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The Barclaycard Business Travel Survey 2005/06 Celebrating 10 years of industry insight ©Barclaycard Business and Future Foundation
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Page 1: Celebrating 10 years of industry insight The Barclaycard ...rss.hsyndicate.com/file/152002424.pdf · the Barclaycard Business Travel Survey looks ahead to the trends business travellers

The Barclaycard BusinessTravel Survey 2005/06

Celebrating 10 years of industry insight

©Barclaycard Business and Future Foundation

Page 2: Celebrating 10 years of industry insight The Barclaycard ...rss.hsyndicate.com/file/152002424.pdf · the Barclaycard Business Travel Survey looks ahead to the trends business travellers

Contents

1 Introduction

2 Report highlights

3 The business traveller in 2005/06

4 Business travel to 2015

5 Air travel in 2005/06

6 Air travel to 2015

7 Rail travel in 2005/06

8 Rail travel to 2015

9 Travel purchase in 2005/06

10 Travel purchase to 2015

11 Hotel bookings in 2005/06

12 The use of technology in 2005/06

13 Work-life balance

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The Barclaycard Business Travel Survey is this year celebratingits 10th anniversary. It is one of the most comprehensivebusiness travel reports in the UK and is used by many to tracktrends within this dynamic and changing industry. This year,in addition to summarising the current state of business travel,the Barclaycard Business Travel Survey looks ahead to thetrends business travellers might experience in 2015.

The 2005/06 figures come from the 10th annual survey of 2,500 Barclaycard Businesscommercial cardholders – CEOs, company directors, managers, from sole tradersthrough to FTSE 100 companies.

Forecasting has been carried out by the Future Foundation, using its own in-house data and Barclaycard Business Travel Survey data, dating back to when thesurvey began.

Introduction

1

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The business traveller

Nearly half (45%) of business travellerssay they are travelling for business morein 2005/06 than they were in 2004/05.In contrast, actual miles travelled permonth have decreased from 642 in2004/05 to 608.5 in 2005/06.

The main reason given for the increasein business travel is business expansion,both overseas (33%) and in the UK(18%). Of those who say they aretravelling less, 25% put this down totechnology reducing the need.

Looking further back, however,business travel has increased by 32%since 1996/97, based on miles travelledper month.

Business travel is set to grow by 17%,with each business traveller clocking upapproximately 712 miles per week by2015. The increase will primarily be drivenby overseas expansion and a continuedneed for face-to-face meetings.

These trends are likely to encouragelonger, less-frequent trips in place ofshort, regular weekly trips.

Air travel

This year respondents to the surveyhave named British Airways as thefavourite business travel airline for thefifth year running – nearly half (47%) of business travellers gave the carriertheir vote.

British Airways also tops the rankingsfor business class travel, whilst easyJetremains number one for low-costbusiness travel.

Standard/economy travel accounts forthe majority of travel, with low-cost beingthe second most popular way to fly.

As a result of global expansion and thecontinuing need for face-to-facemeetings, the number of flights peopletake is predicted to increase by 12%from an average of 7.6 flights per yeartoday to 8.5 by 2015.

It is thought people will travel longerdistances with the number of peopletaking seven or more long-haul flightsper year predicted to increase from 6%in 1997 to 14% in 2015.

It is predicted that by 2015 half of allbusiness travellers will considerimproved services an important reasonto choose an airline (up from 31% in2005/06). Driven by the demand forimproved service and better workingconditions, the number of businesstravellers using business class servicesis likely to rise from 25% in 2005/06to approximately 33% in 2015.

Low-cost air travel is not expected toincrease further, with the level ofbusiness travellers who have used theseservices staying at the 2004/05 level of74% through to 2015.

Traditional check-in to airlines remainsthe most widely used, although themajority prefer the newer technology-based solutions, such as kiosks at theairport (24%) and mobile or onlinecheck-in (23%).

