Your SlideShare is downloading. ×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Amex 2012 european business travel barometer

736
views

Published on

The 2012 barometer opens in a period of economic uncertainty in Europe, with negative GDP growth in the Eurozone despite a range of contrasting situations. …

The 2012 barometer opens in a period of economic uncertainty in Europe, with negative GDP growth in the Eurozone despite a range of contrasting situations.
Despite this, European business travel budgets are still growing, albeit slowly, but at an average rate of 0.5 points above GDP, yet again demonstrating the resilience of the market.
Overall, the business travel budgets of the companies interviewed have increased by 1%. Unlike in 2011, small and medium-sized companies enjoy a better situation than large businesses.

Published in: Travel

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
736
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
24
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 1EUROPEAN BUSINESS TRAVEL BAROMETER 2012 Concomitance Group November 2012 BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.comThis report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 2. 2ContentsExecutive summary .................................................................................................... 3Methodology of the barometer .................................................................................. 4Part 1: Economic trends and travel budget developments ..................................... 5 Economic trends: Eurozone recession in 2012, slow recovery expected in 2013 .............................. 5 Travel expenditure unchanged in Europe in 2012 despite the drop in GDP ....................................... 5 Moderate growth (+1%) in business travel expenditure in Europe, with a range of contrasting situations ............................................................................................................................................. 6 The proportion of unchanged budgets has increased, giving rise to arbitrage .................................. 8 1/3 of the companies measure the return on investment and 1/4 consider that business travel contributes to their development ....................................................................................................... 9 Most travel expenditure needs to be more tightly managed ........................................................... 10 Budget optimisation factors mainly affect direct costs .................................................................... 11 Travel policies are broadly implemented and cover all phases of trips ............................................ 12 Companies use TMCs for support ..................................................................................................... 13Part 2: An increasingly complex value chain ......................................................... 14 A complex value chain, but still managed manually to a large extent.............................................. 14 Multiple and incomplete reporting sources...................................................................................... 16Part 3: Security and mobility issues ....................................................................... 17 Traveller security is a key concern for companies ............................................................................ 17 Mobile solutions are becoming fully established.............................................................................. 17Summary ................................................................................................................... 19 Company maturity is still closely linked to the size of their travel budget ....................................... 19Part 5: 2013 Prospects ............................................................................................. 20 2013 prospects: more wait-and-see strategies, +0.5% growth forecast .......................................... 20 Key issues for 2013: development of international travel and expense management .................... 20 BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 3. 3Executive summaryThe 2012 barometer opens in a period of economic uncertainty in Europe, with negativeGDP growth in the Eurozone despite a range of contrasting situations.Despite this, European business travel budgets are still growing, albeit slowly, but at anaverage rate of 0.5 points above GDP, yet again demonstrating the resilience of the market.Overall, the business travel budgets of the companies interviewed have increased by 1%.Unlike in 2011, small and medium-sized companies enjoy a better situation than largebusinesses.As can be expected in this context, business travel expenditure management is central to theconcerns of the companies.Travel budgets are not increasing overall, but they favour client base development 63% of the 2012 budgets have remained relatively unchanged from 2011: the trend already observed in previous years has become more marked. 3 out of 4 companies now consider business travel as a cost for the company rather than an investment. However, they recognise that this cost is essential: this explains why more than a quarter of them have increased their expenditure on developing new clients/markets, even if this involves cutting their internal business trip expenditure. In a period of economic uncertainty, business travel is perceived as a real growth factor.Business travel costs are increasingly monitored and restricted Although only 30% of the companies measure the return on their business travel investment, almost all of them (89%) have established an expenditure monitoring process. This development should be seen against the increasingly frequent tendency to enter business travel expenditure under Purchases or Finance. Items weighing heaviest in relation to overall expenditure are the most closely monitored, but these are also the least well managed (e.g. MICE). As the primary means for expenditure restriction and control, it is logical that travel policies have been established in almost 9 companies out of 10, including the smallest. In general these policies are very well implemented and cover all business trip phases.Companies are opportunistic in optimising their budgets Although advance booking is still the main factor in optimising company budgets, searching for best buy takes second place (as opposed to 6th place last year) despite the induced risks of hidden costs. The use of rail travel when possible (in 5th place and rising) and low-cost companies (among the first 10 optimisation factors) exemplify this preference for levers affecting costs directly on booking, focusing on the short term perspective. Nevertheless, the value of more structured factors is equally well recognised, such as online booking, using preferred suppliers or renegotiating supplier agreements. