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Business Travel and Tourism Market Intelligence lo
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WHY IS IT IMPORTANT? Business tourism is a huge market in the UK. In 2012 there were 18.9 million domestic overnight business trips in Great Britain and 7.4 million inbound international business trips. Although business travel and tourism has declined since the recession, it is slowly increasing and is forecast to continue growing up to 2018. An important part of the business market is the MICE (Meetings, Incentives, Conferences and Exhibitions) sector which accounts for 30% of the whole UK visitor economy and generates more than ÂŁ30 billion annually. There are more than a million conferences each year (attracting over 110 million attendees) and more than 1,500 exhibitions and trade fairs. Coastal towns can develop their business tourism market through carefully targeting particular segments of the MICE industry.
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CHARACTERISTICS OF THE BUSINESS TOURISM MARKET
events and conferences, businesspeople will want accommodation that is close to the venue, convenient car parking, and a lively nightlife for after-hours socialising.
Business travellers are a diverse group but a significant proportion tend to be aged under 35. Such people are big users of smartphones and tablets and appreciate things like contactless payments and smartphone check-ins. They are also very likely to research their destination before their visit and to share their experiences online. However, some sectors of the MICE market (particularly not-for-profit associations and groups) involve greater numbers of all ages. Overall, business tourists tend to be higher-spending than leisure visitors (particularly those from outside the UK).
The organisers of business meetings/events have equally specific requirements. Whether the event is national, regional or local in scale, the most important requirement is accessible locations with good transport links. Organisers also insist on value-for-money. They are increasingly interested in bespoke and tailored meeting packages (rather than an ‘off-the-shelf’ option) and can be enticed by special offers and additional ‘perks’ for attendees. The organisers of larger business events will expect a destination to offer a dedicated ‘one stop shop’ conference bureau.
The business tourism sector has been affected by the recession just as much as the leisure market. The organisers of business meetings/events are increasingly looking for value-for-money from their venues and, since they have so many destinations to choose from, are prepared to shop around for the best deals. Business travellers are also increasingly looking to cut their personal costs (particularly since many do not expect to be fully reimbursed for their business travel). Therefore they are increasingly using budget hotels.
WHAT ARE THE OPPORTUNITIES? It’s not the case that seaside towns aren’t of much interest to the MICE sector – far from it! The organisers of business meetings and events are willing to give new destinations a try if they offer value for money and good transport links. There is increasing interest in unusual venues - meaning that the seaside has much to offer. The not-for-profit sector (associations, charities, special interest groups and the public sector) is more flexible about where it holds its meetings so that seaside towns can target this market. Seaside towns are also wellplaced to cater for business events with a regional/local focus. The health benefits of the seaside are increasingly attractive to the business sector, while the traditional associations of the seaside with ‘getting away’ make it an ideal place for creative retreats intended to inspire innovation.
