1. BREXIT & International Air Travel
Kevin Harrison

2. Business Travel Made Easy
What Do We Know?
Air Travel costs will rise – but not just because of Brexit
A weaker pound will affect travel costs for UK outbound travellers
Low Cost Airlines are likely to be the most affected – very EU centric
The UK is already benefiting from greater in-bound travel and tourism coupled with export opportunities as a result of the weakening pound
EU legislation on freedom of movement and open skies agreements need careful negotiation
A lot of uncertainty that will temper the market
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3. Business Travel Made Easy
Points to Consider
Despite any anticipated rises - Air Travel is at its most competitive in years
Average fares have fallen 40% in the EU, routes have increased by 180%
Airport taxes/charges and fuel surcharges have a major bearing on future costs
The value of International business travel shouldn’t be under-estimated for its ROI on business and economic growth
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Some interesting facts:
A recent GTMC Oxford Economics study found that the R.O.I of face to face meetings is vital- up to £5.34 for every £1 invested
Business Travel plays a greater role in driving exports as an ROI compared to imports
Forecasts show that International air travel worldwide will continue to increase but the UK market will flatline or decline slightly due to Brexit uncertainty
Low cost airlines are hugely influential in opening up trade routes for tourism and business – the outcome of EU open skies agreements will be vital
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Greater Air connectivity leads to increased international trade….
1% increase in air connectivity results in an increase in total trade of 0.10% or £600m
The UK lags behind many other EU airport hubs such as Schiphol, Frankfurt etc. – airport infrastructure development is vital
Despite an improved picture we haven’t returned to pre 2008 air travel volumes for business and that will slow down growth as business travel leads to business growth.
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6. Business Travel Made Easy
Good Travel Management joins the GTMC
Political Lobbying and representation
New Routes – Support and recommend new air routes to develop international trade
Heathrow Runway expansion
HS2
Taxes and Airport Charges in the UK are high and need to be reviewed to encourage more international trade and travel
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What are the forecasts and opportunities?
Two Way Impact - Inbound traffic may offset the negative outbound traffic and keep air fares and air freight costs at a level or even more competitive
UK Business Travel – domestic business travel will continue to grow – coupled with increased inbound travel – more demand for UK hotels will potentially push up room rates so planning is needed
Freedom of Travel - compensation for delayed flights - an open skies agreement are vital
A slower market may make it more competitive for the short term but will lead to lower capacity and less routes
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Outcomes
Post Brexit – the best possible outcome for air travel is that the UK can continue to trade in much the same way
Post Brexit – the worst possible scenario – and least likely – is that EU members will erect trade barriers or freedom of movement barriers.
Be prepared to pay more – but also be aware of what we used to pay, how competitive air travel is now, and the ROI of business travel in general on the UK economy
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