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 4. 4Mobile solutions are becoming a fully-fledged booking optionApplications provided by mobile tools increasingly cover pre-trip, on-trip and post-trip phasesand are turning this option into a real alternative for a growing number of companies (14%,as opposed to 9% last year).Security is becoming a major issueDriven by increasingly stringent legal obligations, companies are increasingly integratingsecurity issues in their business trips. These issues are now the 6th most frequent componentof travel policies (for 83% of the companies) and are even among the 3 priorities for 2013.Prospects for 2013: more wait-and-see strategiesOver 7 companies out of 10 anticipate that their 2013 travel budgets will stagnate. Growthexpectancy is diminishing, at +0.5%. Here again the situation is more favourable for smalland medium-sized companies.Methodology of the barometer BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 5. 5Part 1: Economic trends and travel budget developmentsEconomic trends: Eurozone recession in 2012, slow recovery expected in 20132012 is synonymous with recession for the European zone, with GDP down 0.4% from2011. France registered a GDP growth of approximately 0.Although slow recovery is anticipated in 2013 (0.2% growth in Europe), the economicoutlook is still strained. During this year the IMF reduced its Eurozone growth forecasts ontwo occasions.The United States enjoy more favourable dynamics, with 2.2% growth, representingprogress from 2011 observations.In Asia, Japan is recovering after a difficult year in 2011, showing 2.2% growth. AlthoughChina no longer has two-figure growth, the level of GDP growth is still much higher thanfor other regions, increasing by 7.8% for 2012.Travel expenditure unchanged in Europe in 2012 despite the drop in GDPThe volume of expenditure for the 3 main European countries during this year remainsunchanged at 127 billion USD. The French market, amounting to about 36 billion USD,has grown very slightly by about 0.6%. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 6. 6Overall, the increase in business travel expenditure is still 0.5 points above GDP; thisconfirms the resilient nature of business travel, as already observed in 2011.The Global Business Travel Association (GBTA) forecasts slow growth for Europe in2013, which should allow a return to 2008 expenditure levels, or approximately 131 billionUSD. Caution is still the order of the day, however, as a number of financial analystsanticipate that GDP will increase less than the IMFs + 0.4% forecast due to weak exportsand restrictive budget policies.In the United States, business travel trends also reflect the GDP trend. A total of 257billion USD will have been spent in the United States in 2012. This expenditure has grownconstantly in the country since 2009.As in 2011, China has the strongest growth. Expenditure increased by 22 billion USDfrom 2011 to 2012. In this respect, China is growing by the equivalent of the Frenchbudget every 2 years. It is forecast to overtake the United States in 2014, making it thecountry with the highest business travel expenditure in the world.Moderate growth (+1%) in business travel expenditure in Europe, with a range ofcontrasting situationsThe interviewed companies increased their budgets by +1% on average during 2012, butthe situation varies in several respects. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 7. 7Geographical contrast:- Germany and the northern countries in particular took the lead in terms of growth, with an increase in budgets of over 2%;- Southern European countries are marking time with diminished budgets;- Interviewed companies in the UK have also seen their budgets reduced by -1% to -2%.Contrast in types:- Growth in the budgets of small and medium-sized companies and industries has been the most significant at 1.6%;- For their part, growth among large businesses has been sluggish at +0.1%. The largest budgets (over €20 million) have even dropped by 5%, unlike in 2011 when they led the growth figures with a +6% increase. The growth mechanism has thus been completely reversed. This is one of the striking facts in the 2012 barometer.Finally, a contrast between sectors: - The construction, manufacturing and luxury sectors show above average growth of 1.9%; - Conversely, the finance and health care sectors have seen their business travel budgets diminish by 1.6%. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 8. 8The proportion of unchanged budgets has increased, giving rise to arbitrage63% of the companies declared that their budget was largely unchanged in 2012. Theproportion of these companies has doubled in two years from 29% to 63%. In 2011, "only"1 out of 2 companies had anticipated this budget stability for 2012; the phenomenon isthus even more marked.Even so, this does not mean that all budgets have been frozen; unlike in 2010, thedynamics of the market remain positive with a higher proportion of companies declaringgrowth in their budget than those declaring a budget cut: 23% against 14%.The stability of the budgets is driving companies into arbitrage. Client base developmentbenefits most from increased budgets, with the development of new markets and clientsbeing the primary growth factor, followed in second place by maintaining existing clients.This type of arbitrage is at the expense of business trips within organisations or internalevents, the primary budget reduction factors.Business travel is therefore still a lever for company growth and is used as a determiningfactor in company strategies. