INNOVATION REPORT 2015
This would be the highest for three years following wild fluctuations in 2011 (-13%) and 2012 (+11%). The travel agent and tour operator
sectors are both forecast to grow their technology spending by 5% in 2015, which will be a lower level than seen in 2014 (8% and 6% respectively). Comparing the travel industry’s
technology spend to the overall figure for UK plc, the sector represents just 1.14% of technology spend in the UK. In 2014, UK businesses spent a
grand total of £105 billion on technology. According to our analysis, the travel industry’s proportion of technology spend has remained fairly static over the past five years, fluctuating around a mean of 1.13%.
TRAVOLUTION’S TAKE
Businesses thrive on confidence so it’s great to see this being borne out in the top-line findings in this year’s InnovationReport. The cautious approach to
technology investment for the year ahead found in this year’s figures maybe reflects the unknowns in the coming year. The UK general election is
bound to cause some uncertainty, especially with the result seemingly impossibly to call, and we’ve heard warnings of another general economic slowdown. Unsurprisingly, aviation leads
the way in terms of its investment in technology, but it’s good to see travel agents up there in second position. A sector that does not own the product and has to battle hard to win over the customer must do what it can to give it an edge, and investing in new technology is a proven way of doing that.
£ billion
PASSENGER WATER TRANSPORT (PWT) PASSENGER AIR TRANSPORT (PAT) HOTELS (H) TRAVEL AGENTS (TA) TOUROPERATORS (TO)
100 120
20 — FEBRUARY 2015 —
TRAVOLUTION.CO.UK
20 40 60 80
0
Travel Industry 2010-2014 compared to Total IT Spend – All UK Industries 2010-2015
Chart showing Total IT Spend
BIGGEST SPEND INCREASE
OPERATORS (£8.9 million)
8%TOUR 1.5%
0.5% 1%
0%
UK TRAVELTRADE vALL UK BUSINESS 2010-15
All UK industry
0% 1% 2% 3% 4% 5% 6% 7% 8%
UK travel industry
ANNUAL INCREASE IN TECHNOLOGY SPENDING:
SPENDING ON TR TOTAL UK
IT SPEND:
UKINDUSTRIES £
£105bn 1.19bn
ALL INDUSTRY TRAVEL UK
2011 2012 2013 2014 2015* * forecast
Total IT Spend - 2014 Travel Industry
Total IT Spend/employee - 2014 Travel Industry
PROPORTIONOF IT SPEND OF TRAVEL INDUSTRY SECTORS By total spending
By spending per employee
Tou Trav Hot Pass Pass
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