February 2010 EXECUTIVE SUMMARY

Transcription

1 February 2010 Corporate Travel Benchmark Report GetThere s Corporate Travel Benchmark Survey provides a summary of the online travel trends, savings and adoption techniques currently in use at leading companies around the globe. All results are based on December 2009 travel data as self-reported by each company s corporate travel department. EXECUTIVE SUMMARY Increasing GetThere Online Adoption Rates Corporate Online Adoption Benchmarks % 70% 60% 50% 40% 30% 20% 10% 0% 26% 43% 53% 60% 65% 68% 71% 73% 77% GetThere 2009 Corporate Travel Benchmark Survey 2 Industry averages based on PhoCusWright US Travel Distribution 2009 GetThere 1 77% Industry Average 2 51% to 2009, we need to get our people in front of our current and future customers. In an unprecedented year of economic downturn, 2009 was marked by companies slashing travel and looking for other collaboration alternatives. This trend is evidenced by the 85% of survey respondents who reported a decrease in overall travel spend for On a more optimistic note, 89% of respondents expect their 2010 travel spend to increase or remain the same, while 24% anticipate an increase of 10% or more. Additionally, 69% of respondents reported that their travel spend would rebound in three quarters or less with a positive turn in the global economy. While 2009 proved to be a year of demand management and finding creative alternatives to travel, the outlook for 2010 suggests companies will look hard at the return on investment for their overall business travel. One company executive stated that in order to bring our company back to the revenue generation we have seen in years prior In regards to travel demand by region this year, our survey indicates Asia as the top market, with responding companies expecting a 48% increase. North America came in second with a 42% increase, followed by Europe at 39%, Latin America at 33% and the Middle East at 22%. For the ninth consecutive year, companies have increased their online adoption using GetThere, reaching an average adoption of 77%, up four percentage points from a year ago. The average online adoption of GetThere s 10 highest-adopting companies is an unparalleled 98%. As the graph above depicts, GetThere s average adoption rate is well above the industry average of 51%, as based on PhoCusWright s US Travel Distribution, Although some companies exclude certain types of travel in their calculations, more companies continue to implement new online features that allow additional types of transactions to be booked online, thereby maximizing their online savings opportunities. Even in a year of reduced travel demand, the survey reveals that Average Online Adoption by Region companies continue to report significant cost-savings resulting from higher adoption: APAC 65% n 70% online agency fee savings EMEA 51% n 65% realized lower online booking rates vs. offline booking rates by using GetThere With Asia growing as a focus for many companies seeking to expand their online travel programs beyond the U.S., 2009 saw many moving their online programs into emerging markets like China, India and Japan. The average adoption rates by region range from a high of 98% to a low of 50% on GetThere. Latin America also proved to be a growing region, with more than 30% of companies deploying on GetThere since Latin America 63% North America 77% Domestic International Airfare Savings 19% 34% Hotel Savings 7% 14% Rental Car Savings 3% 16% Meetings and/or group travel averages 36% of a corporation s total global travel spend. Companies reported that 55% of meetings-related travel was for ad-hoc meetings rather than for large corporate events. In a related question, 66% said they are currently 2010 GetThere, using Proprietary or evaluating an online meeting planning tool this year. Page 1

