Published on : Wednesday, January 6, 2016
The results of the sixth annual Business Travel Show forecast suggest 2016 could be a challenging year for buyers with budgets increasing at a slower rate, half of buyers worrying about rising travel costs and compliance, new distribution methods and traveller wellbeing causing concern.It’s not doom and gloom for everyone, however, as almost one third of buyers will have more money to spend in 2016, this compares to 32 per cent in 2015. At the same time, a quarter expect budgets to drop, a 5 per cent increase on 2015.
The pressure on buying more for less seems to have lessened for 2016. 44 per cent of buyers will arrange more trips this year, a drop of 6 per cent on 2015, and 19 per cent will arrange fewer trips compared to 14 per cent last year.
76 per cent of buyers will have the same or more to spend on airline travel in 2016. For one third,budgets will increase, the same as in 2015. One quarter (24 per cent) expect budgets to shrink. Last year, just one fifth had less to spend.
The use of low cost carries remains unchanged at 86 per cent.
In 2015, 26% booked more low cost flights, this year it rises to 27 per cent.
The number of buyers booking fewer business class flights increased again, from 38 per cent in 2015 to 42 per cent this year.
The number of buyers operating no time threshold for business flights dropped slightly from 33 per cent to 28 per cent.
One third of buyers will have more to spend on accommodation in 2016, the same as last year. The use of budget hotels dropped slightly. They now account for fewer than 25 per cent of bookings for three quarters (78 per cent) of buyers; down from 70 per cent in 2015.