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 9. 91/3 of the companies measure the return on investment and 1/4 consider thatbusiness travel contributes to their developmentCurrently 30% of the companies declare that they measure the return on their investmenton business travel. In 80% of cases, this involves measurements on all business trips in aparticular department or division. The return on the investment on each separate businesstrip is much less frequently measured.Measuring the return on investment is closely linked to the companys travel budget. Thelarger the budget, the more important it is to measure the benefits. 43% of largecompanies (with travel budgets exceeding €3 million) measure the return on investment;this figure even reaches 53% for global businesses with budgets exceeding €20 million.3 out of 4 companies still consider business trips as a necessary cost rather than aninvestment. However, two facts should be borne in mind:- The number of those undecided has decreased sharply. There were 6 times more of them two years ago than today;- The proportion of companies considering business travel as a major contribution to company development is steadily growing.This demonstrates development in the perception of business travel expenditure.Companies are increasingly aware of the contribution made by business travel. Indeed, BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 10. 10companies today no longer consider reducing the number of trips as a way of optimisingthe budget.Travel management companies (TMCs) have a crucial role to play in this changingperception: only 15% of companies without a TMC consider that business travel makes animportant contribution, while 26% of companies using a TMC hold this view. Working witha TMC has a direct impact on the perception of business travel as an investment.Most travel expenditure needs to be more tightly managedThe 3 expenditure categories subjected to more stringent monitoring than last yearaccount for 75% of the travel budget. As can be expected, these categories are thelargest items in the travel budget and attract the attention of companies.Air travel is still the most closely monitored category, with a total of 57% of companiessubjecting it to a more tightly management. This result is still fairly logical, as this itemaccounts for 40% of the budgets of the interviewed companies.The two major issues in this monitoring are above all accommodation and MICE.Hotel expenses are still a poorly managed category. It still appears relatively limited insize but its real weight is difficult to assess for two reasons:- The large number of booking channels (travel agencies, booking centres, direct suppliers) prevents companies from obtaining an overview of their hotel usage. For BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 11. 11 example, a study on the hotel industry commissioned by American Express among travellers shows that travel policies do not impose any particular booking channel on 2/3 of employees;- The fact that companies use numerous payment methods is a hindrance to consolidating these expenses.This particularly applies to large companies, for which accommodation only accounts for20% of expenditure, but of which 54% declare that they monitor hotel expenses morestringently. Small and medium-sized companies and industries tend to favour rail travel,which is still generally a well-monitored and controlled item.The perceived proportion of MICE expenditure (Meetings, Incentives, Conventions andEvents) remains small in terms of the attention devoted by companies (in particularaccounts in excess of €20 million, 41% of which wish to monitor this item more closely).In fact this type of expenditure is difficult to consolidate and is hence under-evaluated fortwo main reasons:- Orders within the company come from multiple sources; and- This expenditure is often outside the scope of activity of the travel manager.This item can represent up to 30% of real travel expenditure in some sectors such as thepharmaceutics or automobile industry.Budget optimisation factors mainly affect direct costs BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 12. 12In the current context, and unlike what happened last year, companies increasinglyprioritise economic levers.As in 2011, companies still favour advance booking as a means of optimising their travelbudget. In most cases, this can generate savings of 25% without affecting travellercomfort. Studies show that between 2011 and 2012, the proportion of reservationsexceeding 21 days increased from 43% to 46% for long haul trips. This development iseven more striking on the European rail network, with an increase of 11% from 2011 to2012. Predicting trips is thus essential for budget optimisation, but is a long-term approachas it involves a change in the behaviour of travellers.The largest increase is in factor 2: resorting to the best buy policy. In 2011 this factorwas only in sixth place. But obtaining the best buy has its own consequences: companiesshould be aware of the hidden costs involved, such as for altering or cancelling tickets. Inaddition, this factor can have a significant impact on the economic conditions set out in thecontracts negotiated with some preferred suppliers.The use as mentioned of online booking is in third place, relatively unchanged from2011. This factor has a double impact: on prices and on the implementation of companytravel policies. The resulting reduction in costs can achieve up to 20% savings onaverage. This is also a structural factor, considering that an investment in an onlinebooking tool pays for itself within 2 years on average.Other structural factors are also among the most widely mentioned:- Use of preferred suppliers: down one place to fourth place;- Use of centralised means of payment: within the top 10.These two factors also show that companies have a long-term vision on budgetoptimisation within the scope of their partnership with their TMC.Travel policies are broadly implemented and cover all phases of tripsTravel policies occupy 7th place among the means of optimising budgets. As can beexpected, these policies still represent an essential frame of reference for business traveland for its monitoring.Overall, 80% of the companies have a travel policy and implement it properly, with 2/3 ofcompanies reporting an implementation rate of over 70%. This impressive implementationfigure is linked to the broad scope of the travel policy, which includes all business tripphases. