GLOSSARY


ABOUT THE REPORT DATA


This is the 11th 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 employee, spend per passenger ËİíǝšŘóİíǝËšǝËǝŘóśçóİŨËĉóǝĺĈǝŨŭśİĺƂóśƿǝTďóǝƛİËĨǝďĒšŨĺśĒçËĨǝ ËİËĨƉšĒšǝŘśĺƂĒíóšǝËǝįËŨśĒƈǝçĺƂóśĒİĉǝƛƂóǝĒİíŭšŨśƉǝšóçŨĺśšǝƃĒŨďǝƛƂóǝ šŘóİíǝçËŨóĉĺśĒóšǝËçśĺššǝƛƂóǝóįŘĨĺƉóóǝæËİíšƿǝGŨǝËĨšĺǝśóƜóçŨšǝŨďóǝ íóįĺĉśËŘďĒçǝšŨśŭçŨŭśóǝĺĈǝóËçďǝĺĈǝŨďóǝƛƂóǝĒİíŭšŨśƉǝšóçŨĺśšǝËšǝ provided by the Inter-Departmental Business Register (IDBR).


Spend forecast:Our projection of expenditure in 2023 is calculated using the following processes:


DEFINITIONS


Hardware: Computers, peripherals and telecommunication equipment. Software: Custom software, application packages, development tools and system software. Computer services: Consultancy, training, outsourcing, contract šŨËƖƺǝšĺĈŨƃËśóǝšŭŘŘĺśŨǝËİíǝďËśíƃËśóǝšŭŘŘĺśŨƿ Telecom services: Charges on telephone and data services including mobile phone services and the cost of telephone calls, internet services and data transmission.


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 çĺƂóśǝŨďóǝƛƂóǝŨśËƂóĨǝšŭæšóçŨĺśšƿǝTďóśóǝËśóǝĈĺŭśǝįËĢĺśǝ¡Xǝ government sources used, each providing size of enterprise


data for each subsector on a quarterly/annual basis. 1.Quarterly Survey of Capital Assets: This survey collects expenditure data on hardware and software. It has a sample size of 24,500 per quarter, requesting information from private enterprises.


2. Annual Business Survey: This survey is the key resource for understanding the detailed structure and ŘóśĈĺśįËİçóǝĺĈǝóİŨóśŘśĒšóšǝËçśĺššǝŨďóǝ¡XƿǝPËśŨǝĺĈǝŨďóǝ data gathered is spend on software, computer services and telecom services. The sample size is 62,000.


3. Annual Population Survey: This survey is a continuous


1. Historical travel sector spend data is used in conjunction with growth in the number of employees, passenger numbers ËİíǝŨŭśİĺƂóśǝŨĺǝĈĺśóçËšŨǝĈŭŨŭśóǝóƈŘóİíĒŨŭśóƿǝVŭšŨĒƛçËŨĒĺİǝ for this approach is based on the strong relationship found between total IT spend and the demographic measures.


2. Demographic forecasts for each sector are based on historical trends and on how each sector’s data relates to the whole economy and its growth. The process is aided by timely available sector level demographic data.


3. The historical and projected total IT and telecom šóśƂĒçóšǝšŘóİíǝĈĺśǝóËçďǝĺĈǝŨďóǝƛƂóǝŨśËƂóĨǝšóçŨĺśšǝĒšǝ íĒšËĉĉśóĉËŨóíǝŨĺǝŘśĺíŭçóǝËǝƛİËĨǝįËŨśĒƈƿǝPśĺĢóçŨĒĺİšǝ are made by using the 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 for each employee band within each travel sector.


GTǝËİíǝŨóĨóçĺįǝšŨËƖƹǝ>śĺššǝŘËƉǝĒİçĨŭíĒİĉǝæóİóƛŨšƿ Enterprise: GšǝËǝæŭšĒİóššǝŭİĒŨǝŨďËŨǝĒšǝíóƛİóíǝËšǝËǝĨóĉËĨǝŭİĒŨƺǝ person or group of people producing goods or services under their own control and with their own legal identity. A branch ĺśǝĺƗçóǝĺĈǝËǝĨËśĉóśǝçĺİçóśİǝĒšǝİĺŨǝĒİǝĒŨšóĨĈǝËİǝóİŨóśŘśĒšóƿ Rounding: The number of enterprises is rounded to the İóËśóšŨǝƛƂóƿǝ¸ďóśóǝŨďóǝİŭįæóśǝĺĈǝóİŨóśŘśĒšóšǝĒšǝśĺŭİíóíǝŨĺǝ zero, the associated IT expenditure values are included in the nearest adjacent employee bond with non-zero enterprise óİŨśƉƿǝTďĒšǝĒšǝŨĺǝóİšŭśóǝçĺİƛíóİŨĒËĨĒŨƉǝŨĺǝšŭśƂóƉǝśóšŘĺİíóİŨšƿ


household survey providing social and labour market variables. It also uses data from the Labour Force Survey. Data collected includes occupation and pay, thereby óİËæĨĒİĉǝGTǝËİíǝŨóĨóçĺįǝšŨËƖǝçĺšŨšǝŨĺǝæóǝíóŨóśįĒİóíƿǝ The sample size is 320,000 respondents a year.


4. Inter-Departmental Business Register (IDBR): This register ĒšǝËǝçĺįŘśóďóİšĒƂóǝĨĒšŨǝĺĈǝ¡XǝæŭšĒİóššóšǝŨďËŨǝŘśĺƂĒíóšǝŨďóǝ 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 2.7 million óİŨóśŘśĒšóšǝĒİǝËĨĨǝšóçŨĺśšǝĺĈǝŨďóǝ¡XǝóçĺİĺįƉƿǝGŨǝĒšǝŭšóíǝŨĺǝŘśĺƂĒíóǝ ŨďóǝíóįĺĉśËŘďĒçǝšŨśŭçŨŭśóǝĺĈǝŨďóǝƛƂóǝŨśËƂóĨǝĒİíŭšŨśƉǝšŭæšóçŨĺśšƿǝ This includes number of enterprises, employment and turnover.


In addition, other government sources are used for sea passenger İŭįæóśšƺǝŨŭśİĺƂóśǝËİíǝóçĺİĺįĒçǝĈĺśóçËšŨšƿǝ)įŘĨĺƉįóİŨǝËİíǝ>#Pǝ ĉśĺƃŨďšǝËśóǝšĺŭśçóíǝĈśĺįǝŨďóǝlƗçóǝĈĺśǝ ŭíĉóŨǝRóšŘĺİšĒæĒĨĒŨƉƿǝ Air passenger numbers are obtained from the CAA.


50 — OCTOBER 2023 — TRAVOLUTION.COM


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