BRITAIN
GETS DOWN TO BUSINESS
MARK FRARY INTRODUCES THE ANNUAL BBT GUIDE TO THE UK’s TOP TMCs
2014 WAS THE YEAR that things started to return to normal – or at least a semblance of normality. The British economy de- livered good growth and started to look relatively lively as other economies in Europe and beyond moved sluggishly. As a result, British executives travelled more
and travel management companies (TMCs) enjoyed a return to business as usual. So are we back to where we started before the downturn hit? The answer is
yes...and no. Business travel volumes have recovered to some extent but some things have changed, perhaps forever. Attitudes to travel have altered and companies have embraced cost- saving alternatives to travel, particularly in relation to internal meetings. Business class and high-end hotels are no longer the rule but the exception. And our research this year shows once again the vital importance of technology, and TMCs are clearly having to invest heavily to meet client expectations. TMCs are also recognising the need for mobile solutions in the hands of business travellers.
SNAPSHOT SURVEY Each year, we ask our surveyed TMCs for their views on the state of the market and the year ahead. Their aggregated answers are shown in the charts on page 58. TMCs are positive about the opportunities
for growth, with more than half of those surveyed expecting growth of more than 10 per cent in 2015. Once again, TMCs
58 BBT MAY/JUNE 2015
overwhelmingly expect this growth will come at the expense of their competitors rather than general growth in the market. Every TMC puts winning new business on its priority list, but more than three quarters are also focused on improving their product and service offerings to do that. Over half of TMCs also expect to win more business for their meetings and events divisions. And this year, for the first time, we have asked TMCs about where their revenues come from. Our chart shows that TMCs work overwhelmingly on a transaction fee basis. TMCs say their biggest challenge is recruit-
ing skilled staff. Most students studying travel and tourism in the UK rarely hear about the opportunities in business travel and are taught about the “more exciting” world of leisure. The first crop of graduates emerged from The Giles Business Travel Academy in 2014, but many more are needed. Other worries for TMCs this year are continuing low margins in the business, as well as the threat posed by direct booking with suppliers.
THE TYPICAL TMC The top 50 TMCs in our 2014 survey have combined business travel sales of £8.6 billion, up from £8.2 billion in 2013. This equates to an average of £171.6 million, up from £163.3 million last year. The average TMC handled 252,968 trans-
actions at an average value of £430.50, and it employed 170 full-time equivalent staff.
BUYINGBUSINESSTRAVEL.COM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128