Executive Summary
In 1997, UK expenditure on business travel services was £5.85bn, generated from 15.5 million domestic trips and 7.2 million overseas trips. Between 1993 and 1997, the total number of trips increased by 51.3% while expenditure (excluding international air fares) increased by 45.3%. Expenditure is growing at a slower rate than trips because the real cost of travel is falling and the average duration of trips is decreasing.
Although the number of domestic business trips (excluding day trips) is more than double that of outbound trips, the value of the outbound market is greater, totalling £3.35bn (compared with £2.49bn) in 1997.
In 1997, the value of overseas residents’ expenditure on business travel services to and within the UK was £3.5bn, generated from 6.3 million trips. Between 1993 and 1997, the number of trips increased by 34.9%, compared with an increase in expenditure of 45.3%.
The hotel industry is highly fragmented, despite growing concentration in the business sector. The largest UK hotel group, Granada, has less than 5% of available commercial bedspace in the UK and the top 15 have less than 19% market share. In recent years the budget sector has grown significantly and the four-star sector has rationalised. In 1997, UK hotels achieved their highest occupancy factor since 1977.
British Airways dominates the UK airline industry, carrying 59.8% of all scheduled airline passengers uplifted by UK airlines. Similarly, Heathrow dominates in the airport sector with 51% of scheduled passengers and 39% of all passengers (including charter flights). The top three airports accounted for 71.8% of scheduled passengers in 1997.
Business travellers tend to be older, wealthier and more likely to be male than other travellers. However, consumer research shows that the percentage of international female business travellers is increasing.
Key Note forecasts that domestic, outbound and inbound business travel trips will increase by 15.7%, 15.2% and 23.1% respectively between 1998 and 2002.
Eighth Edition 1998
Edited by Dominic Fenn
ISBN 1-85765-864-7
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