2 KEY FINDINGS ONLINE ADOPTION: Average online adoption increased for the ninth consecutive year as companies reported an average of 77% adoption in 2009, up four points from 2008.The average of the ten highest online adoption rates is 98%. Online adoption is based on reported online bookings as a percentage of total bookings. GetThere s online adoption remains well above the industry average of 51%, according to PhoCusWright s US Travel Distribution 2009 Report. GLOBAL ONLINE ADOPTION: Companies continue to expand their online travel programs globally, with an overall adoption rate of 77%. Regional online adoption rates averaged 82% in Latin America, 75% in APAC and 72% in Europe. New online program expansion occurred in all regions, with primary growth in countries like Australia, Brazil and Germany. ADOPTION INITIATIVES: Top companies continue to cite executive support as the most effective factor driving online adoption; this year it rated 6.07 on a seven-point scale. Other effective methods include full or partial online mandates and special focus on key groups (such as road warriors). Survey respondents rank mandates as the second most effective adoption technique, with 82% of companies using or considering either full or partial mandates. ONLINE SAVINGS: Agency Savings 81% of companies reported having tiered transaction fees set up with their travel agency. Online agency fee savings averaged 70%. Airfare Savings 65% of companies reported lower airfares booked online compared to those booked with their travel agency. Their average savings was 19% domestically and 34% internationally. Hotel Savings Companies reported lower nightly hotel rates booked online compared to those booked offline with 7% savings domestically and 14% internationally. Average rental car rate savings were 3% domestically and 16% internationally. COST REDUCTIONS: Eighty-nine percent of companies cited travel and 67% cited meetings as the top areas to focus on when evaluating cost-cutting measures, followed by workforce reductions (56%) and advertising/marketing and employee benefits (23% and 14%, respectively). The most effective tools cited for reducing travel expenditures included adjustments in travel policy, utilization of online booking tools and use of restricted airfares along with limiting/reducing employee travel. MAJOR CHANGES: With 72 percent of responses, reviewing corporate policy once again takes the top spot for change(s) being considered for the travel program. Other major changes under consideration include integrating events/meetings into online booking (34%) and a review of travel agency/fulfillment partner (28%). Travel responsibilities continue to focus on consolidating travel agencies (70%), monitoring traveler security (70%), globalizing travel programs (68%), integrating meeting travel into online (53%) and combining online booking with expense management tools (47%). Eighty-two percent of companies are mandating or considering mandating. Companies that mandate experience a 79% adoption average, compared to 60% adoption for those that do not mandate. E-FULFILLMENT: Eighty percent of companies are either using or considering an e-fulfillment center. The average touchless fulfillment rate (bookings that do not require human intervention to ticket) is 80%, while low-touch bookings average 20%. SITE FEATURES: With more than 80% of clients using travel arrangers, the Travel Arranger Portal continues to be GetThere s most popular site feature. Other key features companies are using to drive adoption and cost-savings with GetThere include the use of multiple sites at 63%, as well as Hold Trips, Rail and Portal Registration/Single Sign On all with more the 50% usage. Online Ticket Voids, Exchanges and Full Refunds continues to grow in activations with a 20 percentage point leap from 2008 to 37%. Other popular features for 2009 included Hotel Custom Notes and Hotel Tiered Preferencing. Features like these not only help companies focus on improving their hotel program, but also empower travelers and improve their overall user experience. ONLINE MEETINGS: Seventy-six percent of companies said they are currently using or evaluating an online meeting planning tool for Companies using an online meeting planning tool reported 66% of their total meetings were planned online and 68% of their meeting travel was booked online. Companies from all over the globe and from various industries are represented in the 2010 survey results, indicating that companies of all sizes continue to evaluate savings metrics and expand their travel programs to take advantage of online savings opportunities. Methodology - The GetThere Corporate Travel Benchmark Report is based on survey responses from leading companies and organizations that currently use the GetThere online booking tool. Sent to more than 200 GetThere clients, the online survey received a 35% response rate. Please direct any questions about the report to adoptionconsulting@getthere.com. The 2010 GetThere GetThere, Benchmark Proprietary full report is available to GetThere customers on the GetThere Connection or from your Customer Success Manager. Page GetThere, Proprietary

3 DEMOGRAPHICS Primary Agency Carlson Wagonlit Travel (CWT) 37% BCD Travel 22% American Express 18% Travelocity Business 14% Other 6% In-House Travel Department (CTD) 0% Primary Region North America 85% EMEA 10% Latin America 3% Asia / Pacific 1% Primary Industry Financial 20% Technology 17% Consumer Products 11% Professional Services - Non 9% Financial Manufacturing 9% Healthcare 6% Oil & Gas 5% Education 3% Insurance 2% Telecommunications 2% Other 8% Primary Region within North America Northeast 26% Midwest 14% Mid-Atlantic 12% New York City 11% Southeast 9% Northwest 7% Southwest 7% North Central 4% South Central 4% Canada 2% Other 5% Travel Profiles Reside Within GetThere 59% With our agency 29% Within the GDS 6% Within our company 3% Other 2% Analysis: Respondents to the survey represent a broad cross section of companies in major industries that partner with all the major travel management firms and GDSs. While a large percentage is U.S.-based, nearly 60% have launched GetThere globally. Note: Rounding may result in totals that are not exactly 100% GetThere, Proprietary Page 3