It is predicted remote electronic check-inprocedures will be preferred by almost all(90%) business travellers in 2015.

Report highlights

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3

Rail travel

Although the largest amount (37%) ofbusiness travellers would choose totravel by car, nearly a third (32%) preferto travel by rail than any other form oftransport. A further 29% like to fly.

On average, 22% of business rail travelis taken in a premium class carriage.Faster trains and more regular serviceswould make more people considertravelling by rail. 16% said that nothingwould encourage them to use railservices more.

By 2015, it is predicted that the numbersof people who claim to regularly travelby rail will go down from 34% toapproximately a quarter (25%) as newtechnology reduces the need for shortdistance travel.

It is predicted that first class travelwill increase slightly and level off withapproximately a quarter of people(25%) travelling this way in 2015,stemming the decline which has beenseen, from 35% in 1996/97 to 22% in 2005/06.

Travel purchase

Over a third (37%) of business travellersself-book their travel online, 31% have anexternal travel management companyand 10% use an internal business travelagent. A further 14% use an intranetfacility and 2% buy direct on day of travel.

More than one in three (38%) businesstravellers have no company policy torefer to when booking business travel.Employers organise business travelinsurance for approximately two inthree employees (61%) who travel forbusiness. The remainder are left toorganise it themselves.

It is predicted that the number of peoplebooking online will continue to increase,reaching approximately 70% by 2015.Moreover, the number of professionalswho are required under company policyto use the internet to book businesstravel increased from just 2% in 2003/04to 28% in 2004/05. This is predicted togrow further still to approximately 50%by 2015, although a ceiling on thisgrowth is likely as a proportion of needswill still continue to be met by TravelManagement Companies (TMCs).

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Hotel bookings

Business travellers spend an averageof £99.60 on a hotel per night ona business trip.

In 2005/06, 58% of business travellersused a budget hotel compared to 61%in 2004/05, the second decrease seenduring the last three years.

Over three quarters (79%) of businesstravellers are influenced primarily byboth price and location when bookinga hotel, approximately a quarter (27%)by the facilities available and 10% wouldalways choose a chain hotel. Nearlya fifth (17%) are restricted by companypolicy when making their choice.

Technology

The last 12 months have seen portableDVD players and music players havingan impact on business travellers for thefirst time, as has 3G technology albeit ata lower level. The use of wireless hotspotsincreased by 16% on the previous year.

Access to email (84%), tele-conferencing(36%) and video-conferencing (32%)are the technologies which have hadthe biggest impact over the last year.

Work-life balance

Over three-quarters of business travellersenjoy travelling for business (78%).

Of those who enjoy travelling forbusiness, 66% like the variety, 62%appreciate the opportunity to see theworld and 51% enjoy experiencinga new culture.

When asked what the worst occurrencehas been whilst travelling for business,nearly a third (30%) cited cancellations,missed connections and delays.

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Nearly half (45%) of businesstravellers say they aretravelling more in 2005/06for business than they werein 2004/05. This is the fourthyear running that travellingmore has been the mostcited answer by respondents.

In contrast, the distance travelled hasactually decreased which suggests thatmiles away from home can seem longerthan they actually are. Miles travelled permonth have decreased from 642 in2004/05 to 608.5 in 2005/06.

The number of days spent travelling forbusiness has fallen slightly to 2.4 daysper week, down from 2.5 in 2004/05and 2.7 in 2003/04. Nights spent awayfrom home have increased to 4.2 permonth, up from 4.1 last year, but downfrom 4.4 in 2003/04.

Are you travelling more or less forbusiness than in 2004/05?

The main reason given for the increasein business travel is business expansion,both overseas (33%) and in the UK(18%). Of those who say they aretravelling less, 25% put this down totechnology reducing the need.

If you are travelling for business morethan in 2004/05, why?

If you are travelling on business lessthan in 2004/05, why?

