and managers can evaluate thousands of products and services from over 250 global travel brands to innovative start-up companies covering air, accommodation, travel management and expenses to traveller services, technology and duty of care.

Running alongside the exhibition is Europe’s largest conference programme designed to meet knowledge requirements of beginners through to experienced travel buyers. Independently produced and supported by 175 expert speakers, the 60 topical sessions cover the full spectrum of travel management facilitating peer to peer learning and debate to enable buyers to understand how to buy and manage travel better.

The Business Travel Show provides the opportunity to meet with 7,500 professionals from across the European business travel community. From peer-to-peer and supplier networking sessions to informal social events, the event allows attendees to build new relationships and to share knowledge and best practice.