2. BUSINESS TRAVEL & TOURISM
usiness travel is a growing element of the overall travel and
tourism industry.
t is thought to be worth more than £16 billion annually.
n 2001, spending by business visitors exceeded that of leisure
visitors.
usiness travel and tourism includes
3. BUSINESS TRAVEL
CHARACTERISTICS
igh quality, high yield (earns more revenue) part
of travel and tourism.
engthens the high season for leisure tourism
destinations in UK.
ear-round sector means more full-time jobs.
ore ‘shock-proofed’ against downturns or
disasters.
nvestment can regenerate
urban areas.
4. THE COMPONENTS OF
BUSINESS TRAVEL
Conferences and meetings are worth over £7
billion in 2003.
This part of the sector includes:
ales conferences
anagement meetings
nnual general meetings
raining courses
usiness presentations
5. THE COMPONENTS OF
BUSINESS TRAVEL
he market for exhibitions and trade fairs is worth over £2
billion per year.
rade exhibitions are for buyers and sellers in specific trade
sectors.
ublic exhibitions attract paying members of the public.
rade/public exhibitions aim to attract both types of visitor.
6. THE COMPONENTS OF
BUSINESS TRAVEL
ncentive travel is used by organisations to
motivate their staff.
ravel rewards cost between £500
and £5,000 per head.
hey are usually offered in industries with high
profit margins such as cars and financial
services.
ualification for incentive travel
is based on achieving agreed goals (usually sales
targets).
7. THE COMPONENTS OF
BUSINESS TRAVEL
orporate events include staff
and client entertainment.
porting occasions are the most popular for
corporate events.
lose links exist between corporate events
segment and the contract catering industry.
arket worth between £700 million
and £1 billion per year.
8. THE COMPONENTS OF
BUSINESS TRAVEL
he outdoor events segment brings together local
authorities, show organisers, event management firms,
promoters and venues owners.
With…
quipment and services firms, consultants, and
entertainment agencies.
utting on thousands of events
across the country every year.
9. THE COMPONENTS OF
BUSINESS TRAVEL
hese first 5 segments of the industry are known
as examples of ‘discretionary’ business tourism.
his means that the organisers
have a choice over the destination
of their events.
orporate travel is a ‘non-discretionary’ segment.
his means there is no choice
over where it takes place.
10. THE COMPONENTS OF
BUSINESS TRAVEL
orporate travel is a £6 billion
annual market.
verlap with all other segments of the business travel and
tourism industry.
ay involve travel by air, rail, coach, car and sea.
an lead to individual and family travel beyond the business
11. BUSINESS TRAVEL AGENCIES
Business travel agencies share many
characteristics with retail travel agencies:
hey can be trans-national businesses, national
organisations and independent companies.
hey may offer a mix of business
and leisure travel services.
hey have been affected by the rise
of internet tourism distribution.
12. ISSUES IN BUSINESS TRAVEL
Again, many of these are the same as those faced by retail travel agencies:
uts in commission paid
to travel agents.
on-commission fees for travel agents.
he rise of the low-cost airlines.
irect sales to customers
via the internet.
13. CONCLUSION
usiness travel is a highly valuable part of the travel and tourism
industry.
ot only does it continue to grow, but average spending by
business travel customers is higher than in the retail sector.
enues and cities compete through ‘place marketing’ to appeal
to customers in the sector.