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 13. 13This year has seen very significant developments affecting the very structure of travelpolicies.The first striking development concerns accommodation. This year hotels have becomethe primary component of travel policies for 88% of the companies, ahead of air travel.They only occupied 6th place in 2011. Taking into account the difficulties in consolidatingand monitoring this category, travel policies are still the primary means of laying downrules.The second major development concerns security, which now figures in 82% of travelpolicies (see the point on security on page 17).Finally, another major issue is expenditure monitoring. This appears in the travel policiesof 87% of the companies. Monitoring is applied both before and after the trip.Companies use TMCs for supportAs can be expected, companies use their TMCs for the major issues of the moment:online booking, employee security, cost control. In this framework, travel agenciesincreasingly occupy a partnership position: 50% of the services purchased by thecompanies are strategic advice services for sourcing programmes, the purchasingstrategy, the workflow audit, or building the travel policy. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 14. 14With a view to ensuring employee security, over half of the companies engaged theirTMCs to provide 24-hour support, while almost 40% of them used TMCs to repatriate theiremployees or to re-route travellers during their business trip.Part 2: An increasingly complex value chainA complex value chain, but still managed manually to a large extentThe value chain is the combination of all phases, from authorisation of the trip toreconciliation of the expenses.At least 50% of the companies have organised procedures or even establishedinstruments for each phase in this value chain, both pre- and post-trip. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 15. 15However, there are major disparities:- Apart from online booking, the public sector has a more structured approach to all of the phases. This is clearly linked to the regulatory framework of the administration;- In the private sector, large businesses are more organised than small and medium- sized companies in the post-booking phase. This is to be expected, as they have both the resources and the tools required. Small and medium-sized companies and industries focus more on online booking, benefiting from increasingly accessible technologies.Even if processes are in place, they are still managed manually or through partialautomation and using frequently disparate solutions (originating from different sources):this is still the case for 79% of the companies. One possible explanation for this relates tothe market offer: very few suppliers are yet capable of providing a fully integrated solution.Despite this, progress has been made since 2011. For example, 41% of the largecompanies declared that their management is completely automated. This figure was 28%in 2011.This trend is expected to increase, as over 50% of the companies wish to improve theirvalue chain management from now on, moving towards improved forecasting, monitoring,measurement and consolidation of their travel budgets. Travel agencies have an essentialrole to play in integrating these solutions. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 16. 16Multiple and incomplete reporting sourcesCompanies now receive reports from multiple sources.The main source is still travel agencies, particularly for large companies and small andmedium-sized companies and industries (respectively 65% and 54% using travelagencies).The second source of reports is internal, through company financial systems. Ascompanies have not usually made a clear choice regarding their means of payment,problems arise in consolidating data, driving the companies to engage their internaldepartments in order to obtain an overview of their expenditure.As can be expected, only 55% of the companies receive a single, comprehensive reporton their entire travel expenditure. Progress remains to be made at a time when the primeobjective of 80% of the companies is to control their expenditure. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 17. 17Part 3: Security and mobility issuesTraveller security is a key concern for companiesRecent events such as the nuclear disaster at Fukushima, hurricane Sandy and thehostage crisis in Mali emphasise the importance of business travel security. Companiesare legally required to ensure the safety of their travellers. In France this obligation wasreinforced by legal precedent following the Karachi terror attack in 2007.Companies have genuinely improved their awareness of this issue over the last 2 years:83% of them now include security in their travel policy, as opposed to 74% in 2011.Irrespective of their size, they have been establishing procedures to ensure immediatelocalisation and repatriation of their employees. Their level maturity in terms of businesstravel thus has no impact on establishing security measures.The public sector, however, appears to lag behind slightly; this difference is probablylinked to the fact that most public sector business travel is not international.Mobile solutions are becoming fully establishedMobile business travel support solutions are today being adopted in full. Mobile solutionshave adapted to business travel needs:- in the pre-trip phase for booking and payment; and BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 18. 