Executive summary

Scope

• The opinions and forward looking statements of 306 industry executives have been captured in our in-depth survey, of which 45% represent Director and C-level respondents
• The research is based on primary survey research conducted by World Market Intelligence accessing its B2B panels comprised of senior purchase decision makers and leading supplier organizations
• The geographical scope of the research is global – drawing on the activity and expectations of leading industry players across the Americas, Europe, Asia-Pacific and Africa and Middle East
• This report covers data and analysis on buyer expenditure, procurement and industry developments
• Key topics covered include hotel industry buyer expenditure activity, procurement behaviors and strategies, threats and opportunities, economic outlook and business confidence.
• In the report buyers identify what suppliers need to do to maintain their business and the key actions being taken by industry players to overcome the leading business threats
• The report examines current practices and provides future expectations over the next 12-24 months
• The report provides qualitative analysis of the key industry threats and opportunities and contains full survey results

Key highlights

• China, Brazil and Eastern Europe are predicted to be the fastest growing regions among developing countries for the hotel industry. The expansion of business activities in emerging markets, an increase in economic growth combined with changes in consumer lifestyles and a rise in disposable income are fuelling growth.
• The majority of the hotel operators will be increasing procurement spend over the next 12 months. The average size of the annual procurement budgets of the companies is US$67.8 million
• Overall, 51% of respondents from hotel operators agree that in order to maintain and win their business, suppliers will have to improve customer service

Reasons to buy

• Drive revenues by understanding future product investment areas and growth regions
• Formulate effective sales and marketing strategies by identifying how buyer budgets are changing and direction of spend in the future
• Better promote your business by aligning your capabilities and business practices with your customer’s changing needs
• Secure stronger customer relationships by understanding the leading business concerns and changing strategies of industry buyers
• Predict how the industry will grow, consolidate and where it will stagnate
• Uncover the business outlook, key challenges and opportunities identified by suppliers and buyers

Table of contents

1 Introduction
1.1 What is this report about?
1.2 Definitions
1.3 Methodology
1) Online Survey
3) Data Analysis and Report Writing
4) Quality Control
1.4 Profile of survey respondents
1.4.1 Profile of buyer respondents
1.4.2 Profile of supplier respondents
2 Executive Summary
3 Industry Dynamics
3.1 Revenue growth expectations
3.1.1 Revenue growth expectations by company type
3.1.2 Revenue growth expectations by region
3.1.3 Revenue growth expectations by turnover
3.1.4 Revenue growth expectations by senior level respondents
3.2 Future developments in business structure
3.2.1 Future developments by buyers
3.2.2 Future developments by suppliers
3.3 Merger and acquisition activity predictions
3.3.1 Merger and acquisition activity predictions by buyers
3.3.2 Merger and acquisition activity predictions by suppliers
3.3.3 Merger and Acquisition activity predictions by region
3.3.4 Merger and acquisition activity predictions by company turnover
4 Hotel Industry Market Growth Outlook
4.1 Demand in emerging markets
4.1.1 Demand in emerging markets by buyers
4.1.2 Demand in emerging markets by suppliers
4.1.3 Demand in emerging markets by region
4.1.4 Demand in emerging markets by company turnover
4.2 Growth expectations in developed countries
4.2.1 Growth expectations in developed countries by buyers
4.2.2 Growth expectations in developed countries by suppliers
4.2.3 Growth expectations in developed countries by region
4.2.4 Growth expectations in developed countries by company turnover
5 Threats And Opportunities for the Hotel Industry
5.1 Leading business concerns for 2011–2012
5.1.1 Leading business concerns for 2011–2012 company type
5.1.2 Leading business concerns for 2011–2012 by region
5.1.3 Leading business concerns by company turnover
5.2 Key supplier actions to maintain and win buyer business
5.2.1 Actions to maintain and secure buyer business by buyers
5.2.2 Actions to maintain and secure buyer business by region
5.2.3 Actions to maintain and secure buyer business by turnover
5.2.4 Actions to maintain and secure buyer business by procurement budget
5.2.5 Actions to maintain and secure buyer business by purchasing decision authority
6 Hotel Industry Buyer Spend Activity
6.1 Annual procurement budgets
6.1.1 Annual procurement budgets by company type
6.1.2 Annual procurement budgets by region
6.1.3 Annual procurement budgets by company turnover
6.2 Planned change in procurement spend
6.2.1 Planned change in procurement spend by region
6.2.2 Planned change in procurement spend by company turnover
6.3 Planned change in procurement spend by product and service category
6.3.1 Planned change in procurement spend by product and service category – region
6.3.2 Planned change in procurement spend by product and service category - company turnover
6.4 Variations in regional supplier prices
6.4.1 Variations in regional supplier prices by region
6.4.2 Variations in regional supplier prices by company turnover
7 Procurement Behaviors and Strategies
7.1 Critical success factors for supplier selection
7.2 Future procurement objectives
7.2.1 Future procurement objectives by region
7.2.2 Future procurement objectives by company turnover
7.3 E-procurement
7.3.1 E-procurement by region
7.3.2 E-procurement by company turnover
8 Appendix
8.1 Full survey results
8.2 Methodology
8.3 Contact us
8.4 About World Market Intelligence
8.5 Disclaimer

