Business travel sector hit hard, warns report
A LEADING INDUSTRY ANALYST has warned that the coming year could see business travel job losses and company failures unless there is "a big upturn" in travel demand. David Pattison, senior analyst with market research company Plimsoll, says the recession has cost the UK business travel industry the equivalent of £137 million in lost profit over the past year.
"With demand so subdued, many companies are unable to charge the price they need to make healthy profit margins. In the absence of pricing power, many companies will have to make painful, but necessary, cutbacks in the next 12 months. "In the absence of a big upturn in demand, they will have to cut their cloth accordingly.
Watch out for further job losses and closures as these companies look to claw themselves back to profit next year." Pattison's dire warnings accompany the publication of his new report, Plimsoll Analysis - Business Travel, based on research into 115 companies, more than 60 of which have seen profits "decimated".
"The recession has hit the sector hard, with more than half of the companies analysed in our new report making less profit than they were a year before," he says. "The bill in lost profits stands at £137 million." Only 30 of the research sample managed to maintain or increase profit levels.
- Plimsoll is offering Buying Business Travel readers a £50 discount on the £350 report. Prospective purchasers should call 01642 626400, quoting reference PR/HP81.