The Barclaycard Business Travel Survey 2005/06 - Celebrating 10 years of industry insight

 
The Barclaycard Business Travel Survey 2005/06 - Celebrating 10 years of industry insight
Celebrating 10 years of industry insight

The Barclaycard Business
Travel Survey 2005/06

©Barclaycard Business and Future Foundation
The Barclaycard Business Travel Survey 2005/06 - Celebrating 10 years of industry insight
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
Introduction

The Barclaycard Business Travel Survey is this year celebrating
its 10th anniversary. It is one of the most comprehensive
business travel reports in the UK and is used by many to track
trends 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 the
trends business travellers might experience in 2015.

The 2005/06 figures come from the 10th annual survey of 2,500 Barclaycard Business
commercial cardholders – CEOs, company directors, managers, from sole traders
through 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 the
survey began.

                                                                                     1
Report highlights

The business traveller                                                                    Air travel
Nearly half (45%) of business travellers    Business travel is set to grow by 17%,        This year respondents to the survey           It is predicted that by 2015 half of all
say they are travelling for business more   with each business traveller clocking up      have named British Airways as the             business travellers will consider
in 2005/06 than they were in 2004/05.       approximately 712 miles per week by           favourite business travel airline for the     improved services an important reason
In contrast, actual miles travelled per     2015. The increase will primarily be driven   fifth year running – nearly half (47%)        to choose an airline (up from 31% in
month have decreased from 642 in            by overseas expansion and a continued         of business travellers gave the carrier       2005/06). Driven by the demand for
2004/05 to 608.5 in 2005/06.                need for face-to-face meetings.               their vote.                                   improved service and better working
                                                                                                                                        conditions, the number of business
The main reason given for the increase      These trends are likely to encourage          British Airways also tops the rankings
                                                                                                                                        travellers using business class services
in business travel is business expansion,   longer, less-frequent trips in place of       for business class travel, whilst easyJet
                                                                                                                                        is likely to rise from 25% in 2005/06
both overseas (33%) and in the UK           short, regular weekly trips.                  remains number one for low-cost
                                                                                                                                        to approximately 33% in 2015.
(18%). Of those who say they are                                                          business travel.
travelling less, 25% put this down to                                                                                                   Low-cost air travel is not expected to
                                                                                          Standard/economy travel accounts for
technology reducing the need.                                                                                                           increase further, with the level of
                                                                                          the majority of travel, with low-cost being
                                                                                                                                        business travellers who have used these
Looking further back, however,                                                            the second most popular way to fly.
                                                                                                                                        services staying at the 2004/05 level of
business travel has increased by 32%
                                                                                          As a result of global expansion and the       74% through to 2015.
since 1996/97, based on miles travelled
                                                                                          continuing need for face-to-face
per month.                                                                                                                              Traditional check-in to airlines remains
                                                                                          meetings, the number of flights people
                                                                                                                                        the most widely used, although the
                                                                                          take is predicted to increase by 12%
                                                                                                                                        majority prefer the newer technology-
                                                                                          from an average of 7.6 flights per year
                                                                                                                                        based solutions, such as kiosks at the
                                                                                          today to 8.5 by 2015.
                                                                                                                                        airport (24%) and mobile or online
                                                                                          It is thought people will travel longer       check-in (23%).
                                                                                          distances with the number of people
                                                                                                                                        It is predicted remote electronic check-in
                                                                                          taking seven or more long-haul flights
                                                                                                                                        procedures will be preferred by almost all
                                                                                          per year predicted to increase from 6%
                                                                                                                                        (90%) business travellers in 2015.
                                                                                          in 1997 to 14% in 2015.
                                                                                                                                                                                   2
Rail travel                                                                              Travel purchase
Although the largest amount (37%) of         By 2015, it is predicted that the numbers   Over a third (37%) of business travellers    It is predicted that the number of people
business travellers would choose to          of people who claim to regularly travel     self-book their travel online, 31% have an   booking online will continue to increase,
travel by car, nearly a third (32%) prefer   by rail will go down from 34% to            external travel management company           reaching approximately 70% by 2015.
to travel by rail than any other form of     approximately a quarter (25%) as new        and 10% use an internal business travel      Moreover, the number of professionals
transport. A further 29% like to fly.        technology reduces the need for short       agent. A further 14% use an intranet         who are required under company policy
                                             distance travel.                            facility and 2% buy direct on day            to use the internet to book business
On average, 22% of business rail travel
                                                                                         of travel.                                   travel increased from just 2% in 2003/04
is taken in a premium class carriage.        It is predicted that first class travel
                                                                                                                                      to 28% in 2004/05. This is predicted to
Faster trains and more regular services      will increase slightly and level off with   More than one in three (38%) business
                                                                                                                                      grow further still to approximately 50%
would make more people consider              approximately a quarter of people           travellers have no company policy to
                                                                                                                                      by 2015, although a ceiling on this
travelling by rail. 16% said that nothing    (25%) travelling this way in 2015,          refer to when booking business travel.
                                                                                                                                      growth is likely as a proportion of needs
would encourage them to use rail             stemming the decline which has been         Employers organise business travel
                                                                                                                                      will still continue to be met by Travel
services more.                               seen, from 35% in 1996/97 to 22%            insurance for approximately two in
                                                                                                                                      Management Companies (TMCs).
                                             in 2005/06.                                 three employees (61%) who travel for
                                                                                         business. The remainder are left to
                                                                                         organise it themselves.

