CREDIT CRUNCH CAUSES LONG TERM DRIVERS OF CHANGE IN TRAVEL & MEETINGS
Latest Research Looks at Long & Short Term Impacts
The Institute of Travel & Meetings (ITM) UK & Ireland has released the results of its latest research across members who buy and manage travel and events for their companies, representing expenditure in excess of £34 billion worldwide. The survey, focusing on the impact of short and long term drivers on travel and meetings programmes, looked at the likelihood of travel and meetings expenditure level returns and the activities of buyers to reduce costs.
The research found that:
- 77% of buyers managing business travel and 81% managing meetings & events believed expenditure would continue to decrease for the next 12 months.
- 36% of those managing business travel and 50% of those managing meetings & events believed expenditure would continue to decrease even across the next 10 years.
- 36% considered cost cutting and environment were achievable at the same time.
- 70% believed that considerable travel will still be required to undertake face-to-face meetings in the long run
Paul Tilstone, Chief Executive of ITM, said about the research, "There are clearly some difficult times ahead of us as these statistics demonstrate that buyers and their companies are still challenging their expenditure levels despite talks of "economic green shoots". Where travel is still required, there is considerable focus on price, as you would expect, and driving greater automation in the booking process. Clearly the impact of this economic crisis is going to offer considerable opportunities to some suppliers and points of crisis for others "
The research also tested the reactions of companies to the raising of the Swine Flu situation to WHO level 5, recently upgraded to level 6. The responses demonstrated that this did not, in the short term, cause mass travel freezes in most instances. Companies focused instead, on locating travellers and providing better guidance.
Colin Goldney, MD of ITM's research partner, Argate, added, "It is good for travel suppliers that the majority of buyers believe considerable travel will still be necessary in the long run for face-to-face meetings, but it is important to take into account the long term impact behavioural change will have during this economic down-time."
To purchase a copy of the survey, please visit the ITM Shop
