LATEST RESEARCH LOOKS AT CHANGES TO SUPPLY, DEMAND AND CONVERGENCE
Greater travel reduction in store with more holistic management practices
The Institute of Travel & Meetings (ITM) UK & Ireland today 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, building on some of the trends identified earlier in the year on short and long term market drivers, looks at specific elements within the demand and supply lines and the likelihood of convergence across meetings and communications technology.
The research found that:-
- 31% of buyers manage a combined travel and meetings programme.
- Those with consolidated travel and meetings programmes estimated an amazing 17% total savings achieved due to consolidation alone
- 80% already manage, or intended to manage in the next 2 years, communication technology alongside travel
- Environment alone is likely to account for a long term reduction in travel by around 12%
- Alternative technology alone is likely to account for a long term reduction of around 18%
Paul Tilstone, Chief Executive of ITM, said about the research, "With an estimated total impact of environment and technology reaching 30% in reduced demand over the next 10 years, the converged management of communication technology with travel and meetings seems inevitable. The likely impact on the supply of these sectors is yet to materialise in any clear form at a time when survival is the name of the game, but when revenues return real change can be expected"
Tilstone added that the research was another reason why the association was planning a summit by high-end video conference technology in 2010 with buyers across the globe.
The research also tested the reactions of companies to the pricing policies of suppliers, including rail companies, airlines and intermediaries. The responses suggest that rail needs to significantly reduce fares to ensure competitiveness and buyers expect intermediaries such as travel management companies (TMC's) and Hotel Booking Agencies (HBAs) to reduce even further in the coming years. The results will make ITM's October forum on revenue management even more interesting.
Colin Goldney, MD of ITM's research partner, Argate, added, "It is interesting to see pricing coming under further scrutiny when you might expect the present conditions to have caused these to bottom out. When you stand these results against the research undertaken at the beginning of the year it does support other evidence we are seeing that buyers are looking to drive traffic on-line and to automate processes as much as possible."
The results will be released to members who didn't participate in the research in the New Year, although it is available for purchase from the ITM site now