                                                                                                                                                                              3
Hotel bookings                              Technology                                    Work-life balance
Business travellers spend an average        The last 12 months have seen portable         Over three-quarters of business travellers
of £99.60 on a hotel per night on           DVD players and music players having          enjoy travelling for business (78%).
a business trip.                            an impact on business travellers for the
                                                                                          Of those who enjoy travelling for
                                            first time, as has 3G technology albeit at
In 2005/06, 58% of business travellers                                                    business, 66% like the variety, 62%
                                            a lower level. The use of wireless hotspots
used a budget hotel compared to 61%                                                       appreciate the opportunity to see the
                                            increased by 16% on the previous year.
in 2004/05, the second decrease seen                                                      world and 51% enjoy experiencing
during the last three years.                Access to email (84%), tele-conferencing      a new culture.
                                            (36%) and video-conferencing (32%)
Over three quarters (79%) of business                                                     When asked what the worst occurrence
                                            are the technologies which have had
travellers are influenced primarily by                                                    has been whilst travelling for business,
                                            the biggest impact over the last year.
both price and location when booking                                                      nearly a third (30%) cited cancellations,
a hotel, approximately a quarter (27%)                                                    missed connections and delays.
by the facilities available and 10% would
always choose a chain hotel. Nearly
a fifth (17%) are restricted by company
policy when making their choice.

                                                                                                                                       4
The business traveller in 2005/06

Nearly half (45%) of business                 Are you travelling more or less for         If you are travelling for business more   If you are travelling on business less
                                              business than in 2004/05?                   than in 2004/05, why?                     than in 2004/05, why?
travellers say they are
travelling more in 2005/06                                     2%
                                                                                                   5%
                                                                                                          4%
                                                                                                                                             14%
for business than they were                                                                                                                                            25%
                                                                                           13%                               33%
in 2004/05. This is the fourth                33%                                                                                    6%

year running that travelling                                                                                                        4%
                                                                                    45%
more has been the most
                                                                                                                                    6%
cited answer by respondents.                                                              14%

                                                                                                                                     10%                                21%
In contrast, the distance travelled has
                                                         20%                                       13%                 18%
actually decreased which suggests that                                                                                                             14%
miles away from home can seem longer
than they actually are. Miles travelled per     More           45%                          Business expansion overseas      33%      Technology is reducing the need        25%
month have decreased from 642 in                Less           20%                          Business expansion in the UK     18%      New job                                21%
2004/05 to 608.5 in 2005/06.                    The same       33%                          To generate new business         13%      Lifestyle choice                       14%

The number of days spent travelling for         Not stated     2%                           New job                          14%      Cost                                   10%
business has fallen slightly to 2.4 days                                                    Growing need for face-to-face             Loss of UK business                    6%
                                                                                            meetings                         13%
per week, down from 2.5 in 2004/05            The main reason given for the increase                                                  Loss of international business         4%
and 2.7 in 2003/04. Nights spent away                                                       Conferences/exhibitions          5%
                                              in business travel is business expansion,                                               Working from home                      6%
from home have increased to 4.2 per                                                         Other/not stated                 4%
                                              both overseas (33%) and in the UK                                                       Other/not stated                       14%
month, up from 4.1 last year, but down        (18%). Of those who say they are
from 4.4 in 2003/04.                          travelling less, 25% put this down to
                                              technology reducing the need.

