For the seventh year now, we’ve carried out
in-depth research into travel buyers about the issues and opportunities that
they expect to face in the year ahead. This week we released the results of
this survey for 2016 and the big news is that buyers are expecting the next 12
months to be challenging.
Why?
Budgets are increasing at a slower rate. Half of buyers are worried about rising
travel costs. Compliance, new distribution methods and traveller wellbeing are causing
them concern.
The
good news is that it’s not doom and gloom for everyone: 29 per cent of buyers
will have more money to spend in 2016 but this compares to 32 per cent last
year. At the same time, 25 per cent expect budgets to drop. Just 20 per cent
had less money last year.
The pressure on buying more for
less seems to have lessened for 2016, though, with 44 per cent of buyers arranging
more trips this year, a drop of 6 per cent on 2015, and 19 per cent arranging
fewer trips compared to 14 per cent last year.
AIRLINE
SPEND
Three quarters 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.
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%
|
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.
This
post was written by David Chapple, director, Business Travel Show, which 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.
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