4 TRAVEL METRICS Annual Global Air Spend Less than $4.9M 19% $5M to $9.9M 10% $10M to $24.9M 21% $25M to $49.9M 12% $50M to $99.9M 16% $100M or more 21% Travel Department Reports To: % Procurement 32% Finance 35% Corporate / Shared Services 15% Administration 6% Human Resources 6% Other 5% Average Ticket Price Overall (Roundtrip, Dec 08) North America $419 International (Outside North America) $1,884 Average Car Rental Rate Overall (per Day, Dec 08) North America $45 International (Outside North America) $53 Average Hotel Rate Overall (per Night, Dec 09) North America $142 International (Outside North America) $185 Primary GDS Sabre 72% Apollo 15% Multiple GDSs 5% Worldspan 4% Amadeus 3% Galileo 1% Implemented on GetThere Less than one year 5% 1-2 years 22% 3-4 years 15% 4-5 years 11% 5+ years 48% Analysis: The Benchmark Survey represents a balanced cross section of small- to large-market companies as determined by their annual travel spend. The majority or survey respondents (67%) report to either procurement or finance, which has grown from 55% in Average Ticket Price (ATP) for North America declined for the second year in a row. International roundtrip ATP decreased as well, by more than 20% over Hotel rates for both North America and outside North America were also down substantially, by 15% and 27% respectively. These decreases are reflective of overall industry averages in 2009 and appear to be a result of the decline in hotel occupancy, which can be attributed to the economy. Car rental rates also trended down. North America s average rate dropped by 4% and outside North America rates were down by 15% over GetThere, Proprietary Page 4

5 TRAVEL Demand Forecast Compared to peak years of travel, how did your overall 2009 TRAVEL SPEND CHANGE? Decreased considerably 41% Decreased somewhat 45% Remained the same 9% By what percentage do you anticipate your 2010 TRAVEL BUDGET TO CHANGE vs. 2009? Decrease more than 20% 3% Decrease by 16-20% 3% Decrease by 11-15% 9% Decrease by 6-10% 6% Decrease by 1-5% 0% Remain the same 6% Increase by 1-5% 27% Increase by 6-10% 21% Increase by 11-15% 15% Increase by 16-20% 9% Increase more than 20% 0% What percentage of your travel budget is allocated toward EMERGING MARKETS? Less than 10% 16% 11-20% 13% 21-30% 2% 31-40% 0% 41-50% 0% More than 50% 0% Don t know 52% None 16% 2010 GetThere, Proprietary Page 5

6 If the GLOBAL ECONOMY rebounds significantly in 2010, how quickly would your travel spend be affected? Immediately 16% By the next quarter 20% Within 2-3 quarters 33% More than 3 quarters 14% Would not be impacted 17% How has the ECONOMIC STATE impacted your travel program and/or negotiations with your preferred carriers? (Multiple answers allowed) Answer Plan to decrease corporate travel spend 39% Plan to use more Web and/or video-conferencing in place of in-person meetings 51% Preferred carriers have renegotiated a better corporate discount 47% Have begun negotiations with new preferred carriers 29% Have started evaluating car and/or rail options over flying 17% Preferred carriers have renegotiated a less desirable corporate discount 7% None of the above 17% Other 2% Has the use of RAIL and/or DRIVING OPTIONS supplanted air travel in select short-haul city pairs in 2009? Answer Yes 28% No 47% Don t know 25% Do LOW-COST CARRIERS continue to impact your corporate travel program? Answer Yes 75% No 25% 2010 GetThere, Proprietary Page 6

7 Which regions is your company feeling pressure to add more LOW-COST CARRIERS or NON-GDS AIRLINES? Answer Asia 39% Australia / New Zealand 13% Canada 9% EMEA 38% Mexico 3% South America 3% United States 63% Has your company CONSOLIDATED TRAVEL with ONE TRAVEL AGENCY? Answer North America 88% EMEA 69% Globally 46% Will your COMPANY SPEND less, about the same or more on corporate travel in 2010 compared to 2009? Answer Less 11% The same 47% More 42% Reasons for PLANNING TO SPEND LESS in 2010 on corporate travel (Multiple answers allowed) Answer Using more negotiated rates 71% Fewer trips 57% Current economic conditions causing concern about travel budget 57% Using more video-conferencing options 57% Increased use of low-cost travel suppliers 57% Increased policy compliance 43% Implemented policy on advance purchase rules (7-day, 14-day, etc.) 43% Travel costs in our company markets are down 29% Planning less international travel 29% Implemented policy for internal (employee-only) meetings 14% Offset expectation of lower company revenues 14% 2010 GetThere, Proprietary Page 7