                                                                                                                                                                                   5
When asked if travelling more or less for    Which three areas have you travelled to                                                                   The 2005/06 business traveller
business now compared to ten years           most in the previous 12 months?
                                                                                                                                                       The typical male business traveller is
ago, over half (55%) said they were now
                                             80                                                                                                        aged between 41 and 65 and is married
travelling more, a quarter (25%) less              75%
                                                                                                                                                       with children. He has a managerial
and 13% the same amount. A further           70
                                                                                                                                                       position in a company with a turnover
7% were not working ten years ago.
                                             60                      56%                                                                               in excess of £5m but less than £20m.
In fact, a 32% increase in miles travelled
                                                                                                                                                       He will travel for business 2.5 days per
per month has been seen between              50
                                                                                                                                                       week, is away on business for 4.3
1996/97 and 2005/06.
                                             40                                                                                                        nights a month and will cover 662
Trade in the UK is becoming more global,                                                                                                               miles each week.
                                             30
affected not only by new countries such                                               23%
                                                                                                                                                       The typical female business traveller is
as Poland joining the EU but also by the     20
                                                                                                                                                       married, younger in age (31 - 40 years)
opening up of economies such as China.                                                                10% 10%
                                             10                                                                                       7%               and is less likely to have children than
                                                                                                                                              4%
                                                                                                                                                       her male counterpart. She travels for
                                              0
                                                                                                                                                       business 2.2 days per week, is away on
                                                    UK and Ireland

                                                                     Western Europe

                                                                                      US and Canada

                                                                                                      Asia Pacific

                                                                                                                     Eastern Europe

                                                                                                                                      China

                                                                                                                                              Africa
                                                                                                                                                       business for 3.8 nights a month and will
                                                                                                                                                       cover 335 miles each week.

                                             Survey participants can respond to more
                                             than one option.

                                                                                                                                                                                                  6
Business travel to 2015

Business travel is set to grow   These trends are likely to encourage      Ageing population                           Gender
                                 longer, less-frequent trips in place of
by 17%, with each business                                                 The relative proportion of older workers    It is known that the number of women
                                 short, regular weekly trips. The number
traveller clocking up                                                      will increase in the future as the          working in higher status positions is
                                 of days spent away on business each
                                                                           population ages. It is predicted that by    increasing. Women are predicted to
approximately 712 miles per      week is predicted to go down by 17%
                                                                           2015 the number of the workforce over       account for 50% of all managers by
week by 2015. The increase       to an average of 2 days a week by 2015.
                                                                           65 will reach approximately 75,000, up      2015 and therefore it is predicted that
                                 However the number of nights spent
will primarily be driven by      away from home each month is
                                                                           from 70,000 in 2005.                        they will travel more miles for business
overseas expansion and a                                                                                               in the future. The needs women have
                                 predicted to go up from 4.2 nights        It is expected the number of older
                                                                                                                       from business travel are different from
continued need for face-to-      a month to 5.2 nights.                    people travelling on business will also
                                                                                                                       those of men and these differences
                                                                           increase as a result. Transport providers
face meetings, which cannot                                                                                            will need to be taken into account by
                                                                           will need to take this shift into account
always be replaced by                                                      in the way in which they market their
                                                                                                                       business travel providers.

technology. However, growth                                                services to this audience, as well as in    For example, women are less attached
will not be seen at the                                                    designing the services they offer their     to travelling by car which could be good
                                                                           customers when travelling.                  news for the industry.
previous rate of 32%, as
seen between 2005/06 and
                                                                                                                       When travelling for business, which of
1996/97, because technology                                                                                            the following methods do you prefer?
is predicted to replace the
need for some journeys.                                                                                                               Male         Female

                                                                                                                        Car           38%          32%

                                                                                                                        Rail          30%          39%

                                                                                                                        Air           29%          25%

                                                                                                                                                                  7
Air travel in 2005/06

This year British Airways has              Which is your favourite airline for    In the last year, what percentage      Business class
                                           business travel?                       of your travel was taken in each of
been named as the favourite                                                                                              Of those who fly for business, over
                                                                                  the following classes?
business travel airline for                                                                                              a third (36%) would choose business
                                                              2005/06 2004/05
                                                                                                     2%                  class purely for long-haul flights, 10%
the fifth year running, voted               British Airways 47%          43%
                                                                                            8%
                                                                                                                         for short-haul and 8% for both. Over
for by nearly half (47%) of                                                                                              a third (35%) said neither and 11%
                                            easyJet           8%         6%
business travellers surveyed.                                                     17%                              43%   did not state their choice.
                                            Virgin Atlantic   7%         7%

                                            BMI-Baby          4%         3%                                              Which is your favourite airline for
easyJet has increased in popularity,
with 8% of respondents moving it up         KLM               4%         4%                                              business class travel?
to second place. This pushes Virgin                                                                                      35
                                                                                                                               32%
Atlantic into third, although it has       Standard/economy travel accounts for
remained popular with 7% of business       the majority of travel with low-cost                                          30
                                                                                          30%
travellers, as in 2004/05.                 being the second most popular way
                                                                                                                         25
                                           to fly.
British Airways also tops the rankings                                              Standard/Economy      43%
for business class travel, while easyJet                                                                                 20
                                                                                    Low-cost              30%
remains number one for low-cost                                                     Business class        17%            15
business travel and British Airways
                                                                                    Premium economy       8%
stands at fourth place in this category.                                                                                 10
                                                                                    Premier/First         2%                                      7%
                                                                                                                          5                                         3%         3%
                                                                                                                                                                                           2%
                                                                                                                          0

