Travolution Innovation Report 2022

INNOVATION REPORT 2022

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The predicted bounce-back in spend on IT in travel in 2021 did materialise as ƃóǝĈĺśóçËšŨǝĨËšŨǝƉóËśƺǝśóƜóçŨĒİĉǝŨśËƂóĨǛšǝ óįóśĉóİçóǝĈśĺįǝŨďóǝ ĺƂĒíǝŘËİíóįĒçƿ Last year, we forecast spend would

rebound by 15%. In fact, it recovered by just 4% but this was due to a correction by ONS to the 2020 numbers. Our

ǳƣƿƥƦǞæĒĨĨĒĺİǝŘśóíĒçŨĒĺİǝƃËšǝĢŭšŨǝæóĨĺƃǝ ŨďóǝǳƣƿƥƪǞæĒĨĨĒĺİǝśóçĺśíóíƿǝ RóƂĒšóíǝƛĉŭśóšǝĈĺśǝƤƢƤƢǝśóƂóËĨóíǝŨďóǝ

šĨŭįŘǝĒİǝŨďóǝƛśšŨǝƉóËśǝĺĈǝŨďóǝŘËİíóįĒçǝ was not as acute as ONS data had šŭĉĉóšŨóíǝËİíǝGTǝóƈŘóİíĒŨŭśóǝĒİǝŨśËƂóĨǝ actually fell by 28%, not the 36% reported last year. Forecast spend for this year is

ǳƣƿƫƪǞæĒĨĨĒĺİƺǝŨĺŘŘĒİĉǝËİƉŨďĒİĉǝŨďóǝšóçŨĺśǝ has seen in the period from 2008, when ƃóǝšŨËśŨóíǝçĺĨĨóçŨĒİĉǝíËŨËǝĈĺśǝŨďĒšǝśóŘĺśŨƿǝǝ GĈǝŨďĒšǝƛĉŭśóǝĒšǝËçďĒóƂóíǝŨďĒšǝƉóËśƺǝĒŨǝ

ƃĺŭĨíǝšŭśŘËššǝŘśóƂĒĺŭšǝďĒĉďšǝšóóİǝĒİǝ ƤƢƣƨƺǝƤƢƣƩǝËİíǝƤƢƣƫƺǝƃďóİǝóƈŘóİíĒŨŭśóǝ topped the £1.8 billion mark in all three 12-month periods. ĨŨďĺŭĉďǝËǝŘĺšĒŨĒƂóǝšĒĉİƺǝƃĒŨďǝĒİƜËŨĒĺİǝ

śŭİİĒİĉǝËŨǝËæĺƂóǝƣƢȎƺǝŨďĒšǝŘśóíĒçŨóíǝ śóçĺśíǝóƈŘóİíĒŨŭśóǝįŭšŨǝæóǝƂĒóƃóíǝĒİǝŨďóǝ çĺİŨóƈŨǝĺĈǝŨďóǝçŭśśóİŨǝįËçśĺóçĺİĺįĒçǝ çďËĨĨóİĉóšǝĈËçĒİĉǝŨďóǝ¡Xƿ

TR ·)ZǝS) TlRǝ lbP RGSlcS šǝËĨśóËíƉǝİĺŨóíƺǝGTǝæŭíĉóŨšǝšďĺŭĨíǝæóǝ

ËššóššóíǝĒİǝŨďóǝçĺİŨóƈŨǝĺĈǝƃĒíóśǝĒİíŭšŨśƉǝ metrics, and this was borne out in the 2021 data which saw Hotels overtake TśËƂóĨǝ ĉóİŨš as the industry’s šóçĺİíǑĨËśĉóšŨǝGTǝšŘóİíóśǝËšǝŨďĒšǝšóçŨĺśǝ recovered earliest (Fig 3, page 29).

Fig 5: IT SPEND IN TRAVEL, 2008-22 £2bn

£1.5bn £1bn DĺŨóĨšǛ £349 million outlay accounted

for 25% of the sector’s total of ǳƣƿƥƪǞæĒĨĨĒĺİƺǝĨóËƂĒİĉǝTśËƂóĨǝ ĉóİŨš with 23% of the total (£314 million). TďóǝƤƥȎǝŭŘĨĒĈŨǝĒİǝHotelǝGTǝšŘóİíǝƃËšǝ

æƉǝĈËśǝŨďóǝæĒĉĉóšŨǝĒİǝŨďóǝŨśËƂóĨǝšóçŨĺśƺǝ ËĨŨďĺŭĉďǝTśËƂóĨǝ ĉóİŨš are forecast to įĺŭİŨǝËǝƛĉďŨæËçĥǝŨďĒšǝƉóËśǝƃĒŨďǝËǝƩƢȎǝ increase compared with DĺŨóĨšǛ 35%.

