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Travel and Tourism Industry Business Confidence Report H1 2018

Travel and Tourism Industry Business Confidence Report H1 2018

Summary

GlobalData’s Travel and Tourism Industry Business Confidence Report H1 2018, examines executives’ opinion about the business environment during H1 2018. It also highlights existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities. Additionally, the report provides information categorized by region.

The existing economic environment is stable for the travel and tourism industry during H1 2018 (February 2018-July 2018). Globally, 41% of respondents indicate a stable economic state in H1 2018, while 31% highlight that the prevailing economic conditions as favorable for the travel and tourism industry. Increase in spending from the corporate travel sector, and spending on recreation and travel, rising disposable income, and rise in consumer spending activities. In H1 2018, executives expect supplier prices of technology to surge at an average of 3.5% and also foresee a rise in expenditure on new product development and marketing and advertising activities. Additionally, political changes and rising tax burden remain important concerns for the respondents with business operation in North America.

What else does this report offer?

  • Current state of the global economy: examines prevailing economic conditions globally and across various regions
  • Company and industry growth outlook: provides industry executives’ expectations towards the growth prospects of their company and the industry over the next six months
  • Change in customer confidence: analyzes travel and tourism industry executives’ opinion about the change in customer confidence during H1 2018
  • Supplier prices projection: determines expected change in supplier prices across various categories and their impact on business confidence
  • Change in staff headcount and sales performance: tracks expected change in staff headcount and sales for H1 2018 among industry executives globally as well as regionally
  • Significant investment activities: highlights various areas in which industry executives intend to invest over the next six months
  • Business concerns: provides information about potential business concerns indicated by survey respondents for H1 2018
  • Key priorities: identifies the top priorities of industry executives operating in various regions
Scope
  • In total, 41% of survey respondents state that the current economic environment is stable, whereas 31% of respondents indicate a favorable economic climate
  • Overall, 13% of respondents who operate in Africa have favorable or very favorable opinions about the region during H1 2018
  • The positive outlook towards company growth over the next six months is highest among executives with business operations in North America and Asia Pacific
  • 64% of respondents with business operations in Asia-Pacific anticipate a significant increase in consumer confidence during the next six months as compared to previous six month
  • Globally, 32% of travel and tourism industry executives expect an increase of 2% to 5.99% in the supplier prices of equipment during the next six months
Reasons to buy
  • Helps organizations to make effective business strategy decisions by knowing the prevailing business conditions and sentiment within the travel and tourism industry
  • Organizations will be supported in business expansion decisions by providing information about projected change in sales performance and supplier prices
  • Helps to improve operational efficiency of the organization by knowing about key priorities and the main concerns of travel and tourism industry executives
  • Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H1 2018


  • Introduction
    • Definitions and abbreviations
    • Methodology and sample size
    • Respondent profile
  • Economic state, growth prospects, and consumer confidence
    • State of the economy: key take outs
    • A significant number of respondents highlight the current global economic conditions as stable
    • In total, 49% of travel and tourism industry executives indicate favorable or very favorable economic conditions in Asia
    • Respondents who operate in Asia-Pacific have a more favorable opinion about their region
    • State of the economy: in their words
    • Growth prospects and consumer confidence: key take outs
    • The majority of respondents expect an optimistic outlook for company and industry growth prospects in H1 2018
    • Two-thirds of industry executives are optimistic or very optimistic about industry and company growth during the next six months
    • The positive outlook towards company and industry growth is higher among respondents with business operations in North America
    • Executives who operate in North America have projected more company growth during H1 2018
    • In total, 57% of executives project positive or very positive change in consumer confidence over the next six months
    • Overall, 56% of respondents with business operations in North America anticipate a positive change in consumer confidence during the next six months
    • Supplier prices and consumer confidence: in their words
  • Supplier prices, staff headcount, and sales performance
    • Supplier price and expenditure: key take outs
    • Travel and tourism industry executives project a significant increase in supplier prices for technology during H1 2018
    • Over two-fifths of respondents felt the supplier prices of equipment in North America would remain constant during the next six months
    • Overall, 37% of executives project an increase of 0.1% to 5.99% in technology prices over the next six months
    • On average, supplier prices of power and energy are anticipated to increase by 3.3% during the next six months
    • Executives with business operations in Asia-Pacific anticipate the highest increase in staff headcount in H1 2018
    • Executives foresee an increase in expenditure on marketing and advertising over the next six months
      • Table Executives foresee an increase in expenditure on marketing and advertising over the next six months
  • Business concerns and organizational priorities
    • Priorities and concerns: key take outs
    • Economic, industrial, and societal issues can impact operations, increase cost concerns, and force the restructuring of business strategies
    • Health Epidemics and Cost Concern are the biggest concerns for industry executives operating in the Asia-Pacific region
    • Overall, 32% of global travel and tourism industry executives are concerned about the performance of the Eurozone during H1 2018
      • Table Overall, 32% of global travel and tourism industry executives are concerned about the performance of the Eurozone during H1 2018
    • Over two-fifths of respondents indicated skill shortages and cost concern will pose challenges for travel and tourism organizations over the next six months
      • Table Over two-fifths of respondents indicated skill shortages and cost concern will pose challenges for travel and tourism organizations over the next six months
    • Globally, political changes in country/countries of operation and exchange rate volatility will pose challenges for the tourism industry during H1 2018
      • Table Globally, political changes in country/countries of operation and exchange rate volatility will pose challenges for the tourism industry during H1 2018
    • Customer Retention is a top priority for executives operating in North America
    • In total, 72% of respondents operating in Europe anticipate improving operational efficiency as one of the top priorities over the next six months
    • Globally, organizations intend to focus more on customer retention and improving operational efficiency during the next six months
      • Table Globally, organizations intend to focus more on customer retention and improving operational efficiency during the next six months

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