                                                                                                                                British Airways

                                                                                                                                                  Virgin Atlantic

                                                                                                                                                                    Emirates

                                                                                                                                                                               Singapore

                                                                                                                                                                                           KLM
                                                                                                                                                                                                 8
If you fly business class, why is this?    Low-cost                                      The main reasons for travelling with                                                                                                      Which is your favourite airline for
                                                                                         low-cost airlines are as follows:                                                                                                         low-cost?
                                           Nearly a third (30%) of all flights taken
          15%
                                 25%       for business are with a low-cost                     40%
                                                                                         40                                                                                                                                        40
                                           provider. This year, for the first time,                                                                                                                                                      37%
   2%
                                           a low-cost airline (easyJet) has become       35                                                                                                                                        35
                                           the second favourite airline for business
12%                                                                                      30                                                                                                                                        30
                                           travel overall. easyJet is also seen as the                                      27%              27%
                                           number one choice within the low-cost         25                                                                            23%                                                         25
                                           airline category.
   8%                                                                                    20                                                                                                                                        20
                                     18%
                                                                                         15                                                                                                                                        15               13%
                  20%                                                                    10                                                                                                                                        10                         9%
                                                                                                                                                                                                     8%
                                                                                                                                                                                                                                                                         5%
  Provides a better service    25%                                                        5                                                                                                                                         5                                                      3%
  Better for working           18%
                                                                                          0                                                                                                                                         0

                                                                                                                                                                                                                                          easyJet

                                                                                                                                                                                                                                                    Ryanair

                                                                                                                                                                                                                                                              BMI-Baby

                                                                                                                                                                                                                                                                         British Airways

                                                                                                                                                                                                                                                                                           Flybe
                                                                                               Departure airport is close
                                                                                                        to where I work

                                                                                                                            Managing costs

                                                                                                                                             Availability of flights

                                                                                                                                                                       Ease of use and flexibility

                                                                                                                                                                                                     Level of service from staff
  Company policy               20%
  More flexible                8%
  My position merits it        12%
  Provides value for money     2%
  Not stated                   15%

                                                                                         Survey participants can respond to more
                                                                                         than one option.

                                                                                                                                                                                                                                                                                                   9
Over the last year, nearly one third        Which of the following airline check-in                                                                     Which airline check-in method do                                                                           It is predicted that remote electronic
(28%) of business travellers believe the    methods have you used?                                                                                      you prefer?                                                                                                check-in procedures will be preferred by
service low-cost airlines provide has                                                                                                                                                                                                                              almost all (90%) of business travellers
                                                    79%                                                                                                 30
improved, 9% believe it has deteriorated    80                                                                                                                                                                                                                     in 2015. This provides opportunities for
                                                                                                                                                               28%
and 43% say it has stayed the same.                                                                                                                                                                                                                                airports, railway stations and transport
                                            70
The number who believe low-cost                                                                                                                         25                             24%                                                                         providers to take advantage of this new
                                                                                                                                                                                                               23%
                                            60                                                                                                                                                                                          22%
airlines are a good alternative to trains                                                                                                                                                                                                                          technology in the design and operations
                                                                            53%
has increased by 10% to 80% overall.                                                                                                                    20                                                                                                         of the air and rail networks.
                                            50
                                                                                                    39%                                                                                                                                                            A 100% commitment to e-ticketing by
                                            40                                                                                                          15
Check-in                                                                                                                       35%                                                                                                                                 the end of 2007 was approved at the
                                            30                                                                                                                                                                                                                     annual meeting of the International
In 2005/06, when asked which methods                                                                                                                    10
they had used for checking into airlines                                                                                                                                                                                                                           Air Transport Association, as part of an
                                            20
in the previous 12 months, traditional                                                                                                                                                                                                                             initiative to re-engineer many of the air
                                                                                                                                                         5
                                            10                                                                                                                                                                                                                     transport industry's processes to
check-in was still the most widely used,
although the majority prefer the newer                                                                                                                   0
                                                                                                                                                                                                                                                                   "simplify" the airline business. This will
                                             0
                                                                                                                                                                                                                                                                   also influence the amount of people

                                                                                                                                                                Traditional check-in

                                                                                                                                                                                       Kiosks at the airport

                                                                                                                                                                                                               Mobile/online check-in

                                                                                                                                                                                                                                        Online seat reservations
                                                     Traditional check-in

                                                                            Kiosks at the airport

                                                                                                    Online seat reservations

                                                                                                                               Mobile/online check-in
technology-based solutions.
                                                                                                                                                                                                                                                                   using e-check-in as, for those choosing
                                                                                                                                                                                                                                                                   to use air travel for their business travel
                                                                                                                                                                                                                                                                   needs, there will simply not be a choice.

