Travolution Innovation Report 2022

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lŭśǝƤƢƤƤǝËİËĨƉšĒšǝĺĈǝŨďóǝĨËŨóšŨǝlƗçóǝ ĈĺśǝcËŨĒĺİËĨǝSŨËŨĒšŨĒçšǝíËŨËǝĺİǝŨďóǝ¡Xǝ ŨśËƂóĨǝĒİíŭšŨśƉǝËİíǝGTǝóƈŘóİíĒŨŭśóǝďËšǝ śóƂóËĨóíǝįĺśóǝËæĺŭŨǝŨďóǝŨśŭóǝĒįŘËçŨǝ ĺĈǝŨďóǝ ĺƂĒíǝŘËİíóįĒçƿ The two-year period of lockdown and

travel restrictions had a devastating ĒįŘËçŨǝËİíǝŨďĒšǝĒšǝśóƜóçŨóíǝĒİǝŨďóǝƤƪȎǝ śóíŭçŨĒĺİǝĒİǝŨóçďǝšŘóİíǝĒİǝƤƢƤƢǝËİíǝ śóæĺŭİíǝĺĈǝĢŭšŨǝƦȎǝĒİǝƤƢƤƣƿ But before we look in more detail at

the data related to IT spend, it’s worth putting into context the impact of the pandemic on employment and revenues ĺĈǝŨďóǝƛƂóǝŨśËƂóĨǝšóçŨĺśšǝƃóǝĨĺĺĥǝËŨƿ Overall, employment levels in travel in

ƤƢƤƣǝƃóśóǝËšǝĨĺƃǝËšǝËŨǝËİƉǝŨĒįóǝƃóǝďËƂóǝ been collecting data for this report ǍšĒİçóǝƤƢƢƪǎǝËŨǝƦƧƦƺƦƦƨǝóįŘĨĺƉóóšƿ TďĒšǝíĺóšǝİĺŨǝśóƜóçŨǝŨďóǝİËŨĒĺİËĨǝ

picture which, thanks to furlough and other measures to save companies from bankruptcy, saw employment remain at ďĒšŨĺśĒçËĨĨƉǝďĒĉďǝĨóƂóĨšƿ

SZ¡bPǝ c#ǝR) l·)R¾ Within travel there have been particularly sharp declines in the Travel Agent and Tour Operator sectors, the former ďËƂĒİĉǝśóçĺśíóíǝËǝíśĺŘǝĺĈǝƣƢƺƢƢƢǝšŨËƖǝ æóŨƃóóİǝƤƢƤƢǝËİíǝƤƢƤƣǝŨĺǝƦƤƺƨƦƣƿ Combined, this sector took a massive

hit in revenues, which slumped from ǳƥƩǞæĒĨĨĒĺİǝĒİǝƤƢƣƫǝŨĺǝËśĺŭİíǝǳƫƿƧǝæĒĨĨĒĺİǝ ĒİǝæĺŨďǝƤƢƤƢǝËİíǝƤƢƤƣƿ Monthly ONS data reveals that

Travel Agent and Tour Operator income śóçĺƂóśóíǝæóƉĺİíǝƧƢȎǝĺĈǝŘśóǑŘËİíóįĒçǝ levels in February and sustained that recovery through to June (Figure 1)ƿ

Figure 1: TRAVEL AGENT AND TOUR OPERATOR MONTHLY REVENUES, 2022 v 2019 £4bn

ǳƥƿƧbn £3bn

ǳƤƿƧbn ǳƤbn

ǳƣƿƧbn ǳƣbn

ǳƧƢƢm 2019 Given that this combined sector

ËçďĒóƂóíǝĢŭšŨǝƤƧȎǝĺĈǝŘśóǑŘËİíóįĒçǝ ËİİŭËĨǝśóƂóİŭóšǝĒİǝæĺŨďǝƤƢƤƢǝËİíǝƤƢƤƣƺǝ śóƂóİŭóšǝšďĺŭĨíǝśóçĺƂóśǝšĒĉİĒƛçËİŨĨƉǝ æóƉĺİíǝƧƢȎǝĒĈǝŨďóǝšóçĺİíǝďËĨĈǝĺĈǝƤƢƤƤǝ įËŨçďóšǝŨďóǝƛśšŨƿ This trend of slump and recovery

