U.K. TMC Transactions Soar In Second Quarter - Business Travel News

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U.K. TMC Transactions Soar In Second Quarter

September 15, 2010 - 12:50 PM ET

By Amon Cohen

Business travel transactions through travel management companies in the United Kingdom shot up 12 percent in the second quarter of 2010, according to figures released on Tuesday by the Guild of Travel Management Companies.

Despite the ash crisis and a lengthy strike by British Airways cabin crew, air bookings jumped 13 percent. GTMC members handle 6 million air bookings and 5 million other transactions annually in the United Kingdom, which the organization claims accounts for 80 percent of the country's business travel spend.

Hotel bookings rose a rather more modest 7 percent, implying that that British TMCs continue to lose hotel business to hotel booking agencies and unmanaged booking channels. All other categories were up by double-digit percentages, with rail transactions up 16 percent, although GTMC said that average ticket prices for rail are down.

"The growth in transactions has not been matched by a growth in revenues, with a general move out of first class and a noticeable reduction in public sector spend," it said in a statement.

Also up by 11 percent were car rental bookings, following two years of sharp decline until the category stabilized with a 1 percent rise in the first quarter of 2010. GTMC attributed the reversal in fortune to the ash crisis.

GTMC transactions increased in all categories in the first quarter but in each case the rate of growth accelerated considerably in the second quarter.

"The survey of transactions by GTMC members shows clearly that the recovery, no matter how fragile, is under way for UK Plc," said chief executive Anne Godfrey. "The results are particularly encouraging when you factor in the truly exceptional items of the ash crisis and industrial action." 

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