Press Releases: FCm RELEASES SPAIN'S FIRST BUSINESS TRAVEL RESEARCH REPORT

SPANISH companies looking to generate more value from their spend on travel and improve bottom line savings continue to use the cost reduction strategies they adopted during the Global Financial Crisis, according to a new research report from FCm Travel Solutions.

The global corporate travel and expense management specialist has compiled Spain's first in-depth report into the local business travel market. The report was created in collaboration with Spanish management consultancy firm Brain Trust Consulting Services.

Called The Business Travel Research Report, the document includes data and analysis of the travel purchasing behaviour and travel management trends of 200 Spanish businesses during 2010. Companies were also asked what their intentions were for their business travel budgets and volumes during the next 12 months.

Report author and managing director of FCm Travel Solutions Spain, Jose Maria Canovas del Castillo said the report's key findings indicated that during 2010 the majority of companies continued to use cost reduction strategies introduced during the downturn – many of which, businesses say, will remain in place for the long-term.

Some of the key findings of FCm's business travel report include:

• Cost reduction strategies introduced during the GFC that are expected to remain for a while include contracting with the one travel agency, industry benchmarking, consolidation and advance bookings.
• During 2010 there was increased use of restrictive airfares and increased application of travel policies around advance purchase of air tickets. Data shows the use of discount fares for air travel to Europe rose to 90% during 2010.
• Spanish companies stepping up efforts to increase their international market share to overcome the country's sluggish economy. FCm research revealed that while domestic travel in Spain fell by 10% in 2010, traffic to the Americas grew by 8% and 16% to Asia.
• Over 50% of firms in Spain reduced their travel spend in 2010.

The report also shows that during 2010:

• 68% of companies used advance purchase to leverage early booking discounts
• 56% of companies reduced the number of trips
• 56% of companies sought other alternatives to travel
• 49% of companies introduced changes to their business travel policies
• The key criteria businesses used to select a travel management company included credibility, price, service and technology.
• Increased focus on return on investment (ROI) to ensure business travel outcomes were providing value for money. 12% of travel managers now measure ROI.

Jose said the data also showed there were some positive trends emerging for Spain including results showing that during 2011, 33% of companies plan to increase their spend on business travel.

"Data from our study leads us to believe Spain's estimated €3,500 million business travel market could achieve growth rates of around 3% this year," Jose said. "Many businesses are looking to boost their travel activity during 2011 through smarter buying and the continued use of restrictive and discount fares.

Jose said the aim of FCm's report was to provide reliable, frequent and local research for clients, industry, trade and the media.

"Up until now we have seen many international reports with a global focus on business travel patterns leaving a huge gap in the market here when it comes to local data and information. FCm Spain's research report will be published quarterly, covering both qualitative and quantitative aspects of the Spanish business travel market," he said.

"Business travel is a major controllable expense for companies and therefore an area where companies, with the help of a specialist consultant, need to be constantly looking for ways to streamline and leverage efficiencies."

Report fast facts

• Depth of study: 200 companies (including FCm clients and non clients)
• Field: research includes Spanish companies only
• Methodology: telephone and face-to-face interviews.
• Field: business travel management.
• Market breakdown of companies involved in study: large market companies 26%, medium 37%, small to medium (SME) 37%.
• Sector: 46% of companies worked in the service sector, industry 39%, trade 10%, construction 5%.
• Fieldwork: interviews conducted between 20 Dec 10 - 20 Jan 11.