INNOVATION REPORT 2015
TECHNOLOGY SPENDING BY IT CATEGORY
YOUR GUIDE TO HOW MUCH THE INDUSTRY INVESTS IN HARDWARE, SOFTWARE, IT STAFF, TELECOM SERVICES AND COMPUTER SERVICES
T
he travel sector spends more on servicing existing technology than investing in new systems,
according to our analysis of IT spend. Spend on computer services still
accounts for a third of the overall annual technology outlay in the travel sector, our research has found (chart, this page). This category of spend includes
consultancy, training, outsourcing, contract staff, and software and hardware support. In 2014 the industry spent £380million on computer services, a figure set to rise above £400 million in 2015 – a 6% increase. However, the biggest rate of growth
of spend in 2015 is forecast to be for hardware, the technology category that accounts for the smallest expenditure of the five studied for this research. Hardware spending is tipped to rise by 11% in 2015, following a 17% hike in 2014. Travel’s increasing hardware spend is somewhat skewed by the hotel sector in which a 20% increase is predicted for 2015. Other sectors show
more modest increases: travel agents (11.6%), tour operators (7.5%), passenger air transport (0.3%) and passenger water transport (15.2%). The second-biggest area of spend
was telecom services, reflecting the continued reliance by travel firms on doing business over the phone. This is particularly marked in the air transport, travel agency and hotel sectors. The data show these three travel industry sectors are consistently the biggest spenders in each of the five technology categories with the exception of staff spend. Travel’s heaviest technology
SHAREOF ALL TECHNOLOGY SPEND BY IT CATEGORY, 2014
Total IT Spend - 2014 Travel Industry
Hardware
IT & Telecom Staff
investor, the air transport sector, leads the pack for software, telecom services and staff spending. Software spend in travel is relatively
subdued in relation to UK industries as a whole. The two biggest-spending travel sectors, travel agents and passenger air transport, are set to increase software spend by 2.8% and 1.1% respectively this year, well short of the 10% forecast for all UK industries. The comparison with technology
category spend across all UK enterprises throws up some interesting variances with the travel sector. Proportionately, UK firms in general spend less on telecom services than travel firms and that trend is being compounded by year-on-year falls (-2% in 2014 and projected -2% in 2015). This is the only UK-wide technology
Software
Telecom Services
Computer Services
category spend that is contracting, while software spend in the wider business community is the fastest- growing (12% in 2014, 10% forecast in 2015). Telecom and IT staff costs is the biggest area of spend among all UK businesses, with £34.4 billion spent in 2014, set to rise to £36.6 billion in 2015.
22 — FEBRUARY 2015 —
TRAVOLUTION.CO.UK
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