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Published:
08/02/2010
Cost still key in 2010, says ITM
Cost will still be the major factor in business travel and meetings in 2010 according to the vast majority of buyers surveyed by ITM.
The Institute of Travel & Meetings UK & Ireland (ITM) has launched the third edition of its Industry Observer – an annual report containing buyer-driven research, annual trend analysis and commentary on the year past and the year ahead.
The research found 85 per cent of buyers believe that cost is still the main focus in the year ahead. Emphasising this point, 83 per cent of travellers are open to cheaper travel alternatives, compared to 62 per cent in 2008.
Only 32 per cent of buyers are expecting expenditure growth in 2010, with 45 per cent predicting flat expenditure and 23 per cent suggesting a further reduction in spending is likely.
The research also found an increase in deviation from preferred travel management company (TMC) and hotel booking agent (HBA) booking channels from just 6 per cent in 2008 to 17 per cent in 2009 as buyers sought the best value. There was also an increase in adoption levels of self booking tool technology, from 39 per cent to 63 per cent of respondents.
Jamie Hindhaugh, chairman of ITM, said: “Clearly the court is still out on what 2010 will look like, but there is some cautious optimism. 2009 was a year of pain for the supplier community but technology appears to have done very well due to a focus on reduced cost as buyers sought to tighten controls. The TMC sector didn’t escape from the huge downturn in booking volumes but some appear to have coped better than others with the greater fragmentation of pricing across different distribution channels.”
The report is provided to all members of ITM at no additional cost, with public sales at £345 per copy.
http://www.itm.org.uk