8 How will TRAVEL DEMAND will be affected in 2010: Region Increase Decrease Stay the Same Asia 48% 4% 48% Europe 39% 14% 47% Latin America 33% 7% 59% Middle East 24% 9% 69% North America 22% 13% 45% When considering CUTTING COSTS, what are the three initial areas that are primarily focused on to save money? Travel Costs 89% Corporate Meetings 67% Workforce Reductions 56% Advertising / Marketing 23% Employee Benefits 14% Research & Development 6% Production / Manufacturing 3% Other 15% Please rate the EFFECTIVENESS of the following methods to REDUCE COMPANY TRAVEL COSTS. Question Overall Mean (1-7 scale, 7 most effective) Limit / Reduce employee travel 5.44 Adjust travel policies 5.31 Use of online booking tool 5.23 Purchase restricted vs. non-restricted airfares 4.73 Implement other collaboration tools, i.e. TelePresence, WebEx 4.63 Implement better tracking 4.60 Pre-Trip approval process 4.19 Reduce hotel rate limit 4.17 Utilize dynamic/customized messaging on travel site 3.81 Reduce / consolidate suppliers 3.80 Implement per diems 3.51 Switch travel providers GetThere, Proprietary Page 8

9 What is the approximate PERCENTAGE OF TRANSACTIONS that comply with COMPANY PREFERRED VENDORS? Answer % of complying Expense Tool transactions 96% % of complying Rail transactions 92% % of complying Car Rental transactions 90% % of complying Airline transactions 79% % of complying Hotel transactions 69% Approximately what percentage of your company s total transactions are made by TRAVEL ARRANGERS/EXECUTIVE ADMINISTRATORS? Answer <10% 5% 10-20% 22% 21-30% 20% 31-40% 12% 41-50% 14% >50% 27% Analysis: In an extraordinary year of global economic recession, nearly 90% of companies reported their overall travel spend decreased in 2009 vs marking a second straight year of decreasing overall travel spend. The economic conditions led to tighter controls around travel budgets, resulting in fewer trips and a greater focus on policy compliance. On the upside, a majority of companies predicted that 2010 would bring an increase in travel demand, with Asia and Europe leading the way for emerging markets. For the third year in a row, focusing on travel costs remains the number one area for most companies to reduce overall costs. Respondents also cited adjusting travel policy and enforcing use of the online booking tool as effective ways for controlling travel costs. Additionally, corporate meetings has a growing number of companies looking at ways to control costs associated with event and ad hoc meetings, and how to effectively incorporate/integrate meeting planning into their online travel program. While companies were attempting to reap cost-savings by limiting or reducing employee travel in 2009, almost 90% expect their travel spend to either increase or stay the same in The largest growth areas noted are in the North America and Asia regions, with a 42% and 48% increase respectively GetThere, Proprietary Page 9

10 ONLINE ADOPTION Compared to peak years of travel, how did your overall 2009 TRAVEL SPEND CHANGE? Average Online Adoption by Region Average Adoption APAC 65% EMEA 51% Latin America 63% North America 77% Adoption by Company Air Volume Average Adoption <$4.9 M 92% $5M - $9.9M 71% $10M - $24.9M 75% $25M - $49.9M 79% $50M - $99.9M 90% >$100M 69% Adoption by Industry Average Adoption Consumer Products 75% Defense Contractor 77% Education 95% Financial 72% Government/Public Sector 78% Healthcare/Pharmaceuticals 74% Manufacturing 84% Oil & Gas 78% Professional Non-financial 84% Technology/Software 82% Telecomm 84% Other 76% Adoption by Years on GetThere Average Adoption Less than one year 95% 1-2 years 79% 3-4 years 73% 4-5 years 73% 5+ years 77% Analysis: Companies using GetThere increased their online adoption rates for the ninth consecutive year. The reported North America median of 73% adoption in 2008 was up from 71% in The top ten highest online adoption rates averaged 92%. Note: Online adoption is based on reported monthly online bookings as a percentage of total monthly bookings GetThere, Proprietary Page 10

