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Executive SummaryThis 2011 Key Note Market Assessment examines the UK business travel market in terms of domestic and outbound travel by UK residents and overseas visitors. It will also assess the trends in the market witnessed over the last 5 years and the changing roles of travel providers, travel management companies and hotel operators. The Assessment will also make use of bespoke research conducted by NEMS Market Research on behalf of Key Note. The research examines the extent of business travel within the UK by UK residents and their opinion on various factors affecting the market.Business travel for domestic, inbound and outbound travel has decreased in volume since before the recession, as has expenditure on business travel. The global recession exacerbated the market's overall decline, with volumes falling by 18.7% between 2006 and 2010. The worst effected sector was outbound travel, which decreased in volume by 27.1% between 2006 and 2010, while the inbound sector was the only area of the market to witness growth.The mounting squeeze on businesses' resources has resulted in them turning increasingly to budget travel and accommodation in order to keep costs down. Previously, budget airlines had not specifically targeted the business travel sector, but airlines, such as easyJet, are increasingly seeking to tap into this area of the market. The introduction of flexi-fares, new routes and a corporate sales team has been part of easyJet's new business travel procurement strategy. Increasing costs have led to struggles for larger flag carrier airlines. Mergers have helped reduce these costs with the biggest merger being between British Airways and Iberia in January 2011.Air travel is still the dominant mode of transport for business travel, due to convenience and the large distances covered. However, EU emissions quotas coming into force for airlines from 2013 could push up the cost of air travel and see travellers turning to high-speed rail. The European high-speed rail network is also set for expansion, linking more major European cities and increasing competition for the UK's only high-speed rail line. The rising price of fuel is also a factor in rail's favour, particularly for domestic travel.Technological advancements have also revolutionised business travel, improving productivity and efficiency, but also increasing competition through travel alternatives. Smartphone 'apps' now allow the reservations and booking of hotel rooms 'on-the-go'. Travellers can also locate points of interest and work while in transit thanks to mobile Internet technology. However, these advances have also led to improved video conferencing capabilities, increasing competition for business travel.The continued global economic uncertainties could result in a tough few years for business travel. The 2012 Olympics will also provide a key opportunity for growth within the domestic and inbound market sectors. Hotel operators are building establishments in and around the capital, and airlines, such as easyJet, are increasing the volume of flights at the capital's serving airports. In the coming years, growth in business travel is likely to be driven by emerging economies, as these have reported the largest growth in air traffic in recent years.