                                            Survey participants can respond to more
                                            than one option.

                                                                                                                                                                                                                                                                                                             10
Air travel to 2015

Overall growth in global           Reasons for choosing an airline are                                                            Desire for premium service
business travel has important
                                   becoming more service orientated                                                               on airlines

implications for the airline        1996/97                                       2005/06                                         By 2015, the number of business
                                                                                                                                  travellers using business class services
industry. As a result of global     Reliability                        54%        Route taken                       48%
                                                                                                                                  will rise from 17% in 2005/06 to
expansion and the continuing        Comfort                            35%        Trust brand                       42%           approximately 33% in 2015, driven by
need for face-to-face               Fast check-in                      33%        Service                           31%           the demand for improved service and
meetings, the number of                                                                                                           better working conditions. This demand
                                    Customer service                   23%        Flexibility                       31%
                                                                                                                                  is likely to be driven not only by
flights people take is predicted    Better safety                      20%        Cost                              27%           individuals but also by an increasing
to increase by 12%, from an                                                                                                       amount of companies making a policy
                                   Survey participants can respond to more
average of 7.6 flights per year    than one option.
                                                                                                                                  decision to travel in business class.
                                                                                                                                  Business class services are already more
today to 8.5 by 2015. It is
                                   Trust in the brand and the route offered       In addition, an increase in long-haul           popular among those making long-haul
thought people will travel         have replaced reliability and comfort as       flights may be driving an increasing            flights, giving us a clear indication that
longer distances, with the         the main reasons why people choose             desire for improved services, both on           an increase in global business travel will
number of people taking            a particular airline. This is in part due to   board and after check-in. It is predicted       boost the use of premium services.
                                   the airline industry, and particularly the     that by 2015 half of all business travellers
seven or more long-haul
                                   low-cost sector, becoming much more            will consider improved services an
flights per year predicted         brand driven and the growing trend for         important reason to choose an airline
to increase from 6% in             travelling longer distances.                   (up from 31% in 2005/06). While cost
1996/97 to 14% in 2015.                                                           has been mentioned as a key reason for
                                                                                  choosing an airline in 2005/06, it is likely
                                                                                  to become less important in the future.
                                                                                  It is also likely that the ability to work on
                                                                                  board and use technology whilst in flight
                                                                                  will become increasingly important.
                                                                                                                                                                           11
This trend towards business class is         In 2005/06, when asked, ‘If you choose        Use of remote technologies                 Levelling-off of low-cost airlines
already being seen with the launch of        British Airways to fly business class,
                                                                                           As the use of mobile technologies and      Low-cost air travel is not expected to
two new airline companies, Maxjet and        why?’, the main reasons given were:
                                                                                           ‘blue-tooth’ increases, transport          increase further, with the level of
Eos, whose aircraft took their maiden
                                                                                           providers will have to ensure they         business travellers who have used these
flights in late 2005. They fly between        Trust in the airline               44%
                                                                                           provide a conducive environment for        services staying at the 2004/05 level of
New York’s JFK and London Stansted
                                              General comfort e.g. flat-beds,              business travellers working on the move.   74% through to 2015.
and offer a luxury service to all their
                                              space for working               44%          Provision of technologies such as power
passengers at relatively lower prices in                                                                                              This levelling-off will be seen as a result
                                                                                           points and internet access will be key.
the hope of taking customers away from        The routes flown                   39%                                                  of the low-cost travel market nearing its
British Airways, Virgin Atlantic and the                                                   Airlines are already harnessing            saturation point, the growing popularity
                                              Frequency of flights               32%
big US carriers.                                                                           technology to make in-flight internet      of business class travel (particularly for
                                              Frequent-flier schemes             28%       access possible. For example, satellite    long-haul flights) and the perceived
Comfort and space for working will
                                                                                           services that allow internet access        difficulties associated with low-cost.
continue to become increasingly              Survey participants can respond to more
                                             than one option.                              on board (e.g. Connexion) are now          Some of these disadvantages were cited
important and if airlines were to stay
                                                                                           being used on major airlines such          by business travellers in 2004:
exactly as they are today, it is predicted
                                             Perceptions of the value of airlines will     as Singapore Airlines and Lufthansa.
that approximately 50% of people would
                                             improve as a result of enhanced in-flight     Direct-to-ground broadband access is        Airports are not
cite British Airways as their chosen
                                             services and new airlines offering            being adopted by established airlines       centrally located                  18%
airline in 2015. However, increasing
                                             business class services at more               Virgin Atlantic, Cathay Pacific and
competition from other airlines such as                                                                                                Poor standard of service           8%
                                             accessible prices. It is envisaged that the   Northwest Airlines.
Virgin Atlantic, Eos and Maxjet may well                                                                                               Often delayed                      8%
                                             number of people citing business class
temper this growth.
                                             airlines as value for money will rise from                                                Not offered low-cost by
                                             a fifth (20%) in 2004/05 to nearly                                                        their Travel Management
                                             a third (32%) in 2015.                                                                    Company (TMC)                      6%

                                                                                                                                      Survey participants can respond to more
                                                                                                                                      than one option.