The business traveller in 2005/06

More 45%

Less 20%

The same 33%

Not stated 2%

Business expansion overseas 33%

Business expansion in the UK 18%

To generate new business 13%

New job 14%

Growing need for face-to-facemeetings 13%

Conferences/exhibitions 5%

Other/not stated 4%

45%

2%

33%

20%

33%

18%13%

14%

13%

5%4%

25%14%

6%

4%

6%

10%

14%

21%

Technology is reducing the need 25%

New job 21%

Lifestyle choice 14%

Cost 10%

Loss of UK business 6%

Loss of international business 4%

Working from home 6%

Other/not stated 14%

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When asked if travelling more or less forbusiness now compared to ten yearsago, over half (55%) said they were nowtravelling more, a quarter (25%) lessand 13% the same amount. A further7% were not working ten years ago.In fact, a 32% increase in miles travelledper month has been seen between1996/97 and 2005/06.

Trade in the UK is becoming more global,affected not only by new countries suchas Poland joining the EU but also by theopening up of economies such as China.

Which three areas have you travelled tomost in the previous 12 months?

The 2005/06 business traveller

The typical male business traveller isaged between 41 and 65 and is marriedwith children. He has a managerialposition in a company with a turnoverin excess of £5m but less than £20m.He will travel for business 2.5 days perweek, is away on business for 4.3nights a month and will cover 662miles each week.

The typical female business traveller ismarried, younger in age (31 - 40 years)and is less likely to have children thanher male counterpart. She travels forbusiness 2.2 days per week, is away onbusiness for 3.8 nights a month and willcover 335 miles each week.

6

75%

56%

23%

10% 10%7%

4%

UK

and

Irela

nd

Wes

tern

Eur

ope

US

and

Can

ada

Asi

a Pa

cific

East

ern

Euro

pe

Chi

na

Afr

ica

0

10

20

30

40

50

60

70

80

Survey participants can respond to morethan one option.

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Business travel is set to growby 17%, with each businesstraveller clocking upapproximately 712 miles perweek by 2015. The increasewill primarily be driven byoverseas expansion and acontinued need for face-to-face meetings, which cannotalways be replaced bytechnology. However, growthwill not be seen at theprevious rate of 32%, asseen between 2005/06 and1996/97, because technologyis predicted to replace theneed for some journeys.

These trends are likely to encouragelonger, less-frequent trips in place ofshort, regular weekly trips. The numberof days spent away on business eachweek is predicted to go down by 17%to an average of 2 days a week by 2015.However the number of nights spentaway from home each month ispredicted to go up from 4.2 nightsa month to 5.2 nights.

Ageing population

The relative proportion of older workerswill increase in the future as thepopulation ages. It is predicted that by2015 the number of the workforce over65 will reach approximately 75,000, upfrom 70,000 in 2005.

It is expected the number of olderpeople travelling on business will alsoincrease as a result. Transport providerswill need to take this shift into accountin the way in which they market theirservices to this audience, as well as indesigning the services they offer theircustomers when travelling.

Gender

It is known that the number of womenworking in higher status positions isincreasing. Women are predicted toaccount for 50% of all managers by2015 and therefore it is predicted thatthey will travel more miles for businessin the future. The needs women havefrom business travel are different fromthose of men and these differenceswill need to be taken into account bybusiness travel providers.

For example, women are less attachedto travelling by car which could be goodnews for the industry.

When travelling for business, which ofthe following methods do you prefer?

Business travel to 2015

Male Female

Car 38% 32%

Rail 30% 39%

Air 29% 25%

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8

This year British Airways hasbeen named as the favouritebusiness travel airline forthe fifth year running, votedfor by nearly half (47%) ofbusiness travellers surveyed.

easyJet has increased in popularity,with 8% of respondents moving it upto second place. This pushes VirginAtlantic into third, although it hasremained popular with 7% of businesstravellers, as in 2004/05.

