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NWDA Business Tourism Survey Results

November 2008 Ben Moxon


© 2008 Arkenford Ltd

Incidence of business trips • 26.6m people work 16+ hours per week in GB • 13% of these individuals have made a business tourism trip to or within the Northwest in the past 6 months • Incidence is naturally higher the closer the respondent lives to the Northwest • Gtr Manchester accounts for twice the incidence of all the other sub regions


© 2008 Arkenford Ltd

Volume of business tourism trips • 25.6m business tourism trips made to the Northwest annually • 7.6 million involve an overnight stay • WTO business tourism definition reduces the volume by approximately 50%


© 2008 Arkenford Ltd

Value of business tourism • Annual value of business tourism = £2.1bn • Accommodation accounts for half of all pre travel spend • On trip, travel, accommodation and food and drink account are main expenditures •

Accommodation only relevant for 30% of business trips Personal discretionary spend accounts for 15% of total


© 2008 Arkenford Ltd

Purpose of trips

• Meetings account for a third of all business trips to the Northwest • Contract work includes skilled trades and construction work


© 2008 Arkenford Ltd

Occupation of business travellers • The three most skilled occupation classes account for majority of business trips

Elementary Occupations

Process, Plant And Machine Operatives

Sales And Customer Service Occupations

Personal Service Occupations

• Skilled trades also account for significant volume

Skilled Trades Occupations

Administrative And Secretarial Occupations Associate Professional And Technical Occupations Professional Occupations

Volume of trips (000's)

,0 7

,0 6

,0 5

,0 4

,0 3

,0 2

,0 1

-

Managers And Senior Officials


© 2008 Arkenford Ltd

Where these trips originate from • 9m trips from within the NW

10,000 9,000 8,000 7,000 6,000 5,000

Cumbria

Gtr Manchester

Merseyside

Cheshire

Lancashire

• London’s importance and transport links stimulate 3m trips annually

m lu o 's)V 0 ( eftrip

4,000 3,000 2,000 1,000 -

• Neighbouring regions also account for c3m trips each


NWDA Business Tourism Workshop

November 2008 Ben Moxon


Š 2008 Arkenford Ltd

Occupations most likely to do certain purposes

All trips Meeting Contract work Training Conference Sales call Work placement Seminar Trade fair/ exhibition Company outing Sabbatical

All respondents 25,642 32% 17% 9% 7% 5% 5% 4% 3% 2% 1%

Managers And Senior Officials 6,430 50% 11% 8% 8% 3% 1% 5% 5% 2% 0%

Associate Professional Administrative Personal Professional And Technical And Secretarial Skilled Trades Service Occupations Occupations Occupations Occupations Occupations 4,285 3,963 1,396 3,148 1,364 37% 32% 27% 14% 28% 9% 14% 13% 39% 6% 11% 12% 17% 6% 5% 10% 9% 13% 2% 7% 5% 7% 2% 2% 4% 6% 4% 0% 7% 10% 6% 3% 6% 1% 1% 2% 1% 3% 3% 4% 1% 1% 2% 2% 5% 1% 0% 1% 1% 0%

Sales And Customer Service Occupations 1,488 35% 0% 6% 5% 33% 1% 0% 2% 3% 1%

Process, Plant And Machine Operatives 1,812 7% 48% 5% 0% 0% 16% 0% 0% 1% 0%

Elementary Occupations 1,757 11% 19% 8% 9% 2% 11% 4% 0% 0% 1%


© 2008 Arkenford Ltd

Duration of business trip by origin region • 70% of NW business trips involve no overnight stay • More local respondent is the more likely the trip will be a day trip • Cumbria has highest propensity of overnight business trips – 41% Cumbria c.f. 30% NW


© 2008 Arkenford Ltd

Trips extended for leisure Business trips

Volume Extended for leisure

All trips of 1 night or more

7.7m

33%

Cumbria for 1 night or more

1.2m

41%

Gtr Man for 1 night or more

2.6m

32%

Cheshire for 1 night or more

1.0m

40%

Merseyside for 1 night or more

1.6m

25%

Lancashire for 1 1.3m night or more

29%

• Cumbria is the sub region with the highest propensity of trips extended for leisure – Appeal of the Lake District?

• Extensions for leisure more likely to occur if purpose of trip is a seminar, trade fair/ exhibition or a sabbatical


© 2008 Arkenford Ltd

Day of week for business trip 0% Monday Tuesday Wednesday Thursday Friday Saturday Sunday

5%

10%

15%

20%

25%

• Earlier in the week is favoured for NW business trips • Wednesday is the preferred day – Splits the working week


© 2008 Arkenford Ltd

Discretionary destination choice % of trips discretionary

• Destination for majority of business trips not decided by person attending – Someone else decides – Where the work is – Visiting clients/ suppliers office

• If destination is chosen then more likely to be Cumbria

15% 17% 15% 27% 22%

18%


© 2008 Arkenford Ltd

Discretionary destination choice • Sales calls would appear to be discretionary in terms of the destination choice – More likely respondent has chosen to target a company in that area so it is less likely to be the destination influencing the choice

Work placement 5% Contract work

12%

Sabbatical

41%

Company outing

12%

Trade fair/ exhibition

13%

Training

11%

Sales call

48%

Conference

21%

Seminar

14%

Meeting

16%

All NW trips

18% 0%

20%

40%

Yes I chose

60% No

80%

100%


© 2008 Arkenford Ltd

Group size and composition Any child in group Sabbatical

49%

Company outing

Stay trip

Any non business adult in group (no kids)

