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Travel and Tourism Industry Business Outlook and Procurement Survey Dec 2017 - May 2018

Travel and Tourism Industry Business Outlook and Procurement Survey Dec 2017 - May 2018

Summary

GlobalData’s Travel and Tourism Industry Business Outlook and Procurement Survey Dec 2017 - May 2018, examines executives’ opinion on the business outlook and procurement activities over Dec 2017-May 2018, including comparative analysis of survey results with Jun-Nov 2017 (wherever applicable). It also highlights key business priorities, supplier price variations, changes in capital expenditure, and organizations’ perspective on e-procurement. In addition, this report presents the future projection of merger and acquisition activities within the travel and tourism industry over the next six months.

In comparison to the previous six months (June-Nov 2017), mergers and acquisition activity in the global travel and tourism industry is projected to increase by five percentage points over the next six months (Dec 2017-May 2018), as a result of increasing competition, economies of scale, and government policies. Even though rising competition and market uncertainty have been highlighted as major business concerns for the global travel and tourism industry over the next six months, respondents are willing to increase their focus towards improving their operational efficiency and expansion in current markets. Furthermore, emerging economies such as China, India, and Brazil are projected to offer significant growth opportunities for the global travel and tourism industry, due to rising disposable income, favorable demographic factors, the availability of cheaper flights, and favorable government policies. On average, the global travel and tourism industry’s procurement expenditure is projected to increase by 7.2% over the next six months.

What else does this report offer?

  • Key business priorities: examines travel and tourism organizations’ important priorities for Dec 2017-May 2018
  • Emerging and developed markets: provides information about key emerging and developed markets, which will offer the most growth over Dec 2017-May 2018
  • 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 manufacturers and suppliers
  • Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally
  • Change in procurement activities: evaluates how procurement activities will change in the travel and tourism industry over the next six months
  • Procurement budget outlook: projects procurement budget allocation along with changes in procurement objectives over Dec 2017-May 2018
  • Supplier prices outlook: determines the expected change in supplier prices over Dec 2017-May 2018
  • E-procurement: identifies executives’ perspective towards e-procurement implementation and deployment within the global travel and tourism industry.
Scope
  • Improving operational efficiency is projected to be a key priority for the global travel and tourism industry over the next six months (Dec 2017-May 2018)
  • Executives expect China to offer more growth in the six months of Dec 2017-May 2018
  • Increased use of technology and internal operating cost reductions are the main procurement objectives for global travel and tourism organizations over the next six months
  • Overall, 36% of executives anticipate their global procurement budget to be up to US$100,000 over the next six months
  • Of industry executives, 23% state that the deployment of e-procurement within their organization is limited.
Reasons to buy
  • Travel and tourism companies can realign business strategies by comparing the business priorities over the next six months (Dec 2017-May 2018) compared to the previous six months (Jun-Nov 2017)
  • Organizations can develop or adjust business expansion plans by knowing the significant growth offering emerging and developed markets highlighted in the report
  • Helps organizations to adjust their procurement budget by providing information about procurement budget projections anticipated by executives for Dec 2017-May 2018
  • Organizations can implement effective price management by viewing supplier price variations highlighted for Dec 2017-May 2018.


  • Introduction
    • Definitions
    • Methodology and Sample Size
    • Respondent Profile
  • Global Business Outlook in December 2017–May 2018
    • GLOBAL BUSINESS OUTLOOK: KEY TAKEOUTS
    • Improving operational efficiency is projected to be a key priority over the next six months for the global travel and tourism industry
    • The highest percentage of executives who operate in North America and Asia-Pacific consider improving operational efficiency as a top priority for the next six months
    • Executives expect China to offer more growth in the six months Dec 2017–May 2018
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months? (Comparison between the previous six months and the next six months)
    • Of respondents, 63% and 54% with business operations in the Rest of the World and Europe anticipate China to offer significant growth during the next six months
    • The majority of respondents expect the US to offer significant growth prospects for the travel and tourism industry over the next six months
      • Table Which developed markets are expected to offer significant growth opportunities for your industry over the next six months? (Overall)
    • Over the next six months, 73% of respondents from North America and 49% from Europe expect the US to offer significant growth
    • Survey results state a five percentage point increase in merger and acquisitions activity over the next six months compared to the previous six months
    • Of respondents who operate in Asia-Pacific, 75% foresee either a significant increase or increase in mergers and acquisitions activity in the coming six months
    • Market uncertainty and rising competition are projected to be the major concerns for travel and tourism industry over the next six months
    • Over the next six months, 60% and 54% of executives operating in North America and Europe indicate market uncertainty will become the key concern
    • Capital expenditure on IT infrastructure development is projected to increase over the next six months
    • Regardless of the region, IT infrastructure development is projected to witness the highest increase in capital expenditure over the next six months
  • Procurement Behaviors and Strategies
    • PROCUREMENT ACTIVITIES OUTLOOK: KEY TAKEOUTS
    • Globally, the majority of respondents anticipate increased use of technology over the next six months
      • Table In what ways do you expect your procurement resources and objectives to change over the next six months? (Overall)
    • Of respondents who operate in Asia-Pacific, 67% anticipate to improve sustainability and environmental performance over the next six months
    • Globally, 45% of executives anticipate procurement of IT services to increase somewhat over the next six months
    • Irrespective of the region, the maximum number of respondents expect an increase in IT services purchases during the next six months
    • Overall, 36% of executives anticipate their global procurement budget to be up to US$100,000 over the next six months
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of overall and regional responses)
    • Procurement expenditure for organizations is expected to increase by an average of 7.2% over the next six months
      • Table How do you expect your organization's procurement expenditure to change over the next six months? (Analysis of overall and regional responses)
    • Compared to the previous six months, there has been a 10 percentage point increase in supplier prices
    • Overall, 58% of respondents who operate in Asia-Pacific foresee a somewhat increase in supplier prices in the coming six months
    • Of industry executives, 23% state that there is a limited deployment of eprocurement within their organization
    • In total, 36% of executives who operate in the Rest of the World indicate an intention to implement e-procurement within their organizations

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