11 GLOBAL ONLINE ADOPTION Average Online Adoption by Region Average for 2008 Average for 2009 APAC 52% 75% EMEA 50% 72% Latin America 71% 82% North America 73% 77% APAC Average Adoption Australia 73% China 98% Hong Kong 68% India 59% Japan 66% Korea 98% New Zealand 80% North America Average Adoption Canada 55% United States 73% Latin America Average Adoption Argentina 78% Brazil 90% Chile 100% Colombia 92% Costa Rica 92% Mexico 69% Peru 86% Puerto Rico 73% Venezuela 55% EMEA Adoption Average Adoption Austria 77% Belgium 70% Czech Republic 83% Denmark 70% Finland 84% France 51% Germany 61% Hungary 77% Italy 74% Norway 82% Poland 85% Spain 70% Sweden 75% Switzerland 85% The Netherlands 54% United Kingdom 50% Analysis: Although some countries saw a slight decline year-over-year in adoption, this is a reflection of more companies reporting that they have expanded their online travel programs globally. Note: Regional averages are a result of averaging all countries adoption within that region from the companies responding to the benchmark survey GetThere, Proprietary Page 11

12 Calculating ONLINE ADOPTION RATE: Answer Based on all travel bookings 39% Excludes some meetings and group travel bookings 18% Excludes some non-employee (contractors, recruits, etc.) bookings 18% Excludes some international bookings 13% Excludes some executive or VIP travel bookings 11% Analysis: Companies that calculate online adoption rates based on all bookings are seeing a higher adoption average than those that exclude certain types of transactions. Those including all transactions in their adoption rate saw an average 78% online adoption in North America. These metrics are a clear indication that more companies increasingly include various types of travel such as non-employee, executive, meetings and international travel in their online programs. Companies have noted that they are able to further reduce overall travel by including these previously excluded bookings. Which best describes your COMPANY S POLICY REGARDING MANDATING the use of online booking? Answer Have a partial online mandate 31% Have a full online mandate for domestic travel 27% Not using or considering a full or partial online mandate 18% Considering a partial online mandate 10% Have a global online mandate 6% Considering a full online mandate 2% Other (e.g. executive endorsement or charge back) 6% Analysis: Full mandates continue to be more commonplace for domestic travel. Mandates rose from 19% in 2007 to 26% in 2008 to 31% in Seventy-two percent of companies are either using or considering full or partial mandates. Companies with mandates enjoy much higher adoption than those that do not mandate. In North America, companies with a mandate average 79% adoption, while those without mandates average 60% adoption. Is your company using a CENTRALIZED E-FULFILLMENT CENTER for processing bookings and tickets? Yes, for all bookings 56% Yes, for online bookings only 19% No, but considering this year 5% Not using or considering 20% Average Fulfillment Rate Average No-Touch (Touchless) Fulfillment Rate 80% Average Low-Touch Fulfillment Rate 20% Analysis: Usage of e-fulfillment centers ticked up slightly year-over-year by five percentage points. Companies using e-fulfillment centers saw an average adoption rate of 77% vs. 61% for those that did not. The average touchless fulfillment rate (the percentage of bookings not requiring human intervention to ticket) went down slightly to 80% in 2009 vs. 82% in GetThere, Proprietary Page 12

13 Most Effective Online Adoption Techniques Overall Mean (1-7 scale, 7 most effective) Executive support or endorsement 6.07 Full or partial online mandates 5.52 Special focus on key groups (arrangers, road warriors, etc.) 5.34 Active support from travel agency 5.33 Improving online tool, including adding access to regional content 5.30 Active support from online booking provider 5.26 Ongoing communications campaign 5.07 Orientation/training sessions (online or in-person) 5.02 Defined adoption and savings goals 4.72 Chargebacks to travelers or departments 4.00 Analysis: The most effective technique for driving online adoption continues to be executive support. Since this survey has been introduced, it has been cited as one of the top techniques each year. Companies that rated executive support with a seven rating (most effective) average 80% adoption vs. 65% adoption for those that did not GetThere, Proprietary Page 13

