All News

THREE QUARTERS OF BUYERS WORRIED ABOUT COSTS FOR 2012

05/01/2012 00:00:00
The biggest issue facing business travel buyers as 2012 takes off continues to be cost.

A survey of 252 corporate travel buyers and procurement managers by the Business Travel Show revealed that 73 per cent said managing cost would continue to dominate both business travel generally and buyers’ habits directly throughout the next 12 months.

The other top four issues facing the industry are the Olympics, the introduction of stronger travel policies, the economy and the rise in travel alternatives.

“As we head into a year of economic uncertainty and increasing hotel, fuel and ancillary fees, such as APD, it’s no surprise that buyers are worried about keeping costs down,” commented David Chapple, Business Travel Show event director.

“The impact of the Olympics on hotel availability, commuting disruption and reduced demand also explains why buyers are expecting to feel a ripple effect from London staging such a massive event.”

Buyers also claimed the biggest change in their buying for 2012 will be greater cost scrutiny, followed by enforcing policy compliance (21%), fighting for more from suppliers (19%), introducing new technology (online booking, mobile, etc.) (17%) and increasing the use of travel alternatives (3%). 

When asked what their top tips were for getting better deals as budgets continue to be squeezed, more than one third of buyers insist on booking ahead; one in three said shop around; almost a fifth recommend good old-fashioned haggling; eight per cent demand increased policy compliance and five per cent spend less by travelling less. 
 
And in light of the pressure to manage costs closely and reduce demand for travel, 99 per cent of buyers are now using travel alternatives as, or more, frequently as they did one year ago.

“Cost has been the overriding issue facing business travel since we entered recession, but there is good news on the horizon – the market is looking much healthier and, though buyers are being cautious, this survey also shows that one quarter of budgets are on the increase,” added David Chapple.

“Two of the biggest tips buyers shared were ‘shop around’ and ‘negotiate’, and with the most comprehensive and diverse number of exhibiting suppliers at any corporate travel event in Europe, there is no better place to do this than at the Business Travel on 7 and 8 February 2012.

“More than 200 world class suppliers and 6,000 top end buyers will be in the hall. It’s the only chance each year for corporate buyers to find the information, innovation, introductions and inspiration they need to make more confident and informed buying decisions; to increase efficiency, reduce costs, enhance performance and boost their business network.”

The survey results are as follows:

What is the overriding issue facing business travel in 2012?
1. Cost 73%
2. The Olympics 11%
3. Introducing stronger policies 8%
4. The economy  4%
5. Rise in travel alternatives  4%

What will be the biggest change in your travel buying for 2012?
Cost and expenditure  30%
Enforcing policy compliance  21%
Getting more from suppliers  19%
Introducing new technology  17%
Increasing use of travel alternatives 3%

What is your top tip for getting more with a reduced budget?
Book ahead  38%
Shop around   30%
Haggle and negotiate 18%
Force travellers to stick to policy  8% 
Travel less  5%  
  
How frequently are you using travel alternatives compared to one year ago?
• More 50%
• The same  49%
• Less 1% 

To register for a free visitor badge please visit www.businesstravelshow.com

To apply for a place on the Hosted Buyer Programme please email hosted@businesstravelshow.com 

-end-

About the Business Travel Show:

The Business Travel Show runs from 7-8 February at Earls Court in London. With in excess of 200 exhibitors and 6,000 buyers responsible for a travel purse of more than £10.3billion, the Business Travel Show is the flagship event in the European industry calendar. London is the sister show to business travel events in Dusseldorf and Dubai and runs alongside complementary event Travel Technology Europe.

For more information:

Please contact Charlotte Le Rougetel or Ravi Vijh at Bastion
020 7269 7900
bts@bastion.co.uk

Follow us on www.twitter.com/btshowlondon
Join us on LinkedIn http://www.linkedin.com/groups?mostPopular=&gid=2048219
Like us on Facebook http://www.facebook.com/businesstravelshow