Indeed, the TśËƂóĨǝ ĉóİŨš sub-sector is ŨďóǝĺİĨƉǝĺİóǝóƈŘóçŨóíǝŨĺǝĺŭŨŘóśĈĺśįǝŨďóǝ ĒİíŭšŨśƉǝËƂóśËĉóǝĺĈǝËǝƦƦȎǝĒİçśóËšóǝĒİǝ 2022. Water Transport, travel’s smallest šóçŨĺśƺǝĨËİĉŭĒšďóšǝĺİǝĢŭšŨǝƣƢȎƿ In 2021, the Air Transport sector

ĒİçśóËšóíǝĒŨšǝšďËśóǝĺĈǝĺƂóśËĨĨǝŨśËƂóĨǝGTǝ spend to 33%, up from 29% in 2020, šŘóİíĒİĉǝǳƦƧƦǝįĒĨĨĒĺİƺǝËǝƨȎǝíóçśóËšóǝ on the previous year. ĺįŘËśĒİĉǝƤƢƤƤǛšǝĈĺśóçËšŨǝƛĉŭśóšǝ

with pre-pandemic 2019 reveals the Hotel sector will have rebounded the best, up 22%, with no other sector įËĥĒİĉǝĒŨǝĒİŨĺǝíĺŭæĨóǝƛĉŭśóšƿ TśËƂóĨǝ ĉóİŨš, on 1%, underlines how ŨďĒšǝšóçŨĺśǝĒšǝĺİĨƉǝśóĉËĒİĒİĉǝĉśĺŭİíƺǝ

while Air Transport and TĺŭśǝlŘóśËŨĺśš are on 8% and 7% respectively and Water Transport remains in reverse at -5%. TďóǝƦȎǝĉśĺƃŨďǝĒİǝ¡XǝŨśËƂóĨǝGTǝšŘóİíǝ

ĒİǝƤƢƤƣǝĨËĉĉóíǝŨďóǝİËŨĒĺİËĨǝËƂóśËĉóǝĺĈǝ 8% but if the 44% predicted this year turns out to be accurate it will be well ËďóËíǝĺĈǝĈĺśóçËšŨǝ¡XǝGTǝĉśĺƃŨďǝĺĈǝƣƤȎƿ TďĒšǝƃĒĨĨǝæśĒİĉǝŨśËƂóĨǛšǝšďËśóǝĺĈǝŨĺŨËĨǝGTǝ

šŘóİíǝËįĺİĉǝËĨĨǝ¡XǝĒİíŭšŨśĒóšǝŭŘǝËǝŨóİŨďǝĺĈǝ ËǝŘóśçóİŨËĉóǝŘĺĒİŨǝŨĺǝƢƿƪȎƺǝšŨĒĨĨǝƃóĨĨǝíĺƃİǝ on the 1.2% recorded as recently as 2016.

SP)c#ǝP)Rǝ)bPZl¾)) TďóǝËįĺŭİŨǝšŘóİŨǝĺİǝGTǝŘóśǝóįŘĨĺƉóóǝ ĒİǞŨďóǝ¡XǝËšǝËǝƃďĺĨóǝďËšǝæóóİǝśĒšĒİĉǝ consistently in recent years and is óƈŘóçŨóíǝŨĺǝšŨËİíǝËŨǝǳƩƺƣƧƥǝŨďĒšǝƉóËśƿ Other than Hotels (£1,106), travel

ŨśËíĒŨĒĺİËĨĨƉǝĺŭŨŘóśĈĺśįšǝŨďóǝ¡XǝËƂóśËĉóƺǝ but Air Transport (£6,577) has been overtaken and TśËƂóĨǝ ĉóİŨš (£7,369) and TĺŭśǝlŘóśËŨĺśšǝǍƪƺƢƣƩǎǝËśóǝæóĒİĉǝ çËŭĉďŨƿǝlİĨƉǝŨďóǝWater Transport sector çĺİŨĒİŭóšǝŨĺǝšĒĉİĒƛçËİŨĨƉǝĺŭŨŘóśĈĺśįƺǝƃĒŨďǝ ǳƣƥƺƦƦƫǝšŘóİŨǝĺİǝGTǝŘóśǝóįŘĨĺƉóóƿǝ

X Sector ‘to spóİíǝǳƣƿƫƪæİǝŨďĒšǝƉóËśǛ

30 — OCTOBER 2022 — TRAVOLUTION.CO.UK

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