Amid growing market uncertainty, increasing costs, and rising competition, organizations within the travel and tourism industry are planning to increase focus on improving operational efficiency and sustainability initiatives, and expansion in the current market. Mergers and acquisitions are expected to increase within the travel and tourism industry with emerging markets such as China, India, and Russia offering prominent growth opportunities. As organizations intend to increase their use of technology, and concentrate on internal operating cost reductions in H1 2016, 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 5.9% over the next six months. Additionally, 58% of travel and tourism industry executives expect supplier prices to increase in the next six months and over one-fifth of travel and tourism industry executives highlighted limited or generalized deployment of e-procurement within their organizations.
-The majority of travel and tourism executives highlight improving operational efficiency and expansion in current market as key priorities for H1 2016
-The highest percentage of respondents expect the UK to provide significant growth opportunities during the next six months
-Globally, the highest percentage of executives expect an increase in merger and acquisition activity in H1 2016
-The majority of executives across small and medium-sized companies expect more capital expenditure on IT infrastructure development in the next six months
-In total, 32% of respondents expect the global procurement budget to remain within the US$250,000 range during H1 2016
-Overall, 22% of respondents indicated limited or generalized deployment of e-procurement within their organizations
Canadean's Travel and Tourism Industry Business Outlook and Procurement Report H1 2016 examines executives' opinion on the business outlook and procurement activities over April-September 2016. 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.
What else does this report offer?
-Key business priorities: examines travel and tourism companies' important priorities for H1 (April-September) 2016
-Emerging and developed markets: provides information about key emerging and developed markets, which will offer the most growth over H1 2016
-Change in MandA 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 April-September 2016
-E-procurement: identify executives' perspective towards e-procurement within the travel and tourism industry
-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 April-September 2016
-Helps to manage costs by providing information about supplier price expectations for the next six months