2013 Industry Pulse: Business Travel Buyers Sentiment – Europe
Statistics & Metrics
Date: March 7, 2013
About this Resource
•Travel Buyers opinions in Europe have taken a downturn. They are less positive about the health of the overall economy in their country and fewer believe it will improve over the next year, compared to September 2011.
•However, they frequently feel business travel conditions are the same. Most also have expectations the business travel industry will be in the same shape one year from now.
-Travel Buyers in Europe most often feel the business travel industry is performing the same as one year ago (49%). However, significantly fewer European Travel Buyers believe the industry is performing better than one year ago compared to the percentage who felt this way in 2011 (20% vs. 51%).
-In 2012, while a majority feel the business travel industry in Europe will be in the same shape one year from now (57%), just 22% feel it will be in better shape, significantly less than in 2011 (36%).
•The average travel spend in 2011 for companies represented in the sentiment survey in Europe was €52.2 million and 31% of this spend is attributed to airfare.
•Travel Buyers estimated total spend did not show much improvement in 2012 (0.23%), most likely due to increases in travel prices.
•Buyers also expect a minimal increase in their budgets in 2013 (0.71%), which is not enough to keep pace with expected rate / fare increases.
•Although more trips (37%) and more travelers (28%) continue to increase travel spend among Travel Buyers in Europe, pointing to some bright spots in the business travel industry, increased airline fees (47%) and higher rates / fares (38%) are the most often cited contributors to larger travel budgets.
•Evidence that higher rates and fees are impacting travel budgets is found in the average rates / fees that Travel Buyers in Europe expect to pay 2013. With the exception of domestic car rentals, Travel Buyers estimated prices increased between 1.0% and 3.1% in 2012 and will increase a similar amount in 2013 (between 1.0% and 3.0%).
•Travel Buyers estimated hotel prices showed lower increases than airfares in 2012 and will experience lower increases than airfares in 2013.