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GLOSSARY


ABOUT THE REPORT DATA This is the eighth Travolution Innovation Report analysing technology spend in the UK travel industry. The analysis has been produced by Kew Associates for Travolution.


METHODOLOGY Historical data: Historical IT and telecom expenditure is based on a series of government surveys (see below). Any adjustments to cover gaps in the government data are reconciled with various sanity checks, such as spend per HPSOR\HH DQG VSHQG DV D SHUFHQWDJH RI WXUQRYHU 7KH QDO KLVWRULFDO DQDO\VLV SURYLGHV D PDWUL[ FRYHULQJ YH LQGXVWU\ VHFWRUV ZLWK YH VSHQG FDWHJRULHV DFURVV YH HPSOR\HH EDQGV ,W DOVR UHHFWV WKH GHPRJUDSKLF VWUXFWXUH RI HDFK RI WKH YH travel industry sectors as provided by the Inter-Departmental Business Register (IDBR).


Spend forecast: Our projection of expenditure in 2020 is calculated using the following processes:


DEFINITIONS


Hardware: Computers and peripherals. Software: Custom software, application packages,


development tools and system software. Computer services: Consultancy, training, outsourcing,


contract staff, software support and hardware support. Telecom services: Rental charges on telephone services including mobile phone services and the cost of telephone


calls, faxes, internet services and data transmission. IT and telecom staff: *URVV SD\ LQFOXGLQJ EHQHWV


DATA SOURCES


The historical technology expenditure is based on a series of government surveys. These collect data by industry and size of enterprise. The industry data is disaggregated to cover the YH WUDYHO VXEVHFWRUV 7KHUH DUH IRXU PDMRU 8. JRYHUQPHQW sources used, each providing size of enterprise data for each


subsector on a quarterly/annual basis. 1. Quarterly Survey of Capital Expenditure


This survey collects expenditure data on hardware and software. It has a sample size of 27,000 per quarter, requesting information from private enterprises.


2. Annual Business Survey


This survey is the key resource for understanding the detailed structure and performance of enterprises across the 8. 3DUW RI WKH GDWD JDWKHUHG LV VSHQG RQ VRIWZDUH FRPSXWHU services and telecom services. The sample size is 73,000. 3. Annual Population Survey: This survey is a continuous


1. Historical spend data is used in conjunction with growth in the number of employees to forecast future expenditure. -XVWLFDWLRQ IRU WKLV DSSURDFK LV EDVHG RQ WKH VWURQJ relationship found between total IT spend and all employment.


2. Employment forecasts for each sector are based on historical trends and on how each sector’s data relates to the whole economy. The historical and the resulting projected employment numbers for each sector are used with the corresponding historical overall IT and telecom services spend to forecast each sector’s future outlay.


3. The historical and projected total IT and telecom services VSHQG IRU HDFK RI WKH YH WUDYHO VHFWRUV LV GLVDJJUHJDWHG WR SURGXFH D QDO PDWUL[ 3URMHFWLRQV DUH PDGH E\ XVLQJ WKH disaggregated historical data and forecasting each data series using Excel’s forecast function, ensuring the overall spend totals are matched. Finally, sanity checks are made using spend-per-employee and spend as a share of turnover.


Enterprise: ,V D EXVLQHVV XQLW WKDW LV GHQHG DV D OHJDO XQLW person or group of people producing goods or services under their own control and with their own legal identity. A branch


RU RIFH RI D ODUJHU FRQFHUQ LV QRW LQ LWVHOI DQ HQWHUSULVH Rounding: The number of enterprises is rounded to the QHDUHVW YH :KHUH WKH QXPEHU RI HQWHUSULVHV LV URXQGHG to zero, the associated IT expenditure values are included in the nearest adjacent employee band with non-zero HQWHUSULVH HQWU\ 7KLV LV WR HQVXUH FRQGHQWLDOLW\ WR VXUYH\ respondents.


household survey providing social and labour market variables. It also uses data from the Labour Force Survey. Data collected includes occupation and pay, thereby enabling IT and telecom staff costs to be determined. The sample size is 320,000 respondents a year.


4. Inter-Departmental Business Register (IDBR)


7KLV UHJLVWHU LV D FRPSUHKHQVLYH OLVW RI 8. EXVLQHVVHV WKDW provides the main sampling frame for surveys of businesses carried out by government departments. It is also a key data source for analyses of business activity. The IDBR covers PLOOLRQ HQWHUSULVHV LQ DOO VHFWRUV RI WKH 8. HFRQRP\ ,W LV


XVHG WR SURYLGH WKH GHPRJUDSKLF VWUXFWXUH RI WKH YH WUDYHO industry subsectors. This includes number of enterprises, employment and turnover.


In addition, other government sources are used for passenger numbers and economic forecasts. The latter is sourced from WKH 2IFH IRU %XGJHW 5HVSRQVLELOLW\


42 — FEBRUARY 2020 — TRAVOLUTION.CO.UK


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