                                                                                                                                                                                12
Rail travel in 2005/06

The number of people                           If you prefer to travel by rail for                                                                                                                What percentage of your train travel   What would make you travel by rail?
                                               business, why?                                                                                                                                     is taken in first class or business
travelling by train in the UK
                                               80                                                                                                                                                 class carriages?                       50
is greater now than at any                           72%
                                               70                                                                                                                                                                                              43%
time in the last 40 years,                                                  64%                                                                                                                        22%                                                      40%
                                                                                                                                                                                                                                         40
according to 2005 figures                      60                                                                                                                                                                                54%

from the Association of                        50                                                            47%
                                                                                                                                                                                                                                         30                                            29%
                                                                                                                                                                                                                                                                                                            27%
Train Operating Companies                      40                                                                                                                                                                                                                                                                         24%
                                                                                                                                                                                                  8%
(ATOC). More than one                                                                                                                                                                                                                    20
                                               30
                                                                                                                     24%
billion train journeys were                                                                                                                                                                        4%
                                               20                                                                                                  18%
made in 2003, the highest                                                                                                                                                                              5%                                10
                                                                                                                                                                                9%
                                               10                                                                                                                                                            7%
yearly number since 1962.                                                                                                                                                               5%

                                                0                                                                                                                                                                                         0
                                                      Comfort/ease of use
                                                                                Arrive at destination less
                                                                            stressed and more refreshed
                                                                                                             Speed

                                                                                                                     Flexibility/ease of booking

                                                                                                                                                   Availability of technology

                                                                                                                                                                                Other

                                                                                                                                                                                        Cheaper

                                                                                                                                                                                                                                                Faster trains

                                                                                                                                                                                                                                                                More regular service

                                                                                                                                                                                                                                                                                       Tidier and cleaner

                                                                                                                                                                                                                                                                                                            E-ticketing

                                                                                                                                                                                                                                                                                                                          Technology on board
                                                                                                                                                                                                    Under 10%        54%
Although the majority (37%) of
                                                                                                                                                                                                    10% to 30%       7%
business travellers prefer to travel by car,
                                                                                                                                                                                                    31% to 60%       5%
nearly a third (32%) prefer to travel by
                                                                                                                                                                                                    61% to 90%       4%
rail than any other form of transport.
A further 29% like to fly.                                                                                                                                                                          Over 90%         8%
                                                                                                                                                                                                    Not stated       22%
                                                                                                                                                                                                                                         Survey participants can respond to more
                                                                                                                                                                                                                                         than one option.
                                               Survey participants can respond to more
                                               than one option.
                                                                                                                                                                                                                                         16% said that nothing would encourage
                                               On average, 22% of business rail travel is taken in a                                                                                                                                     them to use rail services more.
                                               premium class carriage, but more than half (54%)
                                               take under 10% of their rail travel in this class.                                                                                                                                                                                                                                               13
Rail travel to 2015

By 2015, it is predicted that   First class rail travel                         Rail travel outside UK
the number of people who        It is predicted that first class travel will    High-speed Eurostar trains link London
claim to regularly travel by    increase slightly and then level off with       with mainland Europe and they too are
                                approximately a quarter of people (25%)         due for improvement in the future. The
rail will go down from 34%
                                travelling this way in 2015, stemming           opening of the Channel Tunnel Rail Link
to approximately a quarter      the decline seen from 35% in 1996/97            extension will take high-speed trains
(25%), as the need for          to 22% in 2005/06. Likely drivers will be       into Kings Cross for the first time.
travelling shorter distances    a recovery in the UK economy and the            Mainland Europe will only be two hours
                                growing need for improved services and          away by train. These developments will
declines in light of the        better working conditions on board.             no doubt make London an increasingly
new technologies.                                                               attractive destination for international
                                Rail companies such as GNER are                 business and will also encourage
                                already improving the service and               longer-distance rail travel outside of the
                                facilities on board their trains through        UK in 2015. Business class services are
                                the introduction of quiet coaches,              also likely to increase in popularity for
                                higher quality catering and technology          this type of journey.
                                power points. Likewise, Virgin Trains has
                                introduced a new fleet of ‘Pendalino’
                                trains designed to travel at higher
                                speeds, along with improved customer
                                service and facilities. By 2015, it is likely
                                that expectations will continue to
                                increase, pushing companies to improve
                                services still further.