British Airways also tops the rankingsfor business class travel, while easyJetremains number one for low-costbusiness travel and British Airwaysstands at fourth place in this category.

Which is your favourite airline forbusiness travel?

Standard/economy travel accounts forthe majority of travel with low-costbeing the second most popular way to fly.

In the last year, what percentageof your travel was taken in each ofthe following classes?

Business class

Of those who fly for business, overa third (36%) would choose businessclass purely for long-haul flights, 10%for short-haul and 8% for both. Overa third (35%) said neither and 11%did not state their choice.

Which is your favourite airline forbusiness class travel?

Air travel in 2005/06

2005/06 2004/05

British Airways 47% 43%

easyJet 8% 6%

Virgin Atlantic 7% 7%

BMI-Baby 4% 3%

KLM 4% 4%

Standard/Economy 43%

Low-cost 30%

Business class 17%

Premium economy 8%

Premier/First 2%

43%

2%8%

17%

30%

32%

7%

3% 3% 2%

Briti

sh A

irway

s

Virg

in A

tlant

ic

Emira

tes

Sing

apor

e

KLM

0

5

10

15

20

25

30

35

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If you fly business class, why is this? Low-cost

Nearly a third (30%) of all flights takenfor business are with a low-costprovider. This year, for the first time,a low-cost airline (easyJet) has becomethe second favourite airline for businesstravel overall. easyJet is also seen as thenumber one choice within the low-costairline category.

The main reasons for travelling withlow-cost airlines are as follows:

Survey participants can respond to morethan one option.

25%

20%

18%8%

12%

2%

15%

Provides a better service 25%

Better for working 18%

Company policy 20%

More flexible 8%

My position merits it 12%

Provides value for money 2%

Not stated 15%

40%

27% 27%

23%

8%

Dep

artu

re a

irpor

t is

clos

eto

whe

re I

wor

k

Man

agin

g co

sts

Ava

ilabi

lity

of fl

ight

s

Ease

of u

se a

nd fl

exib

ility

Leve

l of s

ervi

ce fr

om s

taff

0

5

10

15

20

25

30

40

35

Which is your favourite airline forlow-cost?

37%

13%

9%

5%3%

Ryan

air

easy

Jet

BMI-

Baby

Briti

sh A

irway

s

Flyb

e

0

5

10

15

20

25

30

40

35

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10

Over the last year, nearly one third(28%) of business travellers believe theservice low-cost airlines provide hasimproved, 9% believe it has deterioratedand 43% say it has stayed the same.The number who believe low-costairlines are a good alternative to trainshas increased by 10% to 80% overall.

Check-in

In 2005/06, when asked which methodsthey had used for checking into airlinesin the previous 12 months, traditionalcheck-in was still the most widely used,although the majority prefer the newertechnology-based solutions.

It is predicted that remote electroniccheck-in procedures will be preferred byalmost all (90%) of business travellersin 2015. This provides opportunities forairports, railway stations and transportproviders to take advantage of this newtechnology in the design and operationsof the air and rail networks.

A 100% commitment to e-ticketing bythe end of 2007 was approved at theannual meeting of the InternationalAir Transport Association, as part of aninitiative to re-engineer many of the airtransport industry's processes to"simplify" the airline business. This willalso influence the amount of peopleusing e-check-in as, for those choosingto use air travel for their business travelneeds, there will simply not be a choice.

Which of the following airline check-inmethods have you used?

Which airline check-in method doyou prefer?

Kios

ks a

t the

airp

ort

Trad

ition

al c

heck

-in

Onl

ine

seat

rese

rvat

ions

Mob

ile/o

nlin

e ch

eck-

in0

10

20

30

40

50

60

80

70

79%

53%

39%35%

Survey participants can respond to morethan one option.