14 Booking Site Features currently in use (Multiple answers allowed) Currently Using Travel Arranger Portal 80% Multiple Subsites 63% Hold Trips 51% Portal Registration / Single Sign On 51% Rail Amtrak 51% PNR Acquisition 49% Dynamic Messaging 47% WebConnect Access 40% Online Ticket Exchange Full Refunds/Voids 37% Pre-Trip Approval 36% Super PNR Capabilities 36% Hotel Custom Hotel Notes 35% Online Ticket Exchange Exchanges 35% Hotel Tiered Preferencing 33% Dining Reservations 27% Activities 17% Ground Transportation (car for hire, limos, taxis) 13% Rail Europe Rail Providers 13% ijet 11% Analysis: Introduced in 2008, the Travel Arranger Portal has quickly become the most popular site feature used by responding companies. Coming in second is the use of subsites, which allow companies to provide online booking information through the GetThere tool to multiple segments such as regional, non-profiled traveler and divisional subsites. Companies have cited additional site features help grow their adoption and reduce overall costs. These online site features include Hold Trips, Single Sign On and Rail. As companies not only focus on reducing costs but also increasing end-user satisfaction, they are empowering travelers with the necessary tools and information to make informed, economical decisions. By doing so, they get travelers buy-in and positively impact the bottom line GetThere, Proprietary Page 14

15 ONLINE SAVINGS What is the basis of your ECONOMIC RELATIONSHIP with your PRIMARY AGENCY? No agency contract 2% Management fee 10% Transaction fee 75% Revenue share 2% Cost-Plus 7% Other 5% Does your company have a TIERED TRANSACTION FEE structure in place with your primary travel agency? Yes 81% No 19% Has your company realized LOWER TRAVEL AGENCY FEES for online bookings in 2009? Yes 65% No 35% Average Online Agency Savings 70% Analysis: Companies that implemented tiered transaction fees with their travel management firm went up nearly 20 percentage points over Average online transaction fee savings was 70%, representing a $35 savings on a typical $50 offline transaction fee. Has your company realized LOWER AIRFARES for online bookings vs. agency bookings? Answer Yes 65% No 35% Average Airfare Savings Inside U.S. 19% Average Airfare Savings Outside U.S. 34% Analysis: Companies realized a savings in airfares for online bookings over offline bookings, however, only 65% saw lower fares, down from 80% in Online airfare savings averaged 19% domestically and 34% internationally, up from 12% and 30% respectively. This represents $80 savings on the reported average ticket price (ATP) domestically and $640 internationally GetThere, Proprietary Page 15

16 Has your company realized LOWER HOTEL RATES for online bookings vs. agency bookings? Answer Yes 41% No 59% Average Hotel Savings Inside U.S. 7% Average Hotel Savings Outside U.S. 14% Analysis: The percentage of respondents realizing lower hotel rates online increased substantially from the 33% figure in For companies tracking this metric, online nightly hotel rate savings averaged 7% domestically and 14% internationally. This represents a $10 savings domestically and $26 savings internationally, based on a $200 nightly rate. Savings decreased year-over-year due in part to the decreasing hotel rates seen worldwide. Has your company realized LOWER CAR RENTAL RATES for online bookings vs. agency bookings? Answer Yes 22% No 78% Average Car Savings Inside U.S. 3% Average Car Savings Outside U.S. 16% Analysis: Daily car rental rates is an additional online savings metric and for companies tracking this metric, online daily car rental rate savings averaged 3% domestically and 16% internationally. As more companies move toward preferred car programs, rates are leveling for both online and offline transactions.. What percentage of your company s overall tickets issued were VOIDED, REFUNDED OR EXCHANGED? Average % Voids 9% Refunds 8% Exchanges 17% Has your company been able to negotiate a REDUCED ONLINE FEE with your TMC for processing Voids, Refunds and/or Exchanges? Yes 41% No 59% Analysis: Companies are utilizing GetThere s Online Ticket functionality to enjoy even more online savings. More than a third of participating respondents indicated their companies currently use this feature, while another third indicated they are considering using it in These companies not only realize the savings associated with putting these transactions online, but also with reduced travel management fees, as indicated by 41% of respondents, up from 31% in Additionally, for rebooked airfare there is the potential for online airfare savings of 19% domestically and 34% internationally GetThere, Proprietary Page 16

