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BUSINESS TRAVEL BUYERS DEMAND AN END TO APD AND A NEW RUNWAY FOR THE UK

Friday, January 13, 2012
A survey of business travel buyers has revealed that 88 per cent want APD scrapped, almost half think the south east needs more runway capacity and, while 25 per cent will enjoy bigger budgets and book more trips in 2012, over a quarter will buy more lower class airline seats and nearly half will use more travel alternatives. 

The survey of 252 buyers was carried out by the Business Travel Show, Europe’s leading corporate travel event, which takes place 7-8 February 2012. Buyers were asked the following questions, which impact the airline industry:

Should APD be scrapped?
• Yes completely       55%
• Yes but only the 2012 increase    24%
• Yes but only in exceptional circumstances   9%
• No        12%

Does the south east need more runway capacity?
• Yes       48%
• No        52%

How should we increase capacity (only answered by those who said yes to above)?
• A third runway at Heathrow     48%
• A completely new hub     37%
• Gatwick expansion      25%
• Other       12%

How will you budgets change for 2012?
• Increase      25%
• Decrease      15%
• Stay same      46%
• Don’t know       14%

How many trips will you buy in 2012?
• Fewer       18%
• More        30%
• The same       36%
• Don’t know       16%

How many travellers will you book into a lower class seat?
• Fewer       8%
• More        28%
• The same       48%
• Don’t know       16%

Will you use travel alternatives more or less?
• More       45%
• Less        4%
• The same      40%
• Don’t know       11%

More than 6,000 buyers and 200 world-class exhibiting suppliers will be at the Business Travel Show in February, the most comprehensive and diverse range of suppliers in Europe.  They include the following airlines, Star Alliance, Virgin Atlantic, United, brand new launch Hong Kong Airlines, Air Astana, Arik Air International, EgyptAir, Ethiopian Airlines, Finnair, Flybe, Japan Airlines, Middle East Airlines, South African Airways, TAM Airlines and Ukraine International Airlines.

The show also hosts Europe’s leading free to attend conference programme for the corporate travel market.

Tuesday’s Forecasting Forum panel debate will give buyers a valuable insight into how travel costs are likely to change over the next 12 months, revealing whether they should expect to pay more or less for air, hotel and other travel costs by the end of the year.

The forum will be moderated by the ITM’s recently-appointed CEO Simone Buckley and speakers are Prashanth Kuchibhotla - American Express Business Travel, Sarah Makings – KPMG and Jonny Shingles from Egencia.

“We believe 2012 to be a seller’s market, with upward pressure on both ATPs and ADRs. With the uncertainty surrounding the current economic situation, we’re monitoring market fluctuations very closely. Currently, we are seeing hotel rates staying flat”, says Jonny Shingles, Managing Director, Egencia UK.

“In an uncertain environment, we'll continue to monitor the picture closely, giving our clients the tools and information to make the most of their budgets in 2012.” 

Simone Buckley, ITM CEO, added: “A recent survey by the Business Travel Show revealed that cost will continue to dominate business travel buying this year, so the Forecasting Forum panel debate is an absolute must-attend for all buyers visiting the show in February.”

Wednesday’s Sustainability buyer masterclass will allow travel managers to swap best practices on how to be green, whether they are operating an established green travel programme already or planning to introduce an environmental dimension for the first time.

To register for a free visitor badge for the Business Travel Show, please visit www.businesstravelshow.com.

About the Business Travel Show:

The Business Travel Show runs from 7-8 February at Earls Court in London. With in excess of 200 exhibitors and 6,000 buyers responsible for a travel purse of more than £10.3billion, the Business Travel Show is the flagship event in the European industry calendar. London is the sister show to business travel events in Dusseldorf and Dubai and runs alongside complementary event Travel Technology Europe.

For more information:

Please contact Charlotte Le Rougetel or Ravi Vijh at Bastion on 020 7269 7900; bts@bastion.co.uk

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