Kios

ks a

t the

airp

ort

Trad

ition

al c

heck

-in

Mob

ile/o

nlin

e ch

eck-

in

Onl

ine

seat

rese

rvat

ions

0

5

10

15

20

30

25

28%

24%23%

22%

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11

Reasons for choosing an airline arebecoming more service orientated

Trust in the brand and the route offeredhave replaced reliability and comfort asthe main reasons why people choosea particular airline. This is in part due tothe airline industry, and particularly thelow-cost sector, becoming much morebrand driven and the growing trend fortravelling longer distances.

In addition, an increase in long-haulflights may be driving an increasingdesire for improved services, both onboard and after check-in. It is predictedthat by 2015 half of all business travellerswill consider improved services animportant reason to choose an airline(up from 31% in 2005/06). While costhas been mentioned as a key reason forchoosing an airline in 2005/06, it is likelyto become less important in the future.It is also likely that the ability to work onboard and use technology whilst in flightwill become increasingly important.

Desire for premium serviceon airlines

By 2015, the number of businesstravellers using business class serviceswill rise from 17% in 2005/06 toapproximately 33% in 2015, driven bythe demand for improved service andbetter working conditions. This demandis likely to be driven not only byindividuals but also by an increasingamount of companies making a policydecision to travel in business class.Business class services are already morepopular among those making long-haulflights, giving us a clear indication thatan increase in global business travel willboost the use of premium services.

Overall growth in globalbusiness travel has importantimplications for the airlineindustry. As a result of globalexpansion and the continuingneed for face-to-facemeetings, the number offlights people take is predictedto increase by 12%, from anaverage of 7.6 flights per yeartoday to 8.5 by 2015. It isthought people will travellonger distances, with thenumber of people takingseven or more long-haulflights per year predictedto increase from 6% in1996/97 to 14% in 2015.

Air travel to 2015

1996/97

Reliability 54%

Comfort 35%

Fast check-in 33%

Customer service 23%

Better safety 20%

2005/06

Route taken 48%

Trust brand 42%

Service 31%

Flexibility 31%

Cost 27%

Survey participants can respond to morethan one option.

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12

In 2005/06, when asked, ‘If you chooseBritish Airways to fly business class,why?’, the main reasons given were:

Perceptions of the value of airlines willimprove as a result of enhanced in-flightservices and new airlines offeringbusiness class services at moreaccessible prices. It is envisaged that thenumber of people citing business classairlines as value for money will rise froma fifth (20%) in 2004/05 to nearlya third (32%) in 2015.

Use of remote technologies

As the use of mobile technologies and‘blue-tooth’ increases, transportproviders will have to ensure theyprovide a conducive environment forbusiness travellers working on the move.Provision of technologies such as powerpoints and internet access will be key.

Airlines are already harnessingtechnology to make in-flight internetaccess possible. For example, satelliteservices that allow internet accesson board (e.g. Connexion) are nowbeing used on major airlines suchas Singapore Airlines and Lufthansa.Direct-to-ground broadband access isbeing adopted by established airlinesVirgin Atlantic, Cathay Pacific andNorthwest Airlines.

Levelling-off of low-cost airlines

Low-cost air travel is not expected toincrease further, with the level ofbusiness travellers who have used theseservices staying at the 2004/05 level of74% through to 2015.

This levelling-off will be seen as a resultof the low-cost travel market nearing itssaturation point, the growing popularityof business class travel (particularly forlong-haul flights) and the perceiveddifficulties associated with low-cost.Some of these disadvantages were citedby business travellers in 2004:

This trend towards business class isalready being seen with the launch oftwo new airline companies, Maxjet andEos, whose aircraft took their maidenflights in late 2005. They fly betweenNew York’s JFK and London Stanstedand offer a luxury service to all theirpassengers at relatively lower prices inthe hope of taking customers away fromBritish Airways, Virgin Atlantic and thebig US carriers.