                                                                                                                             14
Travel purchase in 2005/06

Over a third (37%) of             How far in advance do you book           When business travellers choose to book    What do you think of your
                                  your business travel?                    their tickets in advance, they are more    company policy?
business travellers self-book
                                                                           likely to be able to purchase discounted
their travel online, 31% have                     4% 1%   9%               tickets. Currently one in three business
                                                                                                                      25
                                           3%
an external Travel Management                                              travellers (33%) choose discounted               21%
                                                                           tickets compared to 21% who choose         20
Company and 10% use an            31%                                18%
                                                                           fully flexible.                                                 17%
internal business travel agent.                                                                                                                                 15%
                                                                                                                      15
A further 14% use an intranet                                              More than one in three employees
                                                                                                                                                                               12%
                                                                           are not given a company policy when                                                                                     11%
facility and 2% buy direct on
                                                                           booking business travel.                   10
day of travel.
                                                                                                                       5
                                                               34%
                                                                                                                                                                                                                      2%

                                    Over 1 month                     9%                                                0

                                                                                                                            Provides the
                                                                                                                            best options

                                                                                                                                           Removes the hassle

                                                                                                                                                                Provides the
                                                                                                                                                                 best prices
                                                                                                                                                                                Restricts choice
                                                                                                                                                                               when purchasing

                                                                                                                                                                                                   Can be expensive

                                                                                                                                                                                                                      Other
                                    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%                                               Survey participants can respond to more
                                                                                                                      than one option.

                                                                                                                      Employers organise business travel
                                                                                                                      insurance for two in three employees (61%)
                                                                                                                      who travel for business. The remainder
                                                                                                                      are left to organise it themselves.     15
Travel purchase to 2015

The internet and intranet        Moreover, the number of professionals      A survey conducted in 2005 for the
                                 who are required under company policy      Future Foundation among 2,000
are now the most popular
                                 to use the internet to book business       consumers who shop both online and
methods of booking               travel increased from just 2% in 2003/04   offline, identified that approximately
business travel with over half   to 28% in 2004/05. This is predicted       three-quarters (73%) of consumers
(51%) booking in this way.       to grow further still to approximately     are more likely to browse to find the
                                 50% by 2015, although a ceiling on         best deal when they are shopping online
It is predicted the number of    this growth is likely as needs will        than when they are shopping on the
people booking online will       still continue to be met by Travel         high street. It is hypothesised that this
continue to increase,            Management Companies (TMCs).               will also apply to travel purchases in the
                                 The extensive network of such agents       business community, although perhaps
reaching approximately
                                 across the UK can offer knowledge          to a lesser extent as the money is not
70% by 2015.                     and services which internet booking        coming from an individual’s own pocket.
                                 portals cannot.
                                                                            Increasing processing speeds and
                                 Nearly two thirds (64%) of business        broadband access only serve to augment
                                 travellers who booked business travel      this speed of uptake of e-ticketing and
                                 in 2004/05 cite convenience as the         e-commerce in the business travel sector.
                                 main reason for using their chosen
                                 method, with a further 16% citing a
                                 need to manage travel costs. The nature
                                 of certain internet websites allows
                                 people to deal-seek and perhaps
                                 become more fickle as a result.

                                                                                                                         16
Hotel bookings in 2005/06

Business travellers spend an    In 2005/06, 58% of business travellers     If you haven’t stayed in a budget                                                                                              Over three-quarters (79%) of business
                                used a budget hotel compared to 61%        hotel, why?                                                                                                                    travellers are influenced primarily by
average of £99.60 on a hotel
                                in 2004/05, the second decrease seen                                                                                                                                      both price and location when booking
per night on a business trip,   during the last three years. Those using
                                                                           50
                                                                                                                                                                                                          a hotel, over a quarter (27%) by the
up from £93 in 2004/05.         budget hotels are prudent, with half             42%                                                                                                                      facilities available and 10% would
                                believing they provide an adequate         40                                                                                                                             always choose a chain hotel. Nearly a
Londoners, perhaps used
                                service for their needs. Location is the                                      34%                                                                                         fifth (17%) are restricted by company
to higher prices, spend the     deciding factor for 44% and 35% book                                                                                                                                      policy when making their choice.
                                                                           30
most at £115.70 per night.      budget hotels due to cost savings (up
                                from 24% in 2004/05). For 10% it forms
                                                                           20
                                part of their company policy.
                                                                                                                              15% 15%
                                                                                                                                                                             12%
                                                                           10                                                                                                                     7%

                                                                            0

                                                                                  Lack of extras/facilities

                                                                                                              Poor location

                                                                                                                              Company policy

                                                                                                                                               Doesn’t reflect my position

                                                                                                                                                                             Uncomfortable beds

                                                                                                                                                                                                  Other
                                                                           Survey participants can respond to more
                                                                           than one option.

