2. Market size
● Revenue increased by an average of 4.8%
from 2004-2008
● Dropped 16% the following year
● What is $138.3b x .246?
● $34.25 Billion dollars spent by business in
2013(IBISWorld)
3. Product Life Cycle
State of Decline:
● Product saturation
● Increasing
Consolidation
● limited
technological
innovation
Poor Performance:
● Soaring crude oil
prices
● Bad Economy
4. Future Outlook
Projected growth through 2017
● Economy is slowly recovering which drives
business activity
● Technological advances on the way
5. Market Share - United
Domestic Market Share - 15.7%
Business Market Share - 13.49%
10. 3 Micro Segments
● Entrepreneur Travelers
● Small Business Travelers
● Corporate Travelers
11. Entrepreneur Travelers
● Have start-ups
● PRIZM: Up & Comers
● Risk takers, self starters
● Age:18-34
● Income: $50,863
● No children & own homes
● College Educated
14. Small Business Travelers
● Small business = <500 employees?
● PRIZM: Upward Bound
● Come from traditional households
● Average age 50
● Income: $71,690
● Have children & own homes
● College Educated
17. Corporate Business Travelers
● Corporation = Legally declared a separate entity from its
owners (Incorporated)
● PRIZM: Kids & Cul-de-sacs
● Average Age: 34.5 years old
● Average Income: $70, 298 per year
● Have children and own homes
● College Educated
● High Percentage of Hispanic and Asian Americans
20. Recommend Corporate Travelers
● Stabilizing Economy means increased need for
business traveling
● Companies are trying to save money on Travel
Expenses
● Corporations must travel often regardless of economy
21. The Corporate Business Traveler
● GBA Survey
● 78% prefer meeting in person
● 46% travel on a budget
● Benefits Southwest
22. The Corporate Business Traveler
● Five Different Types of Travelers
○ Veteran
○ Road Weary
○ Wide- eyed and Anxious
○ Passionate High-Tech
○ New Recruit
23. Travelers by Generational Cohort
● Baby Boomers
○ Largest Demographic
○ 40% Business Travel
○ Uses Loyalty Programs
○ The Veteran Traveler
○ Amenities and Lounges
24. Travelers by Generational Cohort
● Generation X
○ 1965-1976
○ Not considered Workaholics
○ Tech Savvy
○ Road Weary Traveler
○ Amenities and Lounges
25. Travelers by Generational Cohort
● Generation Y
○ 1977-1994
○ The Passionate High Tech Traveler
○ Amenities and Lounges