Comfort and space for working willcontinue to become increasinglyimportant and if airlines were to stayexactly as they are today, it is predictedthat approximately 50% of people wouldcite British Airways as their chosenairline in 2015. However, increasingcompetition from other airlines such asVirgin Atlantic, Eos and Maxjet may welltemper this growth.

Trust in the airline 44%

General comfort e.g. flat-beds,space for working 44%

The routes flown 39%

Frequency of flights 32%

Frequent-flier schemes 28%

Airports are notcentrally located 18%

Poor standard of service 8%

Often delayed 8%

Not offered low-cost by their Travel Management Company (TMC) 6%

Survey participants can respond to morethan one option.

Survey participants can respond to morethan one option.

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13

The number of peopletravelling by train in the UKis greater now than at anytime in the last 40 years,according to 2005 figuresfrom the Association ofTrain Operating Companies(ATOC). More than onebillion train journeys weremade in 2003, the highestyearly number since 1962.

Although the majority (37%) ofbusiness travellers prefer to travel by car,nearly a third (32%) prefer to travel byrail than any other form of transport.A further 29% like to fly.

If you prefer to travel by rail forbusiness, why?

On average, 22% of business rail travel is taken in apremium class carriage, but more than half (54%)take under 10% of their rail travel in this class.

16% said that nothing would encouragethem to use rail services more.

What percentage of your train travelis taken in first class or businessclass carriages?

What would make you travel by rail?

Rail travel in 2005/06

72%

64%

47%Co

mfo

rt/e

ase

of u

se

Arr

ive

at d

estin

atio

n le

ssst

ress

ed a

nd m

ore

refr

eshe

d

Spee

d18%

Ava

ilabi

lity

of te

chno

logy

24%

Flex

ibili

ty/e

ase

of b

ooki

ng

5%

Chea

per

9%

Oth

er0

10

20

30

40

50

60

70

80

43%40%

29%27%

24%

Mor

e re

gula

r ser

vice

Fast

er tr

ains

Tidi

er a

nd c

lean

er

E-tic

ketin

g

Tech

nolo

gy o

n bo

ard

0

10

20

30

40

50

54%

7%

5%

4%

8%

22%

Under 10% 54%

10% to 30% 7%

31% to 60% 5%

61% to 90% 4%

Over 90% 8%

Not stated 22%Survey participants can respond to morethan one option.

Survey participants can respond to morethan one option.

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14

By 2015, it is predicted thatthe number of people whoclaim to regularly travel byrail will go down from 34%to approximately a quarter(25%), as the need fortravelling shorter distancesdeclines in light of thenew technologies.

First class rail travel

It is predicted that first class travel willincrease slightly and then level off withapproximately a quarter of people (25%)travelling this way in 2015, stemmingthe decline seen from 35% in 1996/97to 22% in 2005/06. Likely drivers will bea recovery in the UK economy and thegrowing need for improved services andbetter working conditions on board.

Rail companies such as GNER arealready improving the service andfacilities on board their trains throughthe introduction of quiet coaches,higher quality catering and technologypower points. Likewise, Virgin Trains hasintroduced a new fleet of ‘Pendalino’trains designed to travel at higherspeeds, along with improved customerservice and facilities. By 2015, it is likelythat expectations will continue toincrease, pushing companies to improveservices still further.

Rail travel outside UK

High-speed Eurostar trains link Londonwith mainland Europe and they too aredue for improvement in the future. Theopening of the Channel Tunnel Rail Linkextension will take high-speed trainsinto Kings Cross for the first time.Mainland Europe will only be two hoursaway by train. These developments willno doubt make London an increasinglyattractive destination for internationalbusiness and will also encouragelonger-distance rail travel outside of theUK in 2015. Business class services arealso likely to increase in popularity forthis type of journey.

Rail travel to 2015

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15

Over a third (37%) of business travellers self-booktheir travel online, 31% have an external Travel ManagementCompany and 10% use aninternal business travel agent. A further 14% use an intranetfacility and 2% buy direct onday of travel.