18- in the post-trip phase for reporting and expense management.As can be expected, 14% of the companies now consider mobile tools as real alternativebooking options, as opposed to 9% last year. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 19. 19SummaryCompany maturity is still closely linked to the size of their travel budgetThis matrix typifies the maturity of the various categories of companies with regard tobusiness travel, from the use of a travel agency (the first phase in the maturing process)to measuring the return on investment, through implementing the travel policy or usingdedicated payment methods.It also compares the rates of use according to the size of company travel budgets, fromless than €250,000 to over €3 million.Firstly, the traditional business travel phases (use of an agency, expense managementprocedure, existence and implementation of the travel policy) have now been establishedin the vast majority of the companies.On the other hand, payment, booking and expense management tools and solutions arestill largely a prerogative of large companies.Thirdly, small and medium-sized companies and industries appear quicker to adoptmobile technologies, which are lighter and easier to put into operation.Most of the companies still share one challenge: measuring the return on investment. Theincreasingly frequent allocation of the travel budget to purchasing and financedepartments should facilitate awareness of this issue. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 20. 20Part 5: 2013 Prospects2013 prospects: more wait-and-see strategies, +0.5% growth forecastThe economic context is still strained and there is a growing tendency for companies toadopt wait-and-see strategies. While 63% of the companies declared a largely unchangedbudget in 2012, prospects for 2013 put this figure up to 71%. The proportion of increasingbudgets is anticipated at 16%, as opposed to 23% in 2012.The mean increase in budgets looks to be around 0.5%. As in 2012, dynamics are on theside of small and medium-sized companies and industries, while on the other handcompanies of over €20 million are banking on a 1.8% budget reduction.This sluggish growth is consistent with forecasts for very moderate price increases. Theair travel sector, in particular short- and medium-haul flights, is only expected to increasefares very slightly: 2% for economy class and 1% for business class. Fares for long-haulflights are unlikely to increase to any greater extent. Moderate price rises are alsoexpected in the hotel sector: between +1 and +4% in general.Key issues for 2013: development of international travel and expensemanagementIn 2013, 52% of the companies planning to increase their business travel budget will do soto support their international activities, as opposed to 31% on the domestic market. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 21. 21For example, 850 French companies are currently established in China, which in 2020 isexpected to become the second-largest commercial outlet for France after Germany.This development on an international level will make travel management morecomplicated; as can be expected, this complexity is reflected in company priorities for2013.These priorities mainly focus around controlling costs and optimising and consolidatingexpenditure.Further company priorities include employee security during their business trips and, to alesser extent, employee satisfaction. Some sectors, such as insurance and services tocompanies, take more account of satisfaction. For these companies, the travel policy alsorepresent a means to attract and keep talented personnel.In conclusion, three issues emerge for the business travel industry in 2013:- Organising business trips to support the growth of European and international companies;- Controlling and measuring the costs that may be involved in such international development through improved technological integration and improved support throughout the value chain;- The final major issue concerns travellers themselves: their trips must be facilitated and made safe to ensure maximum efficiency. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report
  • 22. 22About the barometerThe 2012 barometer was prepared by Concomitance on the basis of a telephone surveyconducted from 18 September to 15 October 2012 among persons in charge of travelbudgets ranging from less than €250,000 to over €50 million (Finance Directors, PurchasingDirectors and Travel Managers) in 567 European companies based in 11 countries:Germany, Great Britain, France, Belgium, Luxembourg, the Netherlands, Spain, Italy,Denmark, Sweden and Norway.About ConcomitanceConcomitance is a service company specialised since 2001 in marketing, commercial, salesand client relations research, consultancy and performance development.Concomitance has teams specialised in several activity sectors such as telecommunications,travel and business travel, banking, distribution, etc.Since its establishment, Concomitance has stood out in terms of its capacity to transposecommercial and marketing issues into action plans which are immediately effective andcomprehensible to all players. This capacity is a direct result of Concomitances DNA: theprior business experience of our consultants allows us to formulate recommendations andshare them with our clients in line with the maturity of their organisation. BAROMETRE EUROPEEN DU VOYAGE D’AFFAIRES 22nd edition – November 2012 Groupe Concomitance : Tel : +33 (0)1 78 16 52 30 or infobarometre@concomitance.com This report is protected by copy right - any full or partial reproduction is subject to prior authorisation of Amex and acknowledgment of Groupe Concomitance in its role in the preparation of this report