Abstract
Unlike many syndicated market reports, this report provides in-depth analysis of the demographics and lifestyles of business travelers, with a unique focus on the attitudes and behaviors of the highest value segment: frequent business travelers.
More specifically, this report addresses the following questions:
- What is the size of the market and how have sales fluctuated over the last five years?
- What are the key drivers and trends and how are they impacting consumers?
- What major industry developments took place in 2007 and how do these relate to larger market trends?
- How are demographic and lifestyle characteristics of business travelers unique compared to other segments? How can this information be leveraged to gain competitive advantage?
- What type of travel-related products and services are popular with infrequent and frequent travelers?
- How is the market likely to evolve in 2008 and beyond?
This information can be leveraged in marketing and product development efforts to optimize communications and create services that resonate with current and potential customers.
Table of Contents
- Scope and Themes
- What you need to know
- Definitions
- Consumer research methodology
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Business travel sales
- Travel booking
- High value travelers
- Sales and marketing appeals
- Traveler attitudes and opinions
- The future of the business travel industry
- Insights and Opportunities: A Consumer-Centric Perspective
- Market Size
- Figure 1: Total spending on U.S. domestic business travel, at current and constant prices, 2002-07
- Figure 2: Number of person trips for business and leisure purposes, 2002-07
- Market Segmentation
- Figure 3: Segment share of domestic business travel sales, 2007Figure 4: Domestic business travel sales, by segment, 2005 and 2007
- Lodging sales for business purposes
- Figure 5: Sales of lodging for business purposes, at current and constant prices, 2002-07Figure 6: Number of hotel rooms available, average occupancy levels, and average room rates, 2001-06
- Air travel sales for business purposes
- Figure 7: Sales of air travel for business purposes, at current and constant prices, 2002-07
- Figure 8: System (domestic plus international flights) quarterly operating profit margins share of total sales, by carrier type, 2006 and 2007
- Car rental sales for business purposes
- Figure 9: Car rental sales for business purposes, at current and constant prices, 2002-07
- Retail Channels
- Figure 10: Responsibility for travel management, by number of flights taken in the past year, November 2007
- Unmanaged travel
- Quasi-managed travel
- The rise in online booking
- Drivers and Trends in Business and Conference Travel
- Costs
- Figure 11: Airline industry fuel costs and jet fuel price per barrel, 2001-07
- Relationship between airfare, fuel costs and airline profits
- Figure 12: Average airfares based on all domestic itinerary fares, round trip or one-way for which no return is purchased, Q3 2005-Q2 2007Figure 13: Q2 average domestic fares from year-to-year, 1998-2007
- Figure 14: System wide (domestic plus international) quarterly operating profit margin of passenger airlines, by group, Q4 2005-Q2 2007
- Rental cars: higher fees due to lower supply and increases in taxes
- Technology
- Alternative meeting technology
- 2007 technology upgrades
- Convenience
- Comfort and luxury
- Customization
- Eco initiatives
- Lifestyle appeal
- Advertising and Promotion
- Analysis of television advertisements
- Airline
- Figure 15: American Airlines rewards TV clip, 2007Figure 16: British Airways business class TV clip, 2007
- Figure 17: United Airlines face-to-face TV clip, 2006
- Lodging
- Figure 18: Marriott Courtyard Hotels TV clip, 2007Figure 19: Choice Hotels TV clip, 2007
- Figure 20: Days Inn Motel TV clip, 2007
- Car rental
- Figure 21: Hertz Car Rental TV clip, 2007
- Loyalty programs
- Social media
- Demographics of the Business Traveler
- Figure 22: Incidence of business travel, international vs domestic, by age, May 2006-June 2007
- Figure 23: Incidence of business travel, international vs domestic, by race/ethnicity, May 2006-June 2007
- Figure 24: Total population and Asian population, by age, 2008
- Figure 25: Incidence of business travel, international vs domestic, by household income, May 2006-June 2007
- Figure 26: Number of business domestic trips taken in past year, by household income, May 2006-June 2007
- Figure 27: Incidence of domestic and international business travel, by level of education, May 2006-June 2007
- The Lifestyles and Occupations of Business Travelers
- Figure 28: Incidence of domestic and international business travel, by time spent working per week, May 2006-June 2007
- Figure 29: Ownership of PDA, cell phone, and cell phone usage for business, by incidence of domestic and foreign travel, May 2006-June 2007
- Figure 30: Incidence of domestic and foreign travel, by lifestyle segments with a high concentration of travelers--affluent married couples, May 2006-June 2007
- Figure 31: Incidence of domestic and foreign travel, by lifestyle segments with a high concentration of travelers--single men, May 2006-June 2007
- Figure 32: Incidence of domestic and foreign travel, by lifestyle segments with a high concentration of travelers--single women, May 2006-June 2007
- Figure 33: Hobbies and leisure activities, by incidence of domestic and foreign travel, May 2006-June 2007
- Figure 34: Incidence of domestic and foreign travel, by occupations with high incidence of business travelers, May 2006-June 2007
- Figure 35: Number of domestic business trips taken in past year, by occupations with high incidence of business travelers, May 2006-June 2007
- Figure 36: Incidence of domestic and foreign travel, by industries with high incidence of business travelers, May 2006-June 2007
- Work-related Attitudes of Business Travelers
- Figure 37: Work-related attitudes of business travelers, by incidence of domestic and foreign travel, May 2006-June 2007
- Figure 38: Work-related attitudes of travelers--importance of business travel and use of alternative methods, by number of business trips taken in past year, November 2007
- Figure 39: Work-related attitudes of travelers--enjoyment and stress, by number of business trips taken in past year, November 2007
- Figure 40: Work-related attitudes of travelers--types of hotels favored, by number of business trips taken in past year, November 2007
- Figure 41: Work-related attitudes of travelers--eco-friendly, by number of business trips taken in past year, November 2007
- Reasons for Travel, Hotel Services and Types of Ground Transport Used
- Reason for travel
- Figure 42: Reasons for business travel, by number of business trips taken in past year, November 2007
- Lodging
- Figure 43: Hotel services used, by number of trips taken in past year, November 2007
- Figure 44: Hotel services that influenced hotel choice, by number of trips taken in past year, November 2007
- Ground transportation
- Figure 45: Types of ground transportation used, by number of trips taken in past year, November 2007
- Future and Forecast
- Future trends
- Market forecast
- Domestic business travel
- Figure 46: Forecast of domestic business travel, at current and constant prices, 2007-12
- Business lodging
- Figure 47: Forecast of lodging for business purposes, at current and constant prices, 2007-12
- Business air travel
- Figure 48: Forecast of air travel for business purposes, at current and constant prices, 2007-12
- Business car rental
- Figure 49: Forecast of car rental for business purposes, at current and constant prices, 2007-12
- Appendix: Trade Associations
