29 April 2009

GTMC figures show business travel downturn is worsening

The downturn in business travel has worsened, according to the latest figures from The Guild of Travel Management Companies.

First quarter 2009 transaction figures show a 6% overall reduction in activity, compared to the same period last year.

Air travel was the worst hit, with 17% fewer transactions than last year.

Up until the end of 2008 hotel bookings had remained strong, even growing by 4% in the last quarter, but the hotel sector is now also affected with transactions 8% down.

Car rental, which suffered badly last year, continues to be hit with Q1 figures down 7%.

The only sector to see an increase was rail, which remained strong with a 14% increase.

ââ¬ËœOthersââ¬â¢, which includes travel insurance procurement, passport and visa ordering, airport taxi bookings, chauffer drive and airport parking, shows a massive 31% increase in Q1, indicative that TMCs are looking to offer more services to balance the reduction in air and hotel bookings.

ââ¬ÅâœThe GTMC transaction survey is an accurate snapshot of how UK business is faring in the recession,ââ¬~ said GTMC chief executive Philip Carlisle.

ââ¬ÅâœThis quarterââ¬â¢s continuing decline in air travel is worrying, but predictable, and the performance of the hotel sector underpins the obvious overall slow down in business.

ââ¬ÅâœThe continuing growth in rail travel year on year shows a change in business traveller behaviour which may well continue when the UK emerges from the recession.ââ¬~

By Bev Fearis

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