List of tables

Table 1: Total Global Hotel Industry Survey Respondents by Company Type, 2011
Table 2: Buyer Respondents by Job Role (%), 2011
Table 3: Buyer Respondents by Global Company Turnover (%), 2011
Table 4: Buyer Respondents by Total Number of Employees in Organizations (%), 2011
Table 5: Buyer Respondents by Region (%), 2011
Table 6: Supplier Respondents by Job Role (%), 2011
Table 7: Supplier Respondents by Global Company Turnover (%), 2011
Table 8: Supplier Respondents by Total Number of Employees in Organization (%), 2011
Table 9: Supplier Respondents by Region (%), 2011
Table 10: Revenue Growth Optimism (%), 2009–2011
Table 11: Revenue Growth Optimism by Buyers (%), 2009–2011
Table 12: Revenue Growth Optimism by Suppliers (%), 2009–2011
Table 13: Revenue Growth Optimism by Region (%), 2009–2011
Table 14: Revenue Growth Optimism by Turnover (%), 2011
Table 15: Revenue Growth Optimism by Senior Level Respondents (%), 2011
Table 16: Key Expected Changes In Business Structure in the Hotel Owners and Operators (%), 2011
Table 17: Key Expected Changes In Business Structure in the Hotel Industry Suppliers (%), 2011
Table 18: Merger and Acquisition Activity Expectations Hotel Owners and Operators, 2009–2010–2011
Table 19: Merger and Acquisition Activity Expectations Hotel Industry Suppliers, 2009–2010–2011
Table 20: Merger and Acquisition Activity Expectations by Region, 2011
Table 21: Merger and Acquisition Activity Expectations by Company Turnover, 2011
Table 22: Demand in Emerging Markets by Hotel Owners and Operators (%), 2011
Table 23: Demand in Emerging Markets by Hotel Industry Suppliers (%), 2011
Table 24: Growth Expectations in Developed Countries by Hotel Owners and Operators (%), 2011
Table 25: Growth Expectations in Developed Countries by Hotel Industry Suppliers (%), 2011
Table 26: Leading Business Concerns (%), 2009–2011
Table 27: Leading Business Concerns by Company Type (%), 2011–2012
Table 28: Leading Business Concerns by Region (%), 2011–2012
Table 29: Leading Business Concerns by Company Turnover (%), 2011–2012
Table 30: Actions to Maintain and Secure Buyer Business - Buyer Responses (%), 2011
Table 31: Actions to Maintain and Secure Buyer Business - Buyer vs. Supplier Responses (%), 2011
Table 32: Actions to Maintain and Secure Buyer Business by Region (%), 2011
Table 33: Actions to Maintain and Secure Buyer Business by Company Turnover (%), 2011
Table 34: Actions to Maintain and Secure Buyer Business by Procurement Budget (%), 2011
Table 35: Annual Procurement Budgets of Hotel Buyers in US$ (%), 2009–2011
Table 36: Annual Procurement Budgets vs. Cost Containment (%), 2011
Table 37: Annual Procurement Budgets in US$ by Company Type (%), 2011
Table 38: Annual Procurement Budgets in US$ by Region(%), 2011
Table 39: Annual Procurement Budgets in US$ by Company Turnover (%), 2011
Table 40: Increase in Revenue Growth vs. Procurement Budget (%), 2011
Table 41: Expected Change in Total Procurement Expenditure of Hotel Buyers (%), 2011
Table 42: Expected Change in Total Procurement Expenditure by Region (%), 2011
Table 43: Expected Change in Total Procurement Expenditure by Company Turnover (%), 2011
Table 44: Company Revenue Growth Optimism: Cross Industry Comparisons (%), 2011
Table 45: Future Change in Expenditure by Product and Service Category, Hotel Operators (%), 2011
Table 46: Variations in Regional Supplier Prices (%), 2011
Table 47: Variations in Regional Supplier Prices by Region (%), 2011
Table 48: Variations in Regional Supplier Prices by Company Turnover (%), 2011
Table 49: Critical Success Factors for Supplier Selection - Buyers vs. Supplier, 2011
Table 50: Future Procurement Objectives (%), 2011
Table 51: Future Procurement Objectives by Region (%), 2011
Table 52: Future Procurement Objectives by Company Turnover (%), 2011
Table 53: E–Procurement: Level of Implementation (%), 2011
Table 54: Procurement Budget Increase vs. E-Procurement (%), 2011
Table 55: E–Procurement: Level of Implementation by Region (%), 2011
Table 56: E–Procurement: Level of Implementation by Company Turnover (%), 2011
Table 57: Survey Results - Closed Questions