How far in advance do you bookyour business travel?

When business travellers choose to booktheir tickets in advance, they are morelikely to be able to purchase discountedtickets. Currently one in three businesstravellers (33%) choose discountedtickets compared to 21% who choosefully flexible.

More than one in three employeesare not given a company policy whenbooking business travel.

What do you think of yourcompany policy?

Employers organise business travelinsurance for two in three employees (61%)who travel for business. The remainderare left to organise it themselves.

Travel purchase in 2005/06

Over 1 month 9%

2 – 4 weeks 18%

1 – 2 weeks 34%

1 – 6 days 31%

Less than 24 hours 3%

Purchase on departure/arrival 4%

Not stated 1%

9%

34%

18%31%

3%4% 1%

Survey participants can respond to morethan one option.

21%

17%

15%

12%11%

2%

Prov

ides

the

best

pric

es

Rem

oves

the

hass

le

Prov

ides

the

best

opt

ions

Rest

ricts

cho

ice

whe

n pu

rcha

sing

Can

be

expe

nsiv

e

Oth

er

0

5

10

15

20

25

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The internet and intranetare now the most popularmethods of bookingbusiness travel with over half(51%) booking in this way. It is predicted the number ofpeople booking online willcontinue to increase,reaching approximately70% by 2015.

Moreover, the number of professionalswho are required under company policyto use the internet to book businesstravel increased from just 2% in 2003/04to 28% in 2004/05. This is predicted to grow further still to approximately50% by 2015, although a ceiling on this growth is likely as needs will still continue to be met by TravelManagement Companies (TMCs). The extensive network of such agentsacross the UK can offer knowledge and services which internet bookingportals cannot.

Nearly two thirds (64%) of businesstravellers who booked business travelin 2004/05 cite convenience as themain reason for using their chosenmethod, with a further 16% citing aneed to manage travel costs. The natureof certain internet websites allowspeople to deal-seek and perhapsbecome more fickle as a result.

A survey conducted in 2005 for theFuture Foundation among 2,000consumers who shop both online andoffline, identified that approximately three-quarters (73%) of consumers are more likely to browse to find the best deal when they are shopping onlinethan when they are shopping on thehigh street. It is hypothesised that thiswill also apply to travel purchases in thebusiness community, although perhapsto a lesser extent as the money is notcoming from an individual’s own pocket.

Increasing processing speeds andbroadband access only serve to augmentthis speed of uptake of e-ticketing ande-commerce in the business travel sector.

Travel purchase to 2015

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Business travellers spend anaverage of £99.60 on a hotelper night on a business trip,up from £93 in 2004/05.Londoners, perhaps usedto higher prices, spend themost at £115.70 per night.

In 2005/06, 58% of business travellersused a budget hotel compared to 61%in 2004/05, the second decrease seenduring the last three years. Those usingbudget hotels are prudent, with halfbelieving they provide an adequateservice for their needs. Location is thedeciding factor for 44% and 35% bookbudget hotels due to cost savings (upfrom 24% in 2004/05). For 10% it formspart of their company policy.

If you haven’t stayed in a budgethotel, why?

Over three-quarters (79%) of businesstravellers are influenced primarily byboth price and location when bookinga hotel, over a quarter (27%) by thefacilities available and 10% wouldalways choose a chain hotel. Nearly afifth (17%) are restricted by companypolicy when making their choice.

Hotel bookings in 2005/06

42%

34%

15% 15%12%

7%

Com

pany

pol

icy

Poor

loca

tion

Lack

of e

xtra

s/fa

cilit

ies

Doe

sn’t

refle

ct m

y po

sitio

n

Unc

omfo

rtab

le b

eds

Oth

er

0

10

20

30

40

50

Survey participants can respond to morethan one option.

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When looking at the useof technology by businesstravellers, the last 12 monthshave seen portable DVDplayers and music playershaving an impact for the firsttime, as has 3G technologyalbeit at a lower level.