WHAT DO CUSTOMERS WANT? Business travellers are demanding customers and, even if travelling on a budget, have specific requirements. Above all else they expect fast, reliable (and free) Wi-Fi from their meeting venues and accommodation. They will also want quiet accommodation with plenty of desk space. They appreciate fast check-in options; the provision of an iron and trouser press; and the opportunity to eat healthily. When attending business meetings, 2
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Sector Guide: Business Travel and Tourism
Ways it can make a difference to your business........................ 1. HAVE YOU CONSIDERED ALL THE OPPORTUNITIES REPRESENTED BY BUSINESS TOURISTS? THEY ARE LESS SEASONAL AND HIGHER SPENDING THAN LEISURE TOURISTS. IT’S NOT THE CASE THAT CONFERENCES AND BUSINESS EVENTS STICK TO THE WELLESTABLISHED VENUES. SOME SECTORS ARE INTERESTED IN NEW OR UNUSUAL VENUES AND SEASIDE TOWNS HAVE A LOT TO OFFER. 2. FREE, FAST AND RELIABLE WI-FI IS A BASIC NECESSITY FOR TODAY’S BUSINESS TRAVELLERS, NOT AN OPTIONAL EXTRA. DOES YOUR ACCOMMODATION OR VENUE OFFER THIS? 3. MORE THAN 8 OUT OF 10 BUSINESS TRAVELLERS CHOSE TO WORK IN THEIR HOTEL BEDROOMS. THEREFORE THEY WILL WANT PLENTY OF WELL-LIT DESK SPACE. DO YOU HAVE THE OPPORTUNITY TO OFFER THIS IN SOME OF YOUR ROOMS? 4. BUSINESS TOURISTS TEND TO BE VERY TECHNOLOGY-SAVVY. CAN YOU OFFER ONLINE BOOKINGS, CONTACTLESS PAYMENTS OR CHECKIN BY SMARTPHONE/TABLET? AND DON’T FORGET A SOCIAL MEDIA PRESENCE SO THAT GUESTS CAN ‘CHECK IN’ OR ‘TAG’ THEIR ACCOMMODATION/VENUE ON FACEBOOK AND TWITTER. 5. B USINESS TOURISTS CAN GENERATE EXTRA LEISURE TRADE FOR YOU. MANY BUSINESS TRAVELLERS ARE KEEN TO BRING THEIR PARTNER WITH THEM SO WHY NOT LET THEM DO SO FOR FREE? SIMILARLY, MANY ARE KEEN TO EXTEND THEIR STAY FOR A NIGHT OR TWO – CAN YOU OFFER THEM INCENTIVES OR DISCOUNTS TO DO SO? 6. M ANY BUSINESS TRAVELLERS ARE INTERESTED IN RETURNING TO THEIR BUSINESS DESTINATION ON A FAMILY HOLIDAY. CAN YOU PROVIDE LOYALTY SCHEMES OR DISCOUNTS TO ENCOURAGE THEM TO DO SO? 7. B USINESS TRAVELLERS INCREASINGLY WANT TO BE HEALTHY ON THEIR TRAVELS. CAN YOU OFFER THEM HEALTHY EATING (INCLUDING CATERING FOR ANY SPECIAL DIETS?). EVEN MAKING SPACE IN BEDROOMS FOR YOGA OR STRETCHING CAN BE APPEALING TO THE HEALTH-CONSCIOUS BUSINESS TRAVELLER. 8. C AN YOU OFFER YOUR BUSINESS GUESTS A BESPOKE MEETING PACKAGE TAILORED TO THEIR SPECIFIC NEEDS? THE ORGANISERS OF SUCH PACKAGES INCREASINGLY WANT SUCH PACKAGES (WITH PLENTY OF ADDED PERKS). 9. DOES YOUR RESORT HAVE A CLEARLY RECOGNISABLE CONFERENCE OFFICE OR BUREAU? THE ORGANISERS OF BUSINESS MEETINGS AND CONFERENCES WILL EXPECT TO WORK WITH SUCH A BUREAU. 10. DOES YOUR RESORT OFFER A FREE SMARTPHONE/TABLET APP ORIENTATED TOWARDS THE BUSINESS TRAVELLER AND EVENT ORGANISER?
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Sector Guide: Business Travel and Tourism
CASE STUDIES OF GOOD PRACTICE The Floral Pavilion, New Brighton _ www.floralpavilion.com Recently rebuilt, the Floral Pavilion is an award-winning conference centre which is the cornerstone of a strategy to use carefully targeted business tourism to help regenerate a declining resort. Premier Inn _ www.premierinn.com Premier Inn has won many awards for its attention to detail in catering for its business travellers. Guests praised spacious rooms, good locations and value for money. VisitBrighton _ Android/iPhone app This is a well-constructed and easy-to-use app containing a wide range of useful information for the business traveller. It demonstrates the possibilities for seaside towns to develop their own resort apps orientated towards the business traveller. WHERE TO GET HELP AND FURTHER INFORMATION The Business, Visits and Events Partnership www.businesstourismpartnership.com British Meetings and Events Industry Survey (published annually) www.meetpie.com National Coastal Tourism Academy www.coastaltourismacademy.co.uk 4