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Travel and Tourism Industry Business Confidence Report - H1 2016

Travel and Tourism Industry Business Confidence Report - H1 2016


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Executive Summary

The existing economic environment is stable for the travel and tourism industry and consumer confidence will change positively in H1 2016 (January 2016-June 2016). Moreover, companies are optimistic about growth prospects during the next six months owing to expectations of higher expenditure on IT infrastructure, and marketing and advertising, and renewed focus on customer retention and improving operational efficiency. Sales will be higher in North America and Europe during H1 2016, whereas spend will increase slightly on research and analysis over the next six months.

Key Findings

Overall, 44% of travel and tourism industry executives indicate that the current global economic environment is stable

The majority of survey respondents expect an optimistic outlook for both company and industry growth during the next six months

Over one-quarter of survey respondents anticipate an increase of 0.1% to 3.99% in supplier prices of equipment during the next six months

Expenditure will increase on marketing and advertising, and IT infrastructure over the next six months

Executives operating in Asia-Pacific and the Rest of the World view social unrest as the top concern for the next six months

Over three-quarters of executives operating in North America and Asia-Pacific indicate customer retention as the top priority for the next six months

Synopsis

Canadeans Travel and Tourism Industry Business Confidence Survey H1 2016 presents executives opinion on the business environment over January 2016-June 2016. Organizations can understand the market by analyzing existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities. Additionally, organizations will have access to information categorized by region wherever applicable.

What else does this report offer?

Current state of the global economy: examine prevailing economic conditions globally and across various regions

Company and industry growth outlook: know industry executives expectations towards their companys growth prospects and that of the industry over the next six months

Change in consumer confidence: analyze travel and tourism industry executives opinion about the change in consumer confidence during H1 2016

Supplier prices projection: determine expected changes in supplier prices across various categories and their impact on business confidence

Change in staff headcount and sales performance: track expected changes in staff headcount and sales for H1 2016 among industry executives globally

Significant investment activities: know about various areas in which industry executives intend to invest over the next six months

Business concerns: access information about potential business concerns indicated by survey respondents for H1 2016

Key priorities: examine the top priorities for industry executives operating in various regions

Reasons To Buy

Organizations can make effective business strategy decisions by knowing the prevailing business conditions and sentiment within the travel and tourism industry

Organizations will be supported in business expansion decisions by providing information about projected changes in sales performance and supplier prices

Helps to improve the operational efficiency of the organization by knowing about key priorities and the main concerns of travel and tourism industry executives

Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H1 2016

1 Introduction

1.1 Definitions

1.2 Methodology and sample size

1.3 Respondent profile

2 Economic State, Growth Prospects and Consumer Confidence

2.1 Existing economic environment

2.1.1 Over one-third of respondents highlight the current global economic conditions as stable

2.1.2 In total, 40% of FMCG industry executives indicate favorable or very favorable economic conditions in North America

2.1.3 Executives who operate in North America and Europe have more favorable opinion about their region

2.2 Industry and company growth outlook

2.2.1 The majority of respondents expect an optimistic outlook for company growth prospects in H1 2016

2.2.2 Overall, 42% of industry executives are neither optimistic nor pessimistic over growth prospects for the industry in H1 2016

2.2.3 The positive outlook towards company and industry growth is highest among respondents with business operations in Asia-Pacific

2.3 Expected change in consumer confidence

2.3.1 In total, 49% of executives project no change in consumer confidence over the next six months

2.3.2 The majority of respondents with business operations in Asia-Pacific and North America anticipate a significant increase in consumer confidence in H1 2016

3 Supplier Prices, Staff Headcount and Sales Performance

3.1 Supplier prices expectations

3.1.1 FMCG industry executives anticipate a slight increase in prices of semi-finished products and ingredients in H1 2016

3.1.2 On average, FMCG industry respondents project an increase of 2% in supplier prices for raw materials during H1 2016

3.1.3 Over one-third of industry executives foresee an increase of 0.1% to 3.99% in supplier prices for semi-finished products during the next six months