Which of the following do you usewhen travelling for business?

The use of technology in 2005/06

66%60%

40%42%

29%

13%

23%

10% 9% 7% 7%

N/A N/A N/A

Lapt

op a

nd m

obile

phon

e po

wer

poi

nts

Faci

litie

s to

ena

ble

rem

ote

acce

ss to

em

ail

Broa

dban

d on

plan

es a

nd tr

ains

Port

able

mus

ic p

laye

rs

Port

able

DV

D p

laye

rs

3G h

ands

ets

Wire

less

hot

spot

s0

10

20

30

40

50

60

70

80

2005/06

2004/05

The technologies which had thebiggest impact in 2005/06 were:

5%

84%

36%32%

26%

14%

Vid

eo-c

onfe

renc

ing

Tele

-con

fere

ncin

g

Acc

ess

to e

mai

l

Rem

ote

acce

ss/v

irtua

lpr

ivat

e ne

twor

king

Web

-con

fere

ncin

g

Vid

eo m

obile

pho

nes

0

20

40

60

80

100

Survey participants can respond to morethan one option.

Survey participants can respond to morethan one option.

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While technology is encouraging remoteand virtual interaction, face-to-facecontact will still continue to be importantin 2015. One of the main reasons peopleare currently travelling more is for face-to-face contact, up from 8% in 2004/05to 13% in 2005/06. It is believed thatbusiness across international bordersincurs issues such as cultural or languagebarriers and incompatible time zonesall of which are better overcome withface-to-face contact. There is a sensethat remote communications – even with visual presence – cannot replaceface-to-face contact.

For those unaffected by technology, themajority (87%) believe it cannot replaceface-to-face dealings, 4% say it isunreliable (down by 5% from last year)and just 2% do not understand it.

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Over three-quarters (78%)of business travellers enjoytravelling for business. Alongwith Londoners (80%), thosein the South West (80%)and the South East (80%)are the biggest fans.

Of those who enjoy travelling forbusiness, 66% like the variety, 62%appreciate the opportunity to see theworld and 51% enjoy experiencing anew culture. Frequent-flier schemesboost enjoyment for 15% of travellers,while 8% like the prestige.

Of those who don’t enjoy travelling forbusiness, the following are cited as themain reasons:

When asked the worst thing that hashappened whilst travelling for business,nearly a third (30%) cited cancellations,missed connections and delays. Stolen,lost and broken items caused distressfor a further 17%, whilst 4% were mademiserable by illness and 3% experiencedextreme weather conditions. 3% evenfound themselves in an emergencysituation.

Work-life balance

It in

trud

es o

n pe

rson

al li

fe

It is

tirin

g an

d st

ress

ful

I don

’t lik

e st

ayin

g aw

ay fr

om h

ome

It is

mun

dane

0

10

20

30

40

50

60 58%55%

46%

32%

Survey participants can respond to morethan one option.

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For further media information, please contact Sara Barrow from Lexis PR on 0207 908 6488.

The Future Foundation for Research, Analysis and Advice LtdRegistered Office: Talbot House, Talbot Street, Nottingham, NG80 1TH United Kingdom

Barclaycard Business, Company Barclaycard Dept, PO Box 3000Teesdale Business Park, Stockton-on-Tees TS17 6YGTelephone 0870 154 0134*, Fax 01642 663636 www.barclaycardbusiness.co.uk

*Calls may be monitored or recorded to maintain high levels of security and quality of service. Calls made to 0870 numbers will cost no more than 7.5p per minute (current at January 2006) for BT customers. The price on non-BT phone lines may be different.

Barclaycard Business is a trading name of Barclays Bank PLC. Barclays Bank is authorised and regulated by the Financial Services Authority.Registered in England, Registered No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP.

BCD27866BROB1 PDF. 11715FM. Created: 01/06.


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