17 TRAVEL PROGRAM METRICS TRAVEL RESPONSIBILITIES included in travel department s realm (Multiple responses allowed) Consolidating travel agencies 70% Monitoring traveler security 70% Travel program globalization 68% Integrating meeting travel into overall travel program 53% Adding mobile tools for travelers 50% Combining online booking with expense management tools 47% Identifying a single corporate card solution 40% Evaluating other options over travel, i.e. TelePresence, WebEx 33% Sustainable travel for carbon neutralization 30% Online leisure booking options for employees 28% Consider social networking aspects to travel/meetings program 20% Other 7% What MAJOR CHANGES to your corporate travel program are you considering this year? (Multiple responses allowed) Review of corporate travel policies 72% Review of online booking provider 36% Considering integrating meetings / events into online booking 34% program Review of corporate travel agency / fulfillment partner 28% Integrating travel and expense management programs 28% Considering other modes of collaboration beyond travel, i.e. 26% TelePresence units Review of Global Distribution System (GDS) provider 23% Outsourcing online booking site management 13% Considering an in-house corporate travel department (CTD) 4% Other 8% Analysis: Travel managers indicated they continue to see their role expanding beyond the basic travel program. The majority of respondents reported their primary focus as consolidating travel agencies and monitoring security. These trends go hand-in-hand with the increasing number of companies expanding globally. Overall, the travel manager role continues to expand with an eye on integrating more platforms within their online booking tool, including expense management and meeting tools GetThere, Proprietary Page 17

18 Does your company REIMBURSE your travelers for the following ancillary fees? (Multiple responses allowed) First checked bag fee 97% Second checked bag fee 62% On board food & beverage 40% On board Wi-Fi 31% Preferred seat fee 19% Blanket & pillow charges 14% On board entertainment 9% Speedy boarding 9% On board TV, video, movies 3% Analysis: While airlines continue to add more ancillary fees beyond traditional airfare, more companies are reimbursing travelers for baggage fees in addition to food and beverage and Wi-Fi. This has helped travel managers deliver a better traveler experience, but has also created difficulty in capturing the data around these fees GetThere, Proprietary Page 18

19 ONLINE MEETING PLANNING Company s Meeting Metrics % of Company s total travel that is meeting-related 36% % of Meeting travel booked online 68% % of Total meetings that were ad-hoc (not large corporate events) 55% % of Total meetings planned using an online meeting tool 66% Company s level of interest in MEETING PLANNING TOOLS Currently using an online meeting planning tool 34% Will evaluate online meeting planning tools in % Not interested in online meeting planning tools 19% Evaluating online meeting planning tools this year 10% Other 6% Benefits of Online Meeting Tool (Multiple responses allowed) Greater visibility and control over meetings 85% Reduced time tracking RSVPs 67% Increased use of preferred hotels and negotiated discounts 64% Reduced time sending meeting invitations 59% Reduced overall time to book groups 51% Savings from increased online adoption 49% Reduced time searching for meeting locations 49% Reduced time sending meeting RFPs 41% Other 3% Analysis: Companies are increasingly focused on tighter controls around their meeting expenditures, with more than 81% either currently implemented or evaluating online meeting solutions. The average of meeting travel booked online rose for the third straight year, with 66% of all meetings planned using an online meeting solution. This gives a clear indication that companies are reining in meeting spend and evalutating integrated options. More companies have realized the greater visibility and control a meeting tool brings to their overall travel program, increasing seven percentage points from 78% in A large percentage of companies saw additional benefits from an online meeting tool, such as highlighting the company s preferred hotels and negotiated discounts GetThere, Proprietary Page 19

