Maintaining a company’s level of business travel is vital to the individual organisation and has far reaching implications for the state of the economy, according to research released today from the annual Barclaycard Commercial Business Travel Survey.  The survey, now in its 13th year, polled more than 2,200 business travellers across the country, forming a comprehensive picture of the business travel landscape.

Three quarters of respondents (75%) stated that they expect to travel more or the same amount in 2009 compared to 2008 with 50 per cent, of those planning to travel more, citing planned business expansion in the UK (29%) or overseas (21%) as the reason.  The findings illustrate that whilst companies compete to survive and budgets are tightened face-to-face meetings and networking are seen as crucial to keeping businesses going, even if this incurs travel costs.  In addition, 85 per cent believe that face-to-face business meetings are more effective than using technologies such as video and web conferencing.

Market contraction has the worst effects on those organisations and individuals that are most exposed in terms of risk and debt. The converse of this is that small organisations and medium size enterprises in the beginning of their life cycle stand most to benefit from the current stimulus deal and interest rates and there is a real opportunity for entrepreneurs and SMEs in the latter half of 2009.

It is vital that business people continue to travel not only because of the immediate effects of a contraction in the market but also because so many industries and businesses around the globe rely on revenue from business travellers.

Neil Radley, Managing Director of Barclaycard Commercial said:

“The travel and tourism industry is one of the world’s biggest employers with business travel playing a significant role in the industry.   The Barclaycard Commercial Business Travel Survey is a positive indicator for economic recovery with a third planning to travel more in 2009 – this will have a knock-on effect on the economy and the parallel industries that survive because of it.  The fears of the recession have not deterred some businesses from expansion – whilst the media reports stories of businesses downsizing, the Travel Survey shows positive signs for business expansion in both the UK and more globally.”

With the Government’s confirmation in the Budget that the Airline Passenger Duty (APD) is going to rise in November 2009, results from the survey suggest that this is not set to dramatically affect business travel.  84 per cent of the survey’s respondents have not changed their travel plans due to the initial introduction of the APD and 53 per cent agreed that an additional environmental tax should be brought in on airlines.

Reflective of last year’s findings whilst business travel is on the up there are clear signs that businesses are making a conscious effort to cut back where possible.  Those staying in budget hotel accommodation has risen from 53 per cent to 55 per cent, between 2007 and 2008 and Flybe (ranked 4th with a one per cent increase in market share) now joins other low cost airlines easyJet (ranked 2nd) and Ryanair (ranked 3rd) in the top four airlines most used for business travel.  British Airways remains the most used airline for business travel (29%).   In contrast, travel in business and first class has increased by two per cent from last year (13% in 2008 compared to 11% in 2007).

The survey, now in its 13th year, polled more than 2,200 business travellers across the country, forming a comprehensive picture of the business travel landscape.  

6/29/2009 11:07:37 AM UTC    Comments