One-In-Three Frequent Business Travellers Expect To Travel More In The Next 12 Months
Low-cost Airlines Seen As A Viable Alternative For Business Travellers
Business Travel Market Still Off Pre-9/11 Levels By 13-15%
Vancouver, BC - Brighter times may be ahead for Canada's business travel market as
32% of frequent business travellers say they plan to travel more in 2004. But, while the
promise of increased business travel is encouraging news, the fact remains that whether it's
rental cars, hotels, credit card spending, or airlines, the business travel market is still down
13-15% from pre-9/11 levels.
According to Ipsos-Reid Associate Vice President Dave Pierzchala, "After a turbulent two years marked by 9/11, the subsequent War on Terrorism, SARS and a downturn in the US economy, business travel appears to be stabilizing. However, the numbers we have demonstrate that it will be difficult for business travel to return to pre-9/11 levels."
Ipsos-Reid has been monitoring the Canadian business travel market since 1991, surveying Canada's elite business travellers via the Canadian Business Travel Study - the acknowledged report card on Canada's business travel market.
By definition, frequent business travellers have "taken at least 6 round-trip flights for business in the past 12 months" and although this select audience represents only 4% of the total Canadian population, they represent approximately two-thirds of Canada's business travel market.
This year's survey was compiled via 1,256 business traveller respondents in early August with the analysis and findings completed during this quarter. This year's survey reveals some very interesting trends about the current state and future direction of Canada's business travel market.
One-in-Three Frequent Business Travellers Expect to Travel More in the Next 12 Months ...
On a positive note, the percentage of frequent business travellers who expect to travel more often in the next 12 months (32%) is larger than the percentage who expects to travel less often (22%). In 2001, the last time the study was completed, 28% expected to travel more often in the upcoming 12 months.
And How They Are Travelling ...
Around the world, low-cost airlines are outperforming their traditional full-service counterparts. The market in Canada is no different. The last two years have seen the creation of three new low-cost airlines (ZIP, Jetsgo and CanJet) and WestJet continues to expand its service and post positive financial results.
For the first time in the history of the study, we asked business travellers about the decisions they make in respect to flying on full-service and/or low-cost airlines. While full-service airlines continue to have the lion's share of the market (41% of frequent business travellers say they fly primarily with full-service airlines) almost one-in-five (17%) say they primarily fly with low-cost carriers. Another 25% spread their travel across full-service and low- cost airlines. And the final 17% use a full-service airline for business and a low- cost airline for leisure. These numbers show that 42% of frequent business travellers are flying on low-cost airlines at least some of the time for their business travel.
"While full-service airlines continue to lead the way when it comes to business travel, the success of low-cost airlines has caused full-service competitors to re-examine the way they do business," says Pierzchala.
Canada's Business Travel Market Still Down by 13-15% in All Major Categories Post-9/11 ...
In comparing the data collected in 2003 with the results from 2001, the following declines are apparent:
The 2003 Canadian Business Travel Study is the acknowledged report card for Canada's business travel market. The results are based on 1,256 respondents who have taken six or more round trip flights for business in the past 12 months. The study was conducted online from July 8 to August 6 and the results are statistically weighted to ensure they reflect the regional composition of enplanements at Canada's 50 major airports. With a national sample of 1,256, one can say with 95% certainty that the overall results are within 1772.8 percentage points of what they would have been had all frequent business travellers been polled.
For more information on this news release, please contact:
Dave Pierzchala
Associate Vice-President
Ipsos-Reid
604.257.3200
According to Ipsos-Reid Associate Vice President Dave Pierzchala, "After a turbulent two years marked by 9/11, the subsequent War on Terrorism, SARS and a downturn in the US economy, business travel appears to be stabilizing. However, the numbers we have demonstrate that it will be difficult for business travel to return to pre-9/11 levels."
Ipsos-Reid has been monitoring the Canadian business travel market since 1991, surveying Canada's elite business travellers via the Canadian Business Travel Study - the acknowledged report card on Canada's business travel market.
By definition, frequent business travellers have "taken at least 6 round-trip flights for business in the past 12 months" and although this select audience represents only 4% of the total Canadian population, they represent approximately two-thirds of Canada's business travel market.
This year's survey was compiled via 1,256 business traveller respondents in early August with the analysis and findings completed during this quarter. This year's survey reveals some very interesting trends about the current state and future direction of Canada's business travel market.
One-in-Three Frequent Business Travellers Expect to Travel More in the Next 12 Months ...
On a positive note, the percentage of frequent business travellers who expect to travel more often in the next 12 months (32%) is larger than the percentage who expects to travel less often (22%). In 2001, the last time the study was completed, 28% expected to travel more often in the upcoming 12 months.
And How They Are Travelling ...
Around the world, low-cost airlines are outperforming their traditional full-service counterparts. The market in Canada is no different. The last two years have seen the creation of three new low-cost airlines (ZIP, Jetsgo and CanJet) and WestJet continues to expand its service and post positive financial results.
For the first time in the history of the study, we asked business travellers about the decisions they make in respect to flying on full-service and/or low-cost airlines. While full-service airlines continue to have the lion's share of the market (41% of frequent business travellers say they fly primarily with full-service airlines) almost one-in-five (17%) say they primarily fly with low-cost carriers. Another 25% spread their travel across full-service and low- cost airlines. And the final 17% use a full-service airline for business and a low- cost airline for leisure. These numbers show that 42% of frequent business travellers are flying on low-cost airlines at least some of the time for their business travel.
"While full-service airlines continue to lead the way when it comes to business travel, the success of low-cost airlines has caused full-service competitors to re-examine the way they do business," says Pierzchala.
Canada's Business Travel Market Still Down by 13-15% in All Major Categories Post-9/11 ...
In comparing the data collected in 2003 with the results from 2001, the following declines are apparent:
- The average number of flights taken for business purposes in 2003 is 16.2, still down 13% from 2001's 18.7 flights for business.
- The average number of nights spent in a hotel is 15% below the mark measured in 2001 (46.9 nights in 2001 and 40.0 nights in 2003).
- The average number of times that Canadian frequent business travellers rented a rental car remains 15% below the numbers collected in 2001 (10.8 rentals in 2001 and 9.2 rentals in 2003).
- The average monthly amount spent for business purposes on the credit card used most for business is still down 13% (from a monthly average expenditure of nearly $3,100 in 2001 to a monthly average expenditure of just over $2,600 in 2003).
The 2003 Canadian Business Travel Study is the acknowledged report card for Canada's business travel market. The results are based on 1,256 respondents who have taken six or more round trip flights for business in the past 12 months. The study was conducted online from July 8 to August 6 and the results are statistically weighted to ensure they reflect the regional composition of enplanements at Canada's 50 major airports. With a national sample of 1,256, one can say with 95% certainty that the overall results are within 1772.8 percentage points of what they would have been had all frequent business travellers been polled.
For more information on this news release, please contact:
Dave Pierzchala
Associate Vice-President
Ipsos-Reid
604.257.3200