51%

67%

3% 9%

5+ business people

5%

4 business people

3%

33%

81%

20%

3 business people

7%

2 business people Cumbria

78%

22%

15%

1 business person

58% 0

Female

83%

All respondents

17%

88%

0%

20%

Business people only

40%

12%

60%

80%

100%

Non business people in party

20

40

60

80

% of trips

• 2.8 is average group size • 58% of trips conducted alone • 88% are conducted with business people only


© 2008 Arkenford Ltd

Modes of transport used for business trip to NW •

Car is most popular from all regions except London – Train provides quickest access to NW

Train also features from Yorkshire and the more peripheral regions 80% 70% 60% 50% 40% 30% 20% 10% 0% South East

London

South West

North East

North Yorkshire West East West Midlands Midlands

Private/ company car/ van

Train

Hire car/ van

East Flying

Scotland Wales


© 2008 Arkenford Ltd

Non car users transport booking 0%

10%

Internet with transport provider 11%

Telephone with transport provider

Face to face (at station, with driver, on the day) Company travel department Unsure/ did not book it personally

30% 24%

Internet through an agent/ third party

Telephone through an agent/ third party

20%

• Booking direct via internet as popular as going through company travel department

6%

• 1 in 5 did not book their transport personally

2%

– Tends to be lower occupation classes

10%

24%

22%


© 2008 Arkenford Ltd

Accommodation 0%

10%

20%

30%

40%

50%

60%

70%

80%

• 30% of business trips to NW involve an overnight stay

All staying trips

Cheshire

• Hotels are the accommodation of choice

Cumbria

• Guest house/ B&B and VFR account for 11% each

Gtr Manchester

Lancashire

• Guest house/ B&B more popular in Cumbria and Lancashire

Merseyside

Hotel

Guest house/ B&B

Stayed with friends or relatives

Residential conference centre

Apartment

Other

– Factor of what is available rather than pure choice


© 2008 Arkenford Ltd

Accommodation users • More likely to book accommodation directly with the provider – Internet favoured over telephone

• Almost a quarter did not book their accommodation personally

0%

10% 20% 30% 40%

Internet with accommodation provider

33%

Internet through an agent/ third party

9%

Telephone with accommodation provider Telephone through an agent/ third party Face to face (on the day) Company travel department Unsure/ did not book it personally

13%

3%

0%

18%

23%


© 2008 Arkenford Ltd

Value of business tourism • Annual value of business tourism = £2.1bn • Some elements may not provide spend specifically to NW – E.g. transport to NW

Pre booked business items Pre booked leisure items Business spend on trip Host/ other company spend on trip Personal spend on trip Total

£000's £918,010 £123,944 £828,897 £78,362 £161,039 £2,110,253


© 2008 Arkenford Ltd

Incidence of spending Transport Accomodation Events Training Total spend on pre-booked business items

Incidence 18% 17% 5% 5% 33%

Avg per spender per trip £ 49.22 £ 105.05 £ 66.91 £ 123.02 £ 108.12

• Transport Accomodation Events Attractions Total pre-booked spend on leisure items

Higher % spend out of own pocket when compared to host company spend ... ... But host companies in NW are more generous!

Avg per spender per trip Incidence 3% £ 41.28 4% £ 82.02 1% £ 23.85 1% £ 25.75 7% £ 64.61

Accomodation Event expenditure Entertaining, food and drink Souvenirs Shopping Travelling in the area Travel to the destination Total spend

A third of all business trips to NW consisted of some form of pre book spend Of course, a % won’t spend anything at all On the trip, visitors more likely to spend on food & drink and transport

Company paid (on expenses) Avg spend per spender per Incidence trip 8% £ 97.01 6% £ 69.59 22% £ 36.73 3% £ 21.52 3% £ 40.51 6% £ 18.94 23% £ 38.93 36% £ 88.95

Host/ other company paid Personal expenditure Avg spend per Avg spend per spender per spender per Incidence trip Incidence trip 1% £ 57.90 2% £ 39.64 1% £ 37.66 1% £ 15.02 3% £ 43.06 9% £ 19.64 0% £ 18.49 3% £ 13.77 0% £ 47.77 5% £ 28.14 0% £ 7.40 2% £ 10.83 1% £ 38.94 5% £ 25.50 5% £ 64.98 16% £ 38.45


© 2008 Arkenford Ltd

Discussion points • How to get more people to stay / extend trip – How to work with local businesses – How to get in contact with business travellers directly – How do we entice them / incentivise longer stays?

• How to get more people to return as a leisure visitor


For more information please contact: Crawford Christie at Arkenford Ltd Mount Manor House 16 The Mount Guildford Surrey GU2 4HS O1483 510 310 www.arkenford.co.uk


Š 2008 Arkenford Ltd


© 2008 Arkenford Ltd

Definitions • Business trip is outside the respondents usual environment (i.e. where they live, usually work, eat out and shop for groceries) • The wage or salary of the respondent is not paid by the company of person they are visiting in the Northwest. • If the person has made more than 6 trips to that specific destination over the 6 month period and they are not part of one off jobs, projects or assignments then they will be excluded as this would be classed as a regular trip. • The frequency of trips to the Northwest for unusual business trips has to be less than 26 trips in the past 6 months. This would equate to 2 or fewer trips per week. Anything more than this would be classed as frequent.

http://www.nwda.co.uk/docs/Business%20Tourism%20Top%20Line%20-%20IG%20Nov%2008  
http://www.nwda.co.uk/docs/Business%20Tourism%20Top%20Line%20-%20IG%20Nov%2008  

http://www.nwda.co.uk/docs/Business%20Tourism%20Top%20Line%20-%20IG%20Nov%2008.ppt

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