The Changing Attitudes of Canada s Frequent Business Traveller. Presented by: Dave Pierzchala
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1 The Changing Attitudes of Canada s Frequent Business Traveller Presented by: Dave Pierzchala October 2008
2 Introduction The Canadian Business Travel Study is a yearly syndicated study that has been running for 16 years. The study tracks the travel behaviours and preferences of frequent business travellers in Canada. Frequent business travellers are defined as those individuals who have taken 6 or more round trip flights for business purposes in the past 12 months. Data for the study is collected via online methodology. Prior to 2003, surveys were conducted via telephone. All samples from the study come from three sources: Ipsos Reid s Canadian Household Panel; and, Survey respondents from the preceding two years of that particular year s study. Each year the study has a minimum sample size of 1,200 frequent business travellers. 2
3 Introduction The study data are weighted according to Canadian business travel volume, which is estimated using Statistics Canada data on the total number of Canadians enplaning at each Canadian airport. An important component of the Canadian Business Travel Study is Ipsos Reid s proprietary segmentation analysis. This analysis explores the differences between travel segments in order to highlight issues that could help market travel-related products and services to homogenous groups within the Canadian business travel market. The segmentation analysis is based on a series of psychographic questions asked as agree/disagree statements using a 7-point scale. This presentation will focus on changes in frequent business travellers overall responses to the psychographic questions between 2003 and
4 Business Travellers Approach to Life % Agree (rated 5, 6, 7 on 7-point scale) I enjoy the finer things in life I believe in saying 'nothing ventured nothing gained', that's why I like to take risks It's important to pay attention to what successful people are doing I am usually the first to have new, high-tech products I believe in paying whatever it costs to get the best quality I can I don't like causing waves so I usually don't make a fuss about things that bother me Technology changes so quickly, I sometimes feel left behind Everything today is changing too fast 53% 59% 47% 52% 33% 37% 32% 41% 24% 33% 16% 21% 15% 21% 74%
5 Business Travellers Approach to Travel Spending and Services % Agree (rated 5, 6, 7 on 7-point scale) Given how much I spend on airlines and hotels, I wish they'd provide me with special treatment Whenever possible I try to choose hotels, rental cars and airlines that will help me maximize my frequent flyer points 69% 73% 7 It's more important to me to get a cheaper fare than to earn frequent flyer points I am usually rushed or running late when travelling on business so I need quicker service than other travellers Keeping in touch with the office ( , etc.) is a real hassle for me while away on business 41% 36% 35% 35% 26%
6 Agreement with Office Contact Statement % 35% 36% 42% 34% 7% Keeping in touch with the office ( , etc.) is a real hassle for me while away on business (% agree 5, 6, 7 on 7-point scale) Use calling card very/fairly often when travelling for business Travel with a Blackberry (% yes) 55% 12% 23% 35% 31% 31% 42% 28% 26% 48% 26% 24% 6
7 7 5 Agreement with Technology Statements Technology changes so quickly, I sometimes feel left behind (% agree 5, 6, 7 on 7-point scale) Everything today is changing too fast (% agree 5, 6, 7 on 7-point scale) Use calling card very/fairly often when travelling for business Use faxes very/fairly often when travelling for business Travel with a Blackberry (% yes) 54% 55% 42% 35% 42% 48% % 3 25% 31% 26% 24% 16% 15% 16% 17% 21% 18% 21% 21% 21% 21% 18% 23% 21% 12% 17% 7% 12% 7
8 Agreement with Business Travel Budget Statement 10 8 These days I have to be very budget conscious about my business travel (% agree rated 5, 6, 7 on 7-point scale) Average monthly primary credit card spending for business expenses 63% 63% $2,639 $2,689 59% 59% 57% 59% $3,622 $3,654 $4,117 $3,466 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 8
9 Agreement with Business Travel Spend Statement 10 Given how much I spend on airlines and hotels, I wish they d provide me with special treatment (% agree rated 5, 6, 7 on 7-point scale) Average monthly primary credit card spending for business expenses $8, % 64% $2,639 $2,689 71% 72% 72% 73% $3,622 $3,654 $4,117 $3,466 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 9
10 Agreement with Frequent Flyer Points Statement 10 Whenever possible, I try to choose hotel, rental cars and airlines that will help me maximize my frequent flyer points (% agree rated 5, 6, 7 on 7-point scale) Prefer to earn airline points Prefer to earn hotel points 8 68% 64% 65% 72% 71% 69% 7 62% 59% 59% 57% 17% 22% 28% 27% 29% 29% 10
11 Agreement with Cheap Fares vs. Frequent Flyer Points Statement It s more important to me to get a cheaper fare than to earn frequent flyer points (% agree rated 5, 6, 7 on 7-point scale) 10 8 Average monthly primary credit card spending for business expenses $8,000 $7,000 $6,000 41% 41% $3,622 $3,654 $4,117 $3, % 36% 36% $5,000 $4,000 $3,000 $2,639 $2,689 $2,000 $1,000 $0 11
12 Agreement with Preferred Communication Statement I prefer face-to-face meetings whenever possible, rather than communicating my phone, or video conferencing (% agree 5, 6, 7 on 7-point scale) Use very/fairly often when travelling for business Use audio conferencing very/fairly often when travelling for business % 63% 63% 89% 9 93% 94% 95% 59% 59% 57% 59% 25% 26% 29% 24% 29% 29% 12
13 Conclusions Despite the rapid adaptation of certain business communication devices, particularly the BlackBerry, most frequent business travellers feel comfortable with the technological changes surrounding them. The significant changes in usage levels of various communication devices points to a receptiveness among frequent business travellers to replace communication tools, particularly when new devices simplify keeping in touch with the office while travelling. Frequent business travellers would like to receive special treatment, whether their level of spending rises or falls. This desire for special treatment offers travel-related service providers the opportunity to set themselves apart from their competition in the minds of business travellers. Loyalty programs are important for business travellers. Even as business spending has fallen recently, only a minority of travellers place more importance on finding cheaper fares than earning frequent flyer points. The narrowing of the preference gap for earning airline frequent flyer points over earning hotel points provides an opportunity for hotels to refine their loyalty programs to narrow this gap even further and for airlines to do likewise in order to regain the advantage they once held over hotel loyalty programs. 13
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