1. The Business Travel Environment

2. Introduction
This session forms an introduction to Business Travel Operations.
This unit aims to ensure that learners have a good understanding of the importance of the business travel sector.
The session aims to help you examine the business travel environment.

3. Business Travel & Tourism
Business travel is a growing element of the overall travel and tourism industry.
It is thought to be worth more than £16 billion annually.
In 2001, spending by business visitors exceeded that of leisure visitors.
Business travel and tourism includes a wide range of events and services.

4. Business Travel Characteristics
High quality, high yield (earns more revenue) part of travel and tourism.
Lengthens the high season for leisure tourism destinations in UK.
Year-round sector means more full-time jobs.
More ‘shock-proofed’ against downturns or disasters.
Investment can regenerate urban areas.

5. The Components of Business Travel
Conferences and meetings are worth over £7 billion in This part of the sector includes:
sales conferences
management meetings
annual general meetings
training courses
business presentations and product launches

6. The Components of Business Travel
The market for exhibitions and trade fairs is worth over £2 billion per year.
Trade exhibitions are for buyers and sellers in specific trade sectors.
Public exhibitions attract paying members of the public.
Trade/public exhibitions aim to attract both types of visitor.

7. The Components of Business Travel
Incentive travel is used by organisations to motivate their staff.
Travel rewards cost between £500 and £5,000 per head.
They are usually offered in industries with high profit margins such as cars and financial services.
Qualification for incentive travel is based on achieving agreed goals (usually sales targets).

8. The Components of Business Travel
Corporate events include staff and client entertainment.
Sporting occasions are the most popular for corporate events.
Close links exist between corporate events segment and the contract catering industry.
Market worth between £700 million and £1 billion per year.

9. The Components of Business Travel
The outdoor events segment brings together local authorities, show organisers, event management firms, promoters and venues owners.
With…
Equipment and services firms, consultants, and entertainment agencies.
Putting on thousands of events across the country every year.

10. The Components of Business Travel
These first 5 segments of the industry are known as examples of ‘discretionary’ business tourism.
This means that the organisers have a choice over the destination of their events.
Corporate travel is a ‘non-discretionary’ segment.
This means there is no choice over where it takes place.

11. The Components of Business Travel
Corporate travel is a £6 billion annual market.
Overlap with all other segments of the business travel and tourism industry.
May involve travel by air, rail, coach, car and sea.
Can lead to individual and family travel beyond the business segment.

12. Business Travel Agencies
Business travel agencies share many characteristics with retail travel agencies:
They can be trans-national businesses, national organisations and independent companies.
They may offer a mix of business and leisure travel services.
They have been affected by the rise of internet tourism distribution.

13. Issues in Business Travel
Again, many of these are the same as those faced by retail travel agencies:
Cuts in commission paid to travel agents.
Non-commission fees for travel agents.
The rise of the low-cost airlines.
Direct sales to customers via the internet.

14. Conclusion
Business travel is a highly valuable part of the travel and tourism industry.
Not only does it continue to grow, but average spending by business travel customers is higher than in the retail sector.
Venues and cities compete through ‘place marketing’ to appeal to customers in the sector.