US $1,295.00

PhoCusWright's U.S. Corporate Travel Distribution Fourth Edition

July 2009
US $1,295 CA $1,387 £830 €947

BONUS: Purchase PhoCusWright’s U.S. Corporate Travel Distribution Fourth Edition and receive the video / audio recording and presentation deck from the July 29 Webinar, The Changing Face of Corporate Travel.

The travel industry is reeling from the economic recession, but few segments are as challenged as corporate travel. Amid double-digit declines in traveler demand and revenue, the corporate travel landscape is undergoing a major realignment. Corporations are pulling back across the board and all players—from airlines to hotels to travel management companies—are under pressure.

The dynamics of corporate travel distribution, however, continue to evolve rapidly. Online adoption is growing, expense integration is accelerating and technology innovation and adaptation continue to reshape the business travel landscape. The traditional definition of business travel is changing as disruptive technologies and alternative channels (such as virtual meetings) force companies to evaluate if and under what conditions a trip should be taken. Business travel will be anything but typical over the next three years.

PhoCusWright’s U.S. Corporate Travel Distribution Fourth Edition includes the following:

Historical and forecasted market sizing for the U.S. corporate travel market 2007 - 2011
Segmentation by channel: supplier direct vs. intermediary (TMC), and online vs. offline
The disposition of corporate travel spend by product segment (air, hotel, car, etc.)
Online adoption, corporate self-booking tools
Analysis of the seven major trends shaping (and reshaping) corporate travel

This report measures the current composition of the corporate travel market and shines a spotlight on fundamental shifts that will change the business travel landscape over the next three years.

Table of Contents Methodology

TABLE OF CONTENTS ^top

40 Pages
Introduction
Corporate Vision Drives Travel Strategy
Definitions
Methodology
Key Findings
Market Size and Outlook
Technology and Market Trends
Size of the Market
The Total U.S. Travel Market
U.S. Corporate Travel
Online Corporate Travel
Travel Management Companies (TMCs) vs. Supplier Direct
Disposition of Corporate Travel Spend
Online Adoption
Corporate Self-Booking Tools
GDS-Airline Distribution Agreements
Key Corporate Travel Trends
TREND 1: 3P’s of Corporate Travel: Balancing the Triple Bottom Line
TREND 2: Travel & Expense: Putting the Cart Before the Horse
TREND 3: Business Travel Goes Retail: Supply Chain Management
TREND 4: Traveler-Centric vs. Trip-Centric Buying
TREND 5: Going Mobile
TREND 6: Videoconferencing: Traveling Without the Trip
TREND 7: SMEs Become Big Business

LIST OF TABLES
Figure 1 Total U.S. Travel Market Gross Bookings, 2006-2010 (US$B)
Figure 2 Comparative Growth Rates of the Total, Online Leisure and Corporate Travel Markets, 2007-2011
Figure 3 Total U.S. Corporate Travel Gross Bookings Market by Channel and Booking Method, 2007-2011 (US$M)
Figure 4 U.S. Corporate and Total Travel Markets, 2007-2011 (US$B)
Figure 5 Corporate Travel Share of Total U.S. Travel Market, 2007 and 2010
Figure 6 Total U.S. Corporate Travel Gross Bookings and Share by Channel, 2007-2011 (US$B)
Figure 7 Online and Offline Corporate Travel Gross Bookings Change, 2007-2011
Figure 8 Integrated Point-of-Sale Applications of Corporate Self-Booking Portals
Figure 9 Intermediary (TMC) vs. Supplier Booking Share of the Corporate Travel Market, 2007 and 2011
Figure 10 Intermediary (TMC) vs. Supplier Booking Share of the Online Corporate Travel Market, 2007 and 2011
Figure 11 Disposition of Corporate Travel Spend
Figure 12 Average Online Adoption Rate Within Corporate Travel Programs
Figure 13 Average Number of Online Booking Tools Used
Figure 14 Leading Online Booking Tools Used
Figure 15 Triple Bottom Line
Figure 16 Linear View of Travel Data Flow
Figure 17 Integrated Travel & Expense Offerings
Figure 18 Use of Online Booking vs. Expense Management Solutions
Figure 19 Traveler-Centric Buying: Travel & Buying Experience Is Paramount
Figure 20 Data Needs of Corporate Stakeholders
Figure 21 Mobile Services Business Travelers Most Desire
Figure 22 Growth of the Micro-Multinational Enterprise

METHODOLOGY ^top

This report sizes the total corporate (or managed business travel) market, including booking method (online and offline) and channel (directly with the supplier and through an intermediary, such as a travel agency or TMC). Corporate travel figures are represented in gross travel value (US$) and defined as U.S. supplier (air, car and hotel) bookings generated from managed business travelers. This includes travel purchases made through online and offline channels, travel intermediaries and suppliers, and those both within and outside of policy (rogue).

Miscellaneous expenses such as parking, ground transportation and trip insurance are not included in corporate travel gross booking figures (for consistency). Total U.S. market size figures, which are referenced from PhoCusWright's U.S. Online Travel Overview Eighth Edition Update: 2009-2010, also do not include these miscellaneous expenses.

Corporate travel spend estimates and projections are compiled from U.S. supplier revenue figures, industry interviews and data gleaned from a Web-based PhoCusWright survey completed in summer 2008 by 130 corporate travel buyers. While all survey respondents had oversight of their firm's U.S. travel budget, some were also responsible for other geographic regions' travel spend.

To understand current and changing market dynamics and shifts in spend, PhoCusWright interviewed more than 65 decision-makers at travel management, technology, supplier, GDS, corporate card and expense management companies in 2008 and 2009. While discussions focused on the use and value of Web-based tools for U.S. points-of-sale for purchasing domestic business travel, respondents were interviewed about their overall business strategy, travel buyer requirements and the corporate travel marketplace in general.

This report contains actual figures and estimates for 2007 and 2008 and forecasts for 2009 through 2011.