Trans RINA, Vol 156, Part C1, Intl J Marine Design, Jan –Dec 2014
A study of the UK business air travel market by the Civil Aviation Authority [16] identified that Heathrow had 24.3 million business travellers, 39% of the UK total in 2007. The total for London airports was 38.9 million, 62% of the total UK market. London airports growth between 1996 and 2007 was 3% an increase of 108 million passengers. The UK to US business passengers market sector was 3.7 million in 2007. It represented 11.1% of total international business passengers, and showed 36% growth from 1996 to 2007. The long-haul scheduled business travel grew from 8 million in 1996 to 11 million in 2007, of which more than 40% was North Atlantic routes particularly to/from New York JFK. The JFK volume was 0.72 million in 2007 representing 8.2% of long haul total, a growth of 36% since 1996. In the same year Newark had a volume
of
representing 3.3% of long-haul total, showing a 71% growth since 1996.
Passenger surveys reveal that the proportion of female business travellers has remained at around 20% since 1996, and that over two–thirds of business passengers describe the reason for their trip as either ‘attending internal company business or ‘meeting external clients’.
Table 13 Proportion of business passengers travelling long-haul in different classes [16] How much of each cabin is filled by business passengers?
Which cabin do business passengers use?
Ticket Type First/Business/Club
Premium Economy n/a Economy
Total long haul in Table
1996 2007 1996 2007 % % %
%
79 73 34 23 56 n/a
9
28 20 66 69 36 25 100 100
There has been a reduction in the number in business class who are travelled on business in 2007 compared to 1996, shown
13. Business passengers
predominantly lied within a narrower age band than leisure passengers, with 31% belonging to the 35 to 44 age group and 84% in total falling into the wider 25 to 54 age bracket. This compares with leisure passengers, whose largest segment (22%) came from the younger 25 to 34 age group with only 58% in total falling into the wider 25 to 54 age bracket. However, both business and leisure passenger groups had a similar median age of around 36 years. When looked at by gender, there was a notable difference in the age distribution of business passengers. In 2006, more male business passengers belonged to the older age groups than female passengers. While almost 40% of male business passengers were aged between 45 and 64, only 26% of female business passengers fell within this
older age band. In 2006 income by gender showed less than 10% Female earn
over £115,000, less than 20% male earn over £115,000. Income by carrier type showed less than 20% of UK business passengers using full-service carriers earn over £115,000. The main purpose of business in 2007 for full service carriers was: 36% attending internal business; 30% meetings with customers; 11% general business; 10% conference/congress; 4% overseas employment; trade fair/ exhibition 3%.
2.2(a) Future trends and Demand Drivers 0.27 million,
Videoconferencing is having an increasing effect in replacing travel to facilitate meetings within international companies. However, where external clients are involved, companies still value face-to-face meetings rather than
videoconferencing. As communication technology international advances it facilitates a
greater pace of globalisation, increasing the demand for business air
travel. Enabling communication between
distant locations can initiate new business opportunities. Communications technology enables employees to work remotely from the office reducing loss of productivity due to business travel [16].
There is expected to be increased focus from businesses on the environmental
issues. For many organisations,
travel makes up a small proportion of their overall carbon emissions. Organisations where travel is a significant proportion of their overall carbon emissions are typically service oriented companies, where business travel is a necessity to maintain client relationships. Research and surveys on company executives and business travellers have identified the main reasons for business travel as:
Customer retention Converting prospective customers into clients Establishing new contacts and building relational networks
Maintaining customer relationships and expanding the customer base
Investment in human capital (attending conference/trade show)
Potential returns business deals.
from initiating and/or closing
CAA [16] reported on a study by Oxford Economics [18], which was based on a combination of surveys of executives and business travellers in the US. It carried out an econometric analysis to quantify the effects of business travel on corporate performance, in terms of cost and contribution to the business. The study found significant positive relationships between business travel and corporate performance in terms of productivity and improved profitability. The surveys indicated that face- to-face meetings are necessary to building successful business
relationships with existing and prospective
customers. Respondents estimated without such in- person meetings, more than 25% of their business could be lost and a much lower rate in converting prospective customers into new customers reduced from 40% to 16%
C-80 ©2014: The Royal Institution of Naval Architects
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