SOURCE: MarketResearch.com

MarketResearch.com

July 05, 2011 10:08 ET

Asia Pacific Region Has the Highest Hotel Procurement Budget

ROCKVILLE, MD--(Marketwire - Jul 5, 2011) - MarketResearch.com has announced the addition of World Market Intelligence's new report "Global Hotel Industry Outlook Survey 2011-2012: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies," to their collection of Travel Services market reports. For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=6428834

The hotel industry is more optimistic about revenue growth in 2011 relative to the previous 12 months (reference Figure 1 below). The increase of optimism, based on the comparison of 2011 survey results with Q2 2010, suggest that initiatives implemented in 2010 have been sustained, and measures are being taken to maintain industry growth at an escalating rate.

Across the industry key expected changes in business structure for 2011 have changed slightly comparing survey results from 2010. 'Improving operational efficiency' and 'expand in current market' have been identified by respondents to be the expected changes in 2011. Respondents from the hotel industry predict that there will be either a significant increase in levels of consolidation or an increase in M&A activity over the next 12 months. Higher operating costs, rising competition, the need to increase geographical presence in key markets, business competence and pressure on bottom-line performances act as stimulus to industry consolidations.

Both hotel operators and supplier respondents are optimistic about market growth in China, Brazil, Eastern Europe, Russia and India. Irrespective of company turnover, emerging markets such as China, India and Russia are identified as offering the greatest growth potential to the industry in the next 12 months. Singapore, Taiwan and Hong Kong, Germany and the UK have been identified as developed regions with the most growth potential in 2011 according to buyers. Similarly, hotel industry suppliers believe the same countries as having the most potential as developed regions.

The average size of the global annual procurement budgets for hotel industry buyer respondents is estimated at US$67.8 million. A comparison of global average procurement budgets by operating region shows that hotel industry buyer respondents in Asia-Pacific have the highest procurement budgets, at an average of US$108.4 million in 2011. The next largest average budgets, at US$61 million and US$57.2 million respectively are companies with leading operations in Europe and the Rest of the World. Respondents from companies that operate in North America have an average procurement budget of US$23.9 million.

For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=6428834

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