                                                                                                                                                                                                                                                   17
The use of technology in 2005/06

When looking at the use          Which of the following do you use                                                                                                                                           The technologies which had the
                                 when travelling for business?                                                                                                                                               biggest impact in 2005/06 were:
of technology by business
travellers, the last 12 months   80                                                                                                                                                                          100

have seen portable DVD           70    66%                                                                                                                                                                          84%
                                                                                                                                                                                                             80
players and music players        60
                                                  60%
                                                                                                                                                                    2005/06
having an impact for the first   50                                                                                                                                 2004/05                                  60
time, as has 3G technology                                    40%
                                                                            42%
                                 40
albeit at a lower level.
                                                                                          29%                                                                                                                40                        36%
                                 30                                                                                                                                                                                                                        32%
                                                                                                                23%
                                                                                                                                                                                                                                                                                26%
                                 20
                                                                                                     13%                                                                                                     20                                                                                         14%
                                                                                                                                           10%                          9% 7%
                                 10                                                                                                                                                           7%
                                                                                                                                                                                                                                                                                                                           5%
                                                                                                                                   N/A                   N/A                                         N/A
                                  0                                                                                                                                                                            0
                                          Laptop and mobile
                                         phone power points

                                                                   Facilities to enable
                                                               remote access to email

                                                                                            Wireless hotspots

                                                                                                                  Portable music players

                                                                                                                                             Portable DVD players

                                                                                                                                                                             Broadband on
                                                                                                                                                                          planes and trains

                                                                                                                                                                                               3G handsets

                                                                                                                                                                                                                     Access to email

                                                                                                                                                                                                                                       Tele-conferencing

                                                                                                                                                                                                                                                           Video-conferencing

                                                                                                                                                                                                                                                                                Remote access/virtual
                                                                                                                                                                                                                                                                                   private networking

                                                                                                                                                                                                                                                                                                        Web-conferencing

                                                                                                                                                                                                                                                                                                                           Video mobile phones
                                 Survey participants can respond to more                                                                                                                                     Survey participants can respond to more
                                 than one option.                                                                                                                                                            than one option.

                                                                                                                                                                                                                                                                                                                                                 18
For those unaffected by technology, the    While technology is encouraging remote
majority (87%) believe it cannot replace   and virtual interaction, face-to-face
face-to-face dealings, 4% say it is        contact will still continue to be important
unreliable (down by 5% from last year)     in 2015. One of the main reasons people
and just 2% do not understand it.          are currently travelling more is for face-
                                           to-face contact, up from 8% in 2004/05
                                           to 13% in 2005/06. It is believed that
                                           business across international borders
                                           incurs issues such as cultural or language
                                           barriers and incompatible time zones
                                           all of which are better overcome with
                                           face-to-face contact. There is a sense
                                           that remote communications – even
                                           with visual presence – cannot replace
                                           face-to-face contact.

                                                                                         19
Work-life balance

Over three-quarters (78%)        Of those who enjoy travelling for        Of those who don’t enjoy travelling for                                                                                    When asked the worst thing that has
                                 business, 66% like the variety, 62%      business, the following are cited as the                                                                                   happened whilst travelling for business,
of business travellers enjoy
                                 appreciate the opportunity to see the    main reasons:                                                                                                              nearly a third (30%) cited cancellations,
travelling for business. Along   world and 51% enjoy experiencing a                                                                                                                                  missed connections and delays. Stolen,
                                                                          60      58%
with Londoners (80%), those      new culture. Frequent-flier schemes                                            55%                                                                                  lost and broken items caused distress
in the South West (80%)          boost enjoyment for 15% of travellers,                                                                                                                              for a further 17%, whilst 4% were made
                                                                          50
                                                                                                                                               46%
                                 while 8% like the prestige.                                                                                                                                         miserable by illness and 3% experienced
and the South East (80%)                                                                                                                                                                             extreme weather conditions. 3% even
                                                                          40
are the biggest fans.                                                                                                                                                                                found themselves in an emergency
                                                                                                                                                                                     32%
                                                                          30                                                                                                                         situation.

                                                                          20

                                                                          10

                                                                           0

                                                                                   It is tiring and stressful

                                                                                                                It intrudes on personal life

                                                                                                                                               I don’t like staying away from home

                                                                                                                                                                                     It is mundane
                                                                          Survey participants can respond to more
                                                                          than one option.                                                                                                                                                  20
For further media information, please contact Sara Barrow from Lexis PR on 0207 908 6488.

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

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Telephone 0870 154 0134*, Fax 01642 663636
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BCD27866BROB1 PDF. 11715FM. Created: 01/06.                                                                                                   21
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