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Rail bookings through business travel agencies up during recession

10/03/2010

Rail bookings made by businesses through the largest travel management companies up in 2009 by 13%

Almost a million (15%) fewer bookings for business travel by plane and 13% fewer for business travel by hire car in 2009

Sales by Britain’s biggest corporate travel management companies show that their business customers have increasingly been using trains, rather than planes and cars, to get around during the recession.

The Association of Train Operating Companies (ATOC) – which represents all train companies in Great Britain – attributes this trend to businesses recognising the better value for money of business travel by train together with better services being provided by train operators, and businesses being keen to improve their green credentials.

Analysis by ATOC of new figures from the Guild of Travel Management Companies (GTMC), the trade association representing Britain’s larger travel management companies, shows that:

Businesses made over four million bookings through corporate travel agents for travel by rail in 2009, a rise of 13% on 2008.

This compares to 13% fewer car hire bookings and 15% fewer bookings for air travel over the same time period.
Businesses made 19% more rail bookings in 2008 than they did in 2007, while they made 3% fewer flight bookings and 24% fewer car hire bookings.

As money has become tighter, businesses have recognised the good value offered by trains and the convenience of journeys during which passengers can typically get a lot more work done than on other forms of transport. Rail is more environmentally friendly than planes and cars, and in recent years train companies have invested significantly in services designed for business travellers, such as first class lounges and Wifi internet access.

Research also reveals that:

86% of rail business travellers have work that could easily be done on trains.

Of those who work on the train, 96% feel their time was of some use or very worthwhile.
A record 85% of business travellers were satisfied with their train journey.

David Mapp, ATOC Commercial Director, said: “Through good times and bad, train companies are keeping British business moving and in contact with clients, investors and new markets. With business travellers making 250 million journeys by train each year, rail is proving vital to dragging our economy out of recession.

“This research clearly shows that businesses are increasingly recognising the benefits of rail travel and booking train tickets through travel management companies. We hope that, having enjoyed the benefits of travelling by train, they will continue to see its appeal.

“However, train companies are not complacent and conditions for business travellers on the rail network are set to get even better in 2010. New first class lounges, more station car parking and more widespread internet access are just a few examples of ways in which rail will further strengthen its position as a crucial means of getting the business community around the country.”

Anne Godfrey, GTMC Chief Executive, said: “Since the recession began, there has been a noticeable move among businesses to buying more train tickets via their travel management companies.

“Rail is an affordable and convenient way for business travellers in the UK to get around, and improving facilities in stations and on trains makes it an ever more attractive option.”

Ends

Notes to editors

The Guild of Travel Management Companies represents the agents who handle the bulk of travel bookings by businesses.
Their data shows that, in 2009, businesses made 4,237,458 train ticket bookings, 244,544 car hire bookings and 5,697,952 air travel bookings. In 2008, they made 3,764,102 train ticket bookings, 280,639 car hire bookings and 6,667,281 air travel bookings. In 2007, they made 3,156,155 train ticket bookings, 371,100 car hire bookings and 6,906,285 air travel bookings.
The University of the West of England and Lancaster University jointly researched business travel as part of their 2006 ‘Travel Time Use in the Information Age’ project. They found that 86% of rail business travellers have work that could easily be done on trains. And, of those who work on the train, 96% feel their time was of some use or very worthwhile.
In its latest round of research, released earlier in the year, official watchdog Passenger Focus found that 85% of business travellers were satisfied with their train journey, a peak since the organisation started doing the survey.
Business passengers also told Passenger Focus that they chose rail for reasons including having the ability to work on the train (37%), that it offers a less stressful form of transport (33%), and the speed of the journey (28%).
Examples of the good value and innovation with which train companies are attracting peak numbers of business travellers to the rail network include:
- East Coast has flexible discount fare deals aimed at business travellers heading for London. For a limited period, until 11 April 2010, the Standard Off-Peak return is available at £95 for turn-up-and-go travel, departing York anytime from the 8.11am service onwards on Monday to Friday, and returning anytime up to a month from the date of outward travel. East Coast is also offering a First Class Off-Peak return between London and stations including Edinburgh, Newcastle, York and Peterborough, at up to 40 per cent less than the First Anytime return, arriving in London 10:05 or later on weekdays and returning any time. Business packages, including on-train dining, car parking and London Underground travel, are also available for the same price as an Anytime ticket – and Business Carnet, which includes five turn-up-and-go tickets for the price of four, valid for three months from the chosen start date.
- Over the last year, Virgin has installed Wifi and enhanced mobile reception in all its trains, added 2,800 new car parking spaces at stations, and will add a further 1,000 during 2010. The company has also opened a new First class Lounge at Crewe station, as well as refurbishing its lounges for business travellers at London Euston and Liverpool Lime Street.
- East Midlands Trains has introduced a new First Super Off Peak ticket for travel from Nottingham, Beeston and East Midlands Parkway. This flexible ticket, which allows passengers to travel on any train arriving into London at or after 11.29, and allows return travel from London between 10.30 and 15.15 and after 19.00 on weekdays, is up to 36% cheaper than the equivalent ticket available in 2009.