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Budgets continue to rise; Buyers still under pressure; Airline pricing biggest concern for 2015

179 travel buyers took part in the Business Travel Show survey – 73 per cent from the UK and 27 per cent from continental Europe. In 2014, 36 per cent of buyers enjoyed bigger airline budgets and a further third predict airline budgets will increase again for 2015. Almost one third (31 per cent) of buyers had more to spend on accommodation in 2014.

One third (33 per cent) of European business travel buyers will have more money to spend in 2015 according to the results of the annual buyer survey commissioned by the Business Travel Show.

While healthy and positive, this figure is a slight drop on previous years. In 2014, 37 per cent of budgets rose and in 2012 and 2011 39 per cent of buyers had more money to spend. Almost half – 45 per cent – of buyers expect to manage more trips this year. This compares to 48 per cent in 2014. Half (47 per cent) of buyers expect their overall costs to rise.

179 travel buyers took part in the Business Travel Show survey – 73 per cent from the UK and 27 per cent from continental Europe. The full Corporate Travel Industry Trend Report featuring analysis going back to 2008 will be available to all buyers who pre-register for the show, which takes place 25-26 February 2015 at Olympia Grand in London.

Airline spend
In 2014, 36 per cent of buyers enjoyed bigger airline budgets and a further third predict airline budgets will increase again for 2015.

  • Nine per cent of buyers don’t currently – or have plans to – use low cost carriers. 26 per cent plan to increase their usage in 2015.
  • 38 per cent of buyers bought fewer business class seats in 2014 and 23 per cent will only provide business class travel for flights over eight hours.

Accomodation spend
Almost one third (31 per cent) of buyers had more to spend on accommodation in 2014.

  • All buyers use budget hotels, though for 82 per cent they account for less than 50 per cent of the room nights they book. 12 per cent of buyers used budget accommodation more or significantly more in 2014.
  • Serviced apartments account for less than 10 per cent of room nights for 84 per cent of buyers though 12 per cent of buyers did increase their use of apartments in 2014.

Martin Searle, senior category manager – travel services, Xchanging, confirmed: “Minimising cost increases in an apparently recovering economy remains a huge challenge for business travel buyers in 2015.”

Top20 issues facing buyers in 2015
Airline pricing was voted as the biggest concern facing buyers in 2015, followed by cost control, compliance, increased hotel rates and traveller safety. The chart below shows how this compares to 2014.

“The biggest issue facing me as a buyer in 2015 is managing the airline category thanks to ancillary fees, NDC and changes in traffic flow,” commented Ruediger Bruss, purchasing manager, Continental.

2014/2015

2013/2014

1.     Airline pricing – increases, lack of transparency and negotiation concerns

NDC

2.     Controlling costs and managing spend

Travel management 2.0

3.     Compliance and enforcing policy adherence

Data

4.     Increased hotel rates

Sustainability

5.     Traveller safety

Meetings management

6.     Cost savings

Mobile apps

7.     Ancillary fees

Technological developments

8.     The role of the TMC

Free Wi-Fi in hotels and on airlines

9.     Online adoption

CSR

10.  Cost increases

Terrorism

11.  Balancing traveller needs while staying within budget

Gamification

12.  Online vs TMC pricing

Relaxation of policy

13.  Sustainability

Airline bankruptcy

14.  GDS content

Integration of social and travel tools

15.  Supplier consolidation

Ancillary fees

16.  Mobile technology & solutions

Airline consolidation

17.  Airline consolidation

Risk management

18.  Availability and variety of low cost leisure tools

Virtual meetings

19.  The move towards traveller management

Fuel increases

20.  Stakeholder management

Less reliance on TMCs

“This year’s survey shows budgets are continuing to head in the right direction, which is great news and in line with predictions from the GBTA that Europe will enjoy a five per cent increase in business travel spend this year. But there is no doubt that buyers are still under pressure to buy smarter, negotiate harder and stretch their budgets for maximum results, and that’s why a visit to the Business Travel Show is a must-attend each and every year,” commented David Chapple, event director, Business Travel Show.

 

2015 v 2014

2014 v 2013

2013 v 2012

2012 v 2011

Buyers with bigger budgets

 

33%

 

37%

 

39%

 

39%

Airline budgets

33% greater

21% smaller

39% – greater

37% – the same

 

 

Accommodation budgets

 

30% – greater

43% – the same

 

 

Number of trips managed

More – 45%

The same – 41%

Fewer – 14%

More – 48%

The same – 31%

Fewer – 22%

More – 57%

The same – 22%

Fewer – 22%

 
News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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