WHAT'S TROUBLING BUYERS THIS YEAR?

It's that time of year again - happy New Year, by the way - the time when we look forward to what's going to impact business travel buying over the next 12 months. At the Business Travel Show, we have carried out an annual buyer survey for the last four years. Each year, we ask buyers to spill all about the forthcoming 12 months. And here are the results for 2014. 

• 76%will have more money to spend 
• 49% are being asked to book more trips
• 76% of airline budgets will be the same or greater
• 74% of accommodation budgets will be the same or greater
• 83%  of buyers will be expected to book the same or more trips
• This is the third consecutive annual rise in the number of buyers enjoying bigger budgets 
• In 2013, 72 per cent of budgets were higher or the same
• In 2012, 67 per cent of budgets were higher

	2014 v 2013	2013 v 2012	2012 v 2011
Percentage of business travel buyers with increased budgets	76%	72%	67%
Airline budgets	39% - greater 37% - the same
Accommodation budgets	38% - greater 36% - the same
Number of trips managed	More – 49% The same – 34% Fewer – 9%	More – 57% The same – 22% Fewer – 22%

183 travel, category and procurement managers took part in the survey for the Business Travel Show, which takes place 4-5 February 2014 in London. The majority of respondents were UK-based, 55 per cent control budgets in excess of £3 million and 65 per cent manage programmes with in excess of 500 business travellers.

We also asked them about the biggest issues facing them and the industry over the next 12 months. Here are the top 20 responses:

1	NDC	11	Gamification
2	Travel management 2.0	12	Relaxation of policy
3	Data	13	Airline bankruptcy
4	Sustainability	14	Integration of social and travel tools
5	Meetings management	15	Ancillary fees
6	Mobile apps	16	Airline consolidation
7	Technological developments	17	Risk management
8	Free Wi-Fi in hotels and on airlines	18	Virtual meetings
9	CSR	19	Fuel increases
10	Terrorism	20	Less reliance on TMCs

Personally, I think these results are great news for buyers. They have faced intense pressure over the last couple of years to cut costs and stretch budgets. The figures also support the GBTA’s own predictions that the UK business travel industry is heading for very strong growth in 2014 and 2015 and, following a trying few years, western Europe’s major markets should see a bounce back over the next five years.

This post was written by Business Travel Show event director David Chapple. Find out more about buying business travel better at the Business Travel Show, 4-5 February 2014. Register now at www.businesstravelshow.com.

TRAVEL BUYERS HAVE TO BE TRAINED NEGOTIATORS TOO

I was at an ITM meeting last week and one of the topics that came up was air fares or, more specifically, how buyers can and need to negotiate their way around them. We discussed how, before business travel buyers even attempt to start negotiations with airlines, they have to dig deeper to find out what makes up that fare. Some airlines, for instance, include ancillary fees and fuel surcharges in the fare. Others don’t.

Travel managers have to know what the ancillary fees are (seat allocation, baggage allowance, and so on) so they can unravel the real cost of the ticket. Only then, are they in a position to start negotiating with the airlines. And negotiate they must given that, at around half of the total travel budget, air represents the largest spending category in nearly all travel programmes.

CWT – the UK’s largest travel management company – understands this and agrees. This week, the company announced its new report, Mastering the Maze: a Practical Guide to Air and Ground Savings, which takes travel managers on a tour of savings opportunities in 20 different areas, including negotiating fuel surcharges and ancillary fees. Well worth downloading.

Being transparent when it comes to real cost and added costs is a win win situation between buyers and suppliers – it encourages loyalty among buyers and, by staying loyal, buyers will be better placed to achieve a volume discount. What’s not to like?

Posted by David Chapple, event director of the Business Travel Show. You can get in touch at david@businesstravelshow.com or on Twitter @btshowlondon