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Travel and Tourism Industry Business Outlook and Procurement Survey H1 2017

Travel and Tourism Industry Business Outlook and Procurement Survey H1 2017

Summary

GlobalData’s Travel and Tourism Industry Business Outlook and Procurement Survey H1 2017, report examines executives’ opinion on the business outlook and procurement activities over June-November 2017. Organizations can know about key business priorities, supplier price variations, changes in procurement expenditure, and supplier prices with the implementation status of e-procurement within the travel and tourism industry. Additionally, it provides information categorized by region and company type.

Amid growing market uncertainty, and rising competition, organizations within the travel and tourism industry are planning to increase focus on improving operational efficiency and sustainability initiatives, expansion in the current market, and new product development. Mergers and acquisitions are expected to increase within the travel and tourism industry over the next six months. Emerging markets such as China, India, and Russia are forecast to offer prominent growth opportunities for the travel and tourism industry. Moreover, organizations intend to increase their use of technology, and concentrate on internal operating cost reductions in H1 2017; procurement activities will increase on IT services and MRO activities. Consequently, procurement expenditure for travel and tourism organizations is projected to increase by an average of 5% over the next six months. Additionally, 51% of travel and tourism industry executives expect supplier prices to increase in the next six months.

What else does this report offer?

  • Key business priorities: examines travel and tourism companies’ important priorities for H1 (June-November) 2017
  • Emerging and developed markets: provides information about key emerging and developed markets, which will offer the most growth over H1 2017
  • Change in M&A activity: analyzes travel and tourism industry executives’ opinion on changes in merger and acquisition activity globally
  • Business concerns: identifies major business concerns that are likely to impact travel and tourism companies
  • Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally across key areas
  • Budget allocation: examining procurement budget expectations for travel and tourism organizations over the next six months
  • Supplier price outlook: determine the expected change in supplier prices over June-November 2017
  • E-procurement: identify executives’ perspective towards e-procurement within the travel and tourism industry.
Scope
  • The majority of executives highlight improving operational efficiency and expansion in current market as key priorities for June 2017-November 2017
  • Executives who operate in Europe view Germany as the more significant potential developed market, compared to those operating in North America
  • Overall, 30% of respondents from large companies foresee no change in mergers and acquisitions activity in the coming six months
  • Organizations within the travel and tourism industry expect to increase their use of technology and focus on internal operating cost reductions in next six months
  • Large companies indicate more focus towards procurement of capital equipment in the next six months, compared to small and medium-sized companies
  • Over one-quarter of executives who operate in the Rest of the World indicated limited deployment of e-procurement within their organizations.
Reasons to buy
  • Highlights key business priorities thus helping travel and tourism companies to realign business strategy
  • Develop or adjust business expansion plans by knowing about significant growth-offering emerging and developed markets
  • Make changes in procurement budget allocations by analyzing procurement expenditure projections anticipated by executives for June-November 2017
  • Helps to manage costs by providing information about supplier price expectations for the next six months.


  • Introduction
    • Definitions
    • Methodology and Sample Size
    • Respondent Profile
  • Global Business Outlook in June 2017-November 2017
    • GLOBAL BUSINESS OUTLOOK: KEY TAKEOUTS
    • The majority of executives highlight improving operational efficiency and expansion in current market as key priorities for June 2017-November 2017
    • Of respondents operating in North America, 60% indicate expansion in current market as the top priority for the next six months
    • Of respondents from medium-sized companies, 55% expect organizations to focus on improving operational efficiency over the next six months
    • China, India, and Russia expect to offer the most growth prospects for the travel and tourism industry over the next six months
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months?
    • In overall regions, China is indicated as the most prominent growth offering emerging market for June 2017-November 2017
    • The majority of respondents from large companies state that Saudi Arabia is anticipated to be the most prominent emerging market for the next six months
    • The highest percentage of respondents expect the US to provide significant growth opportunities during June 2017-November 2017
      • Table Which developed markets are expected to offer significant growth opportunities for your industry over the next six months?
    • Executives who operate in Europe view Germany as the more significant potential developed market, compared to those operating in North America
    • Of executives from medium-sized companies, 82% anticipate the US to offer sizeable growth prospects over the next six months
    • Overall, 50% of executives expect a significant increase or increase in mergers and acquisitions during June 2017-November 2017
    • The highest number of respondents who operate in North America foresee an increase in merger and acquisitions in the coming six months
    • Overall, 30% of respondents from large companies foresee no change in mergers and acquisitions activity in the coming six months
    • OPINION ON MERGER AND ACQUISITION ACTIVITY: IN THEIR WORDS
    • Rising competition is the major challenge for organizations within the travel and tourism industry during June 2017-November 2017
    • Executives operating in the Rest of the World identify cost containment as a bigger concern for the next six months, compared to those who operate in Europe
    • Overall, 60% of respondents from large companies indicate responding to pricing pressure as the most pressing concern for June 2017-November 2017
    • Capital expenditure on IT infrastructure development is projected to increase in the coming six months
    • Respondents operating in North America and Europe project less increase in capital expenditure on mergers and acquisitions
    • The majority of executives from large companies expect increases in capital expenditure on IT infrastructure development in the next six months
  • Procurement Behaviors and Strategies
    • PROCUREMENT ACTIVITIES OUTLOOK: KEY TAKEOUTS
    • Organizations with in the travel and tourism industry expect to increase their use of technology and focus on internal operating cost reductions in next six months
      • Table In what ways do you expect your procurement resources and objectives to change over the next six months?
    • The majority of executives operating in Europe expect organizations to increase use of technology during the next six months
    • Small companies are more focused on internal operating cost reductions, compared to medium-sized and large companies, in June 2017-November 2017
    • Procurement activities on IT services are projected to increase over the next six months
    • The majority of executives from all regions except Asia-Pacific project a surge in the procurement of IT services during June 2017-November 2017
    • Large companies indicate more focus on the procurement of capital equipment in the next six months, compared to small and medium-sized companies
    • In total, 36% of respondents expect the global procurement budget to remain less than US$250,000 during June 2017-November 2017
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of overall and regional responses)
    • Over one-quarter of executives from large companies foresee the procurement budget to be less than US$100 million over the next six months
    • Procurement expenditure for organizations within the travel and tourism industry is projected to increase by an average of 5% in June 2017-November 2017
      • Table How do you expect your organization's procurement expenditure to change over the next six months? (Analysis of overall and regional responses)
    • Of executives from medium-sized companies, 27% anticipate no change in procurement expenditure during the next six months
    • The highest percentage of executives anticipate a marginal increase in supplier prices from June 2017-November 2017
    • Overall, 30% of executives with business operations in Europe anticipate no change in supplier prices during the next six months
    • A surge in supplier prices during June 2017-November 2017 is projected more by medium-sized companies than by small and large companies
    • Overall, 18% of respondents highlight limited or generalized deployment of eprocurement within their organizations in June 2017-November 2017
    • Over one-quarter of executives who operate in the Rest of the World indicated limited deployment of e-procurement within their organizations
    • Of small companies, 21% of industry executives expressed intention to implement e-procurement within their organizations

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