3.1.4 Overall, one-quarter of respondents operating in Asia-Pacific expect no change in supplier prices of packaging during H1 2016

3.1.5 On average, FMCG industry executives project an increase of 2.5% in supplier prices for ingredients over the next six months

3.2 Anticipated change in staff head count and sales projections

3.2.1 Respondents who operate in the Rest of the World anticipate the highest sales growth in H1 2016

3.3 Anticipated change in spend on key activities

3.3.1 Executives foresee an increase in expenditure on new product development and mergers and acquisitions over the next six months

4 Business Concerns and Organizational Priorities

4.1 Level of concerns and expected impact

4.1.1 Economic, industrial, and societal issues can adversely impact operations, reduce profitability, and force the restructuring of business strategies

4.1.2 The performance of developing economies is the biggest concern during H1 2016 for industry executives operating in Asia-Pacific and the Rest of the World

4.1.3 Survey respondents operating in Europe view the performance of the Eurozone and developing economies as the biggest worries over the next six months

4.1.4 Overall, 49% of global FMCG executives are concerned about the performance of developing economies during H1 2016

4.1.5 Rising levels of competition and the availability of substitutes will pose challenges for FMCG organizations over the next six months

4.2 Significance of potential business priorities

4.2.1 Over three-quarters of executives operating in North America and Europe indicate customer retention as the top priority for H1 2016

4.2.2 Respondents from across the globe intend to focus on protecting and growing market share over the next six months

4.2.3 Overall, 92% of executives who operate in Asia-Pacific highlighted focus on new product development over the next six months

5 Appendix

Figure 1: Profile of Respondents

Figure 2: Global Business Outlook - Key Takeouts

Figure 3: Current economic condition - Overall

Figure 4: Current Economic Condition - Region

Figure 5: Current Economic Condition - Those Who Operate and Do Not Operate in a Region

Figure 6: State of the Economy- in Their Words-1

Figure 7: State of the Economy- in Their Words-2

Figure 8: Growth Prospects and Consumer Confidence: Key Takeouts

Figure 9: Industry and Company Growth Prospects - Overall

Figure 10: Industry and company growth prospects - Overall - In detail

Figure 11: Industry and company growth prospects - Region

Figure 12: Anticipated variation in consumer confidence - Overall

Figure 13: Anticipated Variation in Consumer Confidence - Region

Figure 14: Supplier Prices and Consumer Confidence: in Their Words

Figure 15: Supplier Price and Expenditure: Key Takeouts

Figure 16: Category Wise Supplier Prices Highlights

Figure 17: Projected Change in Supplier Prices - Raw Material - Overall and Regional

Figure 18: Projected Change in Supplier Prices - Semi-Finished Products - Overall and Regional

Figure 19: Projected Change in Supplier Prices - Packaging - Overall and Regional

Figure 20: Projected Change in Supplier Prices - Ingredients - Overall and Regional

Figure 21: Staff headcount and sales outlook - Regional

Figure 22: Expenditure Projection on Key Activities - Overall

Figure 23: Priorities and Concerns: Key Takeouts

Figure 24: Concerns: Overview

Figure 25: Top Five Business Concerns - Region

Figure 26: Business Concerns - Regional Highlights

Figure 27: Business Concerns - Overall and Regional - A

Figure 28: Business Concerns - Overall and Regional - B

Figure 29: Top Five Organizational Priorities - Region

Figure 30: Organizational Priorities - Regional Highlights

Figure 31: Organizational Priorities - Overall and Region

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TripAdvisor Inc.

Carlson Rezidor Hotel Group

Mushtaq Group of Hotels

The Ritz-Carlton Hotel Company L.L.C

Five Star Development Resort Communities LLC

Marriott International Inc.

Eastern Crown Hotels Group

Hard Rock Cafe International Inc.

International Business Machines Corporation

Springer-Miller Systems Inc.

Delaware North.

Business Confidence, Economic Outlook, Travel And Tourism, Spend, Equipment, Power And Energy, Global, Technology, Supplier, Staff Headcount, Sales Performance, Consumer Confidence, Threats And Priorities, Growth Prospects, Region


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