Taking off Travel blog

What are your 2012 business travel plans looking like? If we’re to believe a recent study commissioned by Deloitte it looks like many business travelers are expecting to take at least the same number of trips next year, if not more. The breakdown is largely age divided with only 16% of travelers over 45 planning to take more business trips next year while 27% of those aged up to 44 think they will travel more. Looking back at the figures for last year it seems that a lot of those surveyed anticipated that this year they would take the same number of trips or more than 2010 also 19% expected to travel less either because of the recession because they had changed jobs.

The survey also revealed some interesting trends in accommodation preferences among the respondents. In the 18 to 29 age group 46% of respondents expressed a clear preference for their favorite brand of hotel even if the location was not quite suitable while that figure fell to 37% for those above 30. Related to that, 49% of those in the over 30 age group felt that levels of service and hotel facilities varied widely among hotels in the same group. Only 39 % of those under 31 felt that way.

There was also interesting data on how business travelers use hotels, with 67% saying that they spent time working in their rooms. However, many of the younger business people spent time in executive lounges and lobbies for work. The younger respondents showed a preference for using automated check-ins but this was only a favored option for 19% of those over 45.

How have business travelers reacted to hotel price increases? By expecting better services and better amenities. This was the view of 61% of respondents. In addition 77% said that they wanted free Internet access as a priority. Like other travelers business travelers are concerned about flight and security delays at airports and these are even bigger issues for them than staff and amenities at hotels. Read the full story here.

(Image: Maurice Koop)

Here are the latest business travel news updates.

GBTA Predicts Slowdown in Business Travel Spending

Travel industry professionals have been energized by an upswing in business travel this year as travel buyers unlocked their wallets, but according to the latest figures from the Global Business Travel Association (GBTA), it’s likely that business travel spending will shrink next year.  The GBTA expects final-year business travel figures to show a 6.9% growth over 2010, with a value of $250.2 billion. Growth for 2012 is expected to be a more moderate 4.3% growth, with a predicted spend of $260.9 billion.

Michael W McCormick, GBTA’s executive director and COO says that this won’t be a dramatic slowdown. He comments that:

“Companies are still investing in travel because they have become smarter and more conscious about the level of business travel that is critical to driving growth,” McCormick added. “They recognize where they cut back too much during the recession and won’t make the same mistakes twice, because they know there is great value in personal relationships and business travel is a critical component in sealing those bonds.”

What growth there will be will come from the increase in the prices of some travel good and services. Spending on group travel is also predicted to slow, registering half the growth of 2011 at 3.5% for 2012.

BTN Annual Airline Survey

In other business travel news, the Annual Airline Survey from Business Travel News is now out. The survey polled 406 high spending travel buyers to assess criteria such as  the value, price flexibility, complaint resolution and customer service of the five largest domestic airlines. Delta was a first-time winner this year, with top ratings in 5 of the 10 assessed categories. The United/Continental group was in second, with US Airways in third, American Airlines in fourth and Southwest Airlines/AirTran Airways in last place.

Scores were generally lower than last year and 36% of corporate travel buyers said service had declined. However, 46% said there was no change. Buyers were generally unhappy with add-on fees and wanted to see better discounts and lower published fares. Buyers felt that flexibility in structuring pricing was one reason that contributed to Delta’s deserved win. Get the full story here.

Park Ride Fly USA – Airport Parking Offer

Finally, some news of our own. Watch this space next Monday for details of how you can get a free $25 Restaurant.com voucher by booking 4 days or more of off airport parking via Park Ride Fly USA. We’ll also update you via Twitter and Facebook.

Business Travel Market, a London-based event for corporate travel buyers, has just ended. Held from 22-23 June at ExCel London, the conference and exhibition enjoyed the presence of major international brands, perhaps drawn by the 25% increase in the hosted buyer program. More than 500 European travel buyers were among the more than 4,000 conference participants.

Paul Deighton, Chief Executive Officer of The London Organising Committee of the Olympic Games and Paralympic Games (LOCOG), was a major keynote speaker, covering the impact of the Olympics on business travel and the business community.

As well as looking at industry trends and indicators, presenters also covered areas such as using social media to improve traveler communications, getting to grips with mobile technology and the use of self-booking tools. More details of the programme are in this Business Travel Market newsletter (PDF).

And if you missed it, don’t worry. You can plan for next year, when Business Travel Market will take place on 13 and 14 June.

Well, it had to end sometime. The drop in the cost of business air travel during the tough economic times of the past couple of years is now behind us. The latest figures from the American Express Business Travel Monitor show that business travel airfares for the first quarter of 2011 are now above those recorded in the first quarter of 2008.  Here are some of the key figures from the report:

• Average domestic airfares increased ten percent (10%) in Q1 2011 vs. Q1 2010 to $247, surpassing the pre-recession average in Q1 2008 which was $233
• Average international airfares increased eight percent (8%) in Q1 2011 vs. Q1 2010 to $1866

“Airfare increases have been expected given the rise in the cost of oil and the return in demand in business travel,” said Christa Degnan Manning, director, eXpert insights research, American Express Global Business Travel. “On top of this, airlines are continuing to form alliances and joint ventures. As prices continue to increase and capacity levels remain tight, companies need to ensure they are following the market, reviewing travel spend and ensuring they are using suppliers and implementing policies that facilitate optimal cost savings opportunities.”

Hotel prices are going up too, due to increased demand as companies continue to emphasize the value of face to face meetings for doing business.

• Average domestic hotel rates increased three percent (3%) in Q1 2011 vs. Q1 2010 to $150
• Average international hotel rates increased four percent (4%) in Q1 2011 vs. Q1 2010 to $238

“With the moderate rate increases we’re seeing this year that are due to increase in demand, companies need to be vigilant in ensuring travelers receive their corporate negotiated rate. Hoteliers are likely to try to continue increasing rates particularly, as we head into the negotiating season. However, companies that keep a close eye on market conditions and benchmarking actual rates paid in key travel destinations will be better positioned to maintain their discounts,” said Manning.

More info on MarketWatch.

Hypersonic travel could be on the horizon if Airbus SAS owner EADS (European Aeronautic, Defence and Space Co has its way. At the Paris Air Show the company revealed plans for a hypersonic jet that could take travelers from Paris to Tokyo in two and a half hours. While strangely reminiscent of the much-lamented Concorde in shape and style, the company hopes the jet will avoid some of the fuel costs that would make the Concorde uneconomical.

It will have  turbojet, ramjet and cryogenic rocket engines and will fly in the stratosphere (105,000 feet) at speeds of Mach 4 plus. Travel will produce zero emissions by using hydrogen and oxygen as fuel.  Biofuel will lift the plane off the ground, getting it to 100,000 feet in only a few minutes.

The plane will carry 50-100 passengers and is expected to be aimed at the business class market – with a price tag to match. A prototype is envisaged for 2020, with commercial planes ready in 2050. Check out the video for more:

More info: Wall Street Journal and Reuters.