20 Average Travel Costs Overall, by Air Volume, by Region, by Industry AVERAGE TRAVEL COSTS Overall (in $USD) Average Ticket Price ($USD) Domestic (inside North America) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) $419 $142 $45 Average Ticket Price ($USD) International (outside North America) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) $1,884 $185 $54 AVERAGE TRAVEL COSTS BY AIR VOLUME (in $USD) Company Air Volume Domestic (inside North America) Average Ticket Price ($USD) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) < $4.9 M $423 $138 $49 $5 - $9.9 M $366 $148 $44 $10 - $24.9 M $400 $134 $45 $25 - $49.9 M $411 $137 $39 $50 - $99.9 M $436 $143 $46 >$100 M $457 $153 $46 Company Air Volume International (outside North America) Average Ticket Price ($USD) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) < $4.9 M $2,881 $110 $65 $5 - $9.9 M $1,490 $185 $48 $10 - $24.9 M $2,227 $208 $55 $25 - $49.9 M $2,126 $192 $48 $50 - $99.9 M $1,775 $184 $58 >$100 M $1,989 $178 $ GetThere, Proprietary Page 20

21 AVERAGE TRAVEL COSTS BY AIR VOLUME (in $USD) Company Air Volume Domestic (inside North America) Average Ticket Price ($USD) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) Mid-Atlantic $611 $128 $43 Midwest $364 $120 $41 New York $429 $185 $59 North Central $546 $123 $32 Northeast $379 $138 $46 Northwest $376 $152 $44 Southeast $300 $143 $38 Southwest $477 $156 $45 Company Air Volume International (outside North America) Average Ticket Price ($USD) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) Mid-Atlantic $2,360 $194 $45 Midwest $2,304 $180 $47 New York $1,495 $226 $63 North Central $1,438 $160 N/A Northeast $1,787 $192 $60 Northwest $2,889 $159 $95 Southeast $1,152 $152 $45 Southwest $1,859 $202 $ GetThere, Proprietary Page 21

22 AVERAGE TRAVEL COSTS BY INDUSTRY (in $USD) Company Air Volume Domestic (inside North America) Average Ticket Price ($USD) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) Consumer Products $340 $130 $46 Defense Contractor $798 $128 $40 Education $400 $115 $70 Financial $400 $176 $47 Gov t/public Sector $495 $133 $46 Healthcare/Pharma $425 $131 $43 Manufacturing $498 $102 $43 Oil & Gas $220 $110 $36 Professional Non Financial $393 $152 $43 Technology/Software $396 $142 $43 Telecommunications $574 $163 $47 Other $328 $118 $35 Company Air Volume International (outside North America) Average Ticket Price ($USD) Average Hotel Rate ($USD) Average Rental Car Rate ($USD) Consumer Products $2,566 $190 $46 Defense Contractor $1,425 $159 $35 Education $950 $125 $50 Financial $2,341 $221 $63 Gov t/public Sector $1,604 N/A N/A Healthcare/Pharma $1,798 $183 $54 Manufacturing $1,310 $153 $59 Oil & Gas $1,115 $140 $56 Professional Non Financial $1,922 $169 $59 Technology/Software $1,922 $169 $59 Telecommunications N/A N/A N/A Other $1,589 $125 $ GetThere, Proprietary Page 22

23 Expense Management & Emerging Travel Trends Does your company currently utilize an EXPENSE MANAGEMENT TOOL? Yes 73% No, but currently evaluating options 13% No, don t have plans to evaluate in % Which EXPENSE MANAGEMENT TOOL does your company currently utilize or evaluating? Ariba 2% Concur 24% Extensity (Infor) 6% IBM 8% PeopleSoft / Oracle 36% SAP 8% In-house tool 14% Other 2% How interested is your company in EXPENSE MANAGEMENT INTEGRATION with travel management systems? (1-7 scale, 7 extremely interested) 1 - Not Interested 27% 2 6% 3 6% 4 - Interested 25% 5 6% 6 17% 7 - Extremely Interested 13% Does your company have a mandated CREDIT CARD PROGRAM? Yes 86% No 14% 2010 GetThere, Proprietary Page 23

24 Which CREDIT CARD PROGRAM does your company utilize? American Express 58% Diner s Club 6% MasterCard 13% Visa 23% Other 0% What are the main MOBILITY OBJECTIVES for your travel program? Rank in order of importance with 1 being most important. Highest Importance Obtaining flight information (e.g., gates, delays, times, check-in) 1 Booking flights 2 Flight check-in 3 Rebooking on day of travel due to cancellations/delays 4 Booking hotels 5 Booking car/rail 6 Hotel check-in 7 Has your company implemented or considered incorporating GREEN CONCEPTS such as carbon footprint information into your travel program? Yes 42% No 58% 2010 GetThere, Proprietary Page 24