List of figures

Figure 1: Revenue Growth Optimism (%), 2009–2011
Figure 2: Revenue Growth Optimism by Company Type(%), 2009–2011
Figure 3: Revenue Growth Optimism by Region (%), 2009–2010–2011
Figure 4: Revenue Growth Optimism by Turnover (%), 2011
Figure 5: Revenue Growth Optimism by Senior Level Respondents (%), 2011
Figure 6: Company Revenue Growth Optimism: Cross Industry Comparisons (%), 2011
Figure 7: Key Expected Changes In Business Structure in the Hotel Owners and Operators (%), 2011
Figure 8: Key Expected Changes In Business Structure in the Hotel Industry Suppliers (%), 2011
Figure 9: Merger and Acquisition Activity Expectations Hotel Owners and Operators, 2009–2010–2011
Figure 10: Merger and Acquisition Activity Expectations Hotel Industry Suppliers, 2009–2011
Figure 11: Merger and Acquisition Activity Expectations by Region, 2011
Figure 12: Merger and Acquisition Activity Expectations by Company Turnover, 2011
Figure 2: Top Ten Growth Regions (%), 2011
Figure 14: Top Five Emerging Markets, 2011
Figure 15: Demand in Emerging Markets by Hotel Owners and Operators (%), 2011
Figure 16: Demand in Emerging Markets by Hotel Industry Suppliers (%), 2011
Figure 17: Demand in Emerging Markets by Region (%), 2011
Figure 18: Demand in Emerging Markets by Company Turnover (%), 2011
Figure 19: Top Five Emerging Markets, 2011
Figure 20: Growth Expectations in Developed Countries by Hotel Owners and Operators (%), 2011
Figure 21: Growth Expectations in Developed Countries by Hotel Industry Suppliers (%), 2011
Figure 22: Growth Expectations in Developed Countries by Region (% 'Increase' Responses), 2011
Figure 23: Growth Expectations in Developed Countries by Company Turnover (% 'Increase'), 2011
Figure 24: Leading Business Concerns (%), 2011–2011
Figure 25: Leading Business Concerns (%), 2011–2011
Figure 26: Actions to Maintain and Secure Buyer Business - Buyer Responses (%), 2011
Figure 27: Actions to Maintain and Secure Buyer Business - Buyer vs. Supplier Responses (%), 2011
Figure 28: Actions to Maintain and Secure Buyer Business by Company Turnover (%), 2011
Figure 29: Actions to Maintain and Secure Buyer Business by Purchasing Decision Authority (%), 2011
Figure 30: Annual Procurement Budgets of Hotel Buyers in US$ (%), 2009 and 2011
Figure 31: Annual Procurement Budgets vs. Cost Containment (%), 2011
Figure 32: Annual Procurement Budgets in US$ by Company Type (%), 2011
Figure 33: Annual Procurement Budgets in US$ by Region(%), 2011
Figure 34: Annual Procurement Budgets in US$ by Company Turnover (%), 2011
Figure 35: Expected Change in Total Procurement Expenditure of Hotel Buyers (%), 2011
Figure 36: Expected Change in Total Procurement Expenditure by Region (%), 2011
Figure 37: Expected Change in Total Procurement Expenditure by Company Turnover (%), 2011
Figure 38: Future Change in Expenditure by Product and Service Category, Hotel Operators (%), 2011
Figure 39: Future Increase in Expenditure by Product and Service Category, Hotel Buyers (%), 2011
Figure 40: Future Increase in Expenditure by Product and Service Category by Region (%), 2011
Figure 41: Future Increase in Expenditure by Product and Service Category by Turnover (%), 2011
Figure 42: Variations in Regional Supplier Prices (%), 2011
Figure 43: Variations in Regional Supplier Prices by Region (%), 2011
Figure 44: Variations in Regional Supplier Prices by Company Turnover (%), 2011
Figure 45: Critical Success Factors for Supplier Selection - Buyers vs. Suppliers, 2011
Figure 46: Critical Success Factors for Supplier Selection - Buyers vs. Suppliers, 2011
Figure 47: Future Procurement Objectives (%), 2011
Figure 48: E–Procurement: Level of Implementation (%), 2011
Figure 49: E–Procurement: Level of Implementation by Region (%), 2011
Figure 50: E–Procurement: Level of Implementation by Company Turnover (%), 2011