THE BUSINESS TRAVEL MAGAZINE I 39 The Review ➔ Volumes bouncing back
A STRONG bounceback in business travel over 2010 is revealed in new statistics from AirPlus, as air fares continue to rise. Research from the travel payment specialist showed average flight ticket prices globally are on the increase – at 523 euros in 2011 to date against 499 euros in 2010 – due to a greater use of business class as the tightening of travel policies begins to be reversed. This premium cabin accounted for eight per cent of the total in 2009 when the recession was in full swing and in 2010 rose to 14 per cent of the total. Travel expenses have followed
a similar path, rising 28 per cent in 2010 and by 33 per cent in the first two months of 2011. Corporate rates negotiated
by travel managers last year averaged 18 per cent savings on published fares, the highest being on air and hotel, and showing room for improvement across all buying categories. AirPlus reckons 77 per cent of travel managers worldwide will continue to press for savings despite the economic upswing. The UK picture echoes the global one and is continuing the upswing in 2010. So far this year, flight volumes are up by 13 per cent, average ticket prices are up
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27 per cent, hotel stays up by 16 per cent, corporate card volumes up by 20 per cent and company account volumes have risen by 26 per cent. “2010 was the perfect rebound,” says Yael Klein, managing director of AirPlus International UK. UK average flight ticket prices
taken in February 2011 are at £420, up from £400 in 2010 and £401 in 2009 but not quite up to the high of £453 in 2008. UK business class volumes shadow global levels, at nine per cent, 14 per cent and 18 per cent over 2009, 2010 and 2011 respectively. Positive changes in UK travel behaviour are tracked in the
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AirPlus figures on days between booking a business class ticket and departure, showing 11 days in 2009, 13 days in 2010 and rising to 16 days in 2011. The equivalent figures for economy class bookings are less impressive, at 21 days ahead in 2010 and 22 ahead in 2011, but still a way off the average of 27 days in advance back in 2009. The proportion of UK travel managers who would like to receive invoices on paper in future has fallen from 18 per cent to 14 per cent, while those wanting electronic invoices has risen more, from 54 per cent to 62 per cent.
THE LOWDOWN IN BRIEF
• MORE help for SMEs and new entrants has come in the form of the latest resources release from ITM. Members can now access three different RFP templates – on airlines, hotels and TMCs – plus toolkits on Pricing Models and Risk & Reward Mechanisms.
• KEY Travel has released the findings of its 2010 survey covering travel habits of the not-for-profit sector. Based on feedback of over 1,000 customers – including charities, NGOs and academic institutions – the results showed only 16 per cent of respondents prefer to book travel online, with 44 per cent preferring email and 39 per cent opting for the telephone. When asked to project future travel bookings, 91 per cent say they expect travel volumes to increase or remain the same.
• RESEARCH from American Express Corporate Membership Rewards reveals that business travel remains essential to doing business for SMEs. Some 74 per cent of respondents said that, despite current economic conditions, travelling to meet clients face-to-face is critical to their success in a competitive corporate environment. The survey also revealed that smaller companies under pressure to make savings believe they often lose out on the discounts and savings enjoyed by larger firms. Over 60 per cent of respondents believe they could do more to achieve further savings from suppliers.
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