closely matches that seen in the Air Passenger sector, which is on track to śóçĺśíǝƤƤƧǝįĒĨĨĒĺİǝŘËššóİĉóśšǝĒİǝƤƢƤƤƺǝ ŨďśóóǑŚŭËśŨóśšǝĺĈǝŘśóǑŘËİíóįĒçǝĨóƂóĨšƿ ĈŨóśǝËǝďóËƂƉǝíóçĨĒİóǝĺĈǝƩƧȎǝĒİǝƤƢƤƢƺǝ

ËĒśŘĺśŨǝŨóśįĒİËĨǝŘËššóİĉóśǝƛĉŭśóšǝĈóĨĨǝ æƉǝËǝĈŭśŨďóśǝƣƥȎǝĒİǝƤƢƤƣƿ ¸ďĒĨóǝóįŘĨĺƉįóİŨǝĒİǝŨďĒšǝšóçŨĺśǝĒİǝƤƢƤƣǝ

was at its lowest level in the period from ƤƢƢƪǝËŨǝƨƫƺƢƣƥƺǝŨďĒšǝƃËšǝËæĺŭŨǝŨďóǝšËįóǝ ĨóƂóĨǝšŭšŨËĒİóíǝæóŨƃóóİǝƤƢƢƫǝËİíǝƤƢƣƦƿ Sea passenger numbers picked up by

ƤƪȎǝĒİǝƤƢƤƣǝËĈŨóśǝËǝƧƨȎǝĈËĨĨǝĒİǝƤƢƤƢǄǝ however, the latest numbers are still some ƧƧȎǝĺƖǝŘśóǑŘËİíóįĒçǝĨóƂóĨšƿǝTďĒšǝŨśËƂóĨǝ sub-sector is by some way the smallest óįŘĨĺƉóśǝËİíǝšŨËƖǝİŭįæóśšǝďËƂóǝ

2022

śóįËĒİóíǝśóĨËŨĒƂóĨƉǝçĺİšĒšŨóİŨǝšĒİçóǝƤƢƢƪƿ Although Hotel employment, or lack of

it, made headlines as travel rebounded, the data indicates the sector reverted to ËǝĨĺİĉǑŨóśįǝİĺśįǝĺĈǝËśĺŭİíǝƥƣƧƺƢƢƢǝ šŨËƖǝËĈŨóśǝËǝŘóśĒĺíǝĺĈǝĉśËíŭËĨǝśĒšóƿ Monthly hotel turnover saw an early

æĺŭİçóǑæËçĥǝĒİǝƤƢƤƣǝƃĒŨďǝİóËśǝĺśǝËæĺƂóǝ pre-pandemic levels from July before a šĨĒĉďŨǝĈËĨĨæËçĥǝĒİǝVËİŭËśƉǝƤƢƤƤƿ However, since then Hotels have posted

ƛƂóǝšŭççóššĒƂóǝįĺİŨďšǝĺĈǝËæĺƂóǝ ŘśóǑŘËİíóįĒçǝĒİçĺįóǝËİíǝËƂóśËĉóíǝƣƤƧȎǝ ĺĈǝƤƢƣƫǝśóƂóİŭóšǝĈśĺįǞbËśçďǝŨĺǝVŭİóƿ

T) DǝSP)c#ǝl¡TZllX Why is this context relevant to IT expenditure? Most obviously, reduced revenues are likely to mean budgets ËśóǞçŭŨǝĈĺśǝŨóçďİĺĨĺĉƉƿǝ ŭŨǝĈËĨĨĒİĉǝ employment could also signify greater ĒİƂóšŨįóİŨǝĒİǝŨóçďǝŨĺǝËŭŨĺįËŨóǝËšǝƛśįšǝ look to do the same or more with fewer ďŭįËİǝśóšĺŭśçóšƿǝ

28 — OCTOBER 2022 — TRAVOLUTION.CO.UK

JANUARY FEBRUARY MARCH APRIL MAY JUNE

JANUARY FEBRUARY MARCH APRIL MAY JUNE

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