Global Air Travel Services Category - Procurement Market Intelligence Report

  • Published: Jan 2019
  • Pages: 106
  • SKU: IRCMSTR10248-1
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Key findings: Air travel services


This air travel services sourcing and procurement report offers a predictive analysis of the critical cost drivers that will help buyers to determine their total cost of ownership while procuring air travel services. Additional insights include the current supply market trends, analysis of the regional spend potential, category pricing strategies, and supplier selection criteria.


In recent times, the frequency of passengers traveling by flights has considerably increased which is directly contributing to the category growth to a large extent. Improving access to air travel services because of the introduction of low-cost long-haul flights along with a boosting tourism industry in the developing nations will also help in accelerating the category spend momentum. The increasing focus of the major end-user industries such as consulting, tourism, and BFSI, on cutting down their travel budget has also been observed to drive the category growth.

For more information on the year-over-year spend growth rate, download a free sample report.

Insights delivered


Enterprises looking to procure air travel services can leverage this report to better plan their category spend and identify avenues to reduce excess spend. An overview of the pricing models, supply chain margins, supplier cost structure, and regional spend dynamics is also offered in this procurement market intelligence report.

Our portfolio of reports on the travel and entertainment category help buyers understand:

  • Global and regional spend potential for air travel services for the period of 2018-2023
  • Top suppliers and their cost structure
  • US supply market scenario
  • Incumbent supplier evaluation metrics

Analyze the global category spend for air travel services


The rapidly growing businesses coupled with the improving connectivity between the tier 2 and tier 3 cities are largely accounting for an impressive category spend growth rate in the developing nations. Countries in APAC are receiving significant projects which are being outsourced by the leading manufacturing hubs from the developed nations. Consequently, this is creating an immense requirement for outbound flight travels from APAC to other developed nations such as the US, the UK, and Germany.

To know more about the accurate spend growth rate of this market until 2023, download a free sample.

This air travel services sourcing and procurement report offers coverage of:

  • Regional and global spend dynamics
  • Cost drivers impacting pricing
  • Market favorability index for suppliers


Optimize category spend for air travel services


In the corporate sector, travel expenses typically constitute a significant portion of the budget. One of the best procurement practices recommended for buyers from this sector is to diligently monitor and analyze travel expenses which will help in getting actionable insights in minimizing the overall category spend. Buyers can integrate the spend tracking tools with the ERP of their organizations to get the accurate data related to their travel spend.

This market intelligence report on air travel services also offers coverage of:

  • Cost drivers impacting pricing
  • Total cost of ownership
  • Overview of pricing models and their cost structure


Assess category spend for the US region


Introduction of cost-effective prices for round trips from the US to Asian cities is favoring the outbound air travel services in the US. Increasing demand for charter flights from the corporate sector will also result in an incremental category spend in the region. According to reports, the leading service providers are contemplating to introduce low-cost long-haul flights to widen the access of the middle-class income group. This is expected to accelerate the category growth in the US to a large extent.

Additional information offered in this air travel services sourcing and procurement report will help buyers analyze:

  • Category cost drivers in the US
  • Margins of suppliers in the US
  • Price outlook and forecasts until 2023

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Build strategies for effective supplier selection


Partnering with an air travel services provider might entail major investment which makes it essential for buyers to comprehend the price structure offered by the provider. Ensuring transparency on the pricing policies will help avoid price fluctuations, identify any hidden charge, fines, penalties, and also aids in understanding the billing and payment cycles.

This procurement market intelligence report on air travel services report identifies the significant costs incurred by suppliers and provides additional information on:

  • Cost-benefit analysis of pricing models
  • Supplier relationship management practices
  • Technology-facilitated procurement metrics


Devise effective category management strategies for air travel services


Airfares are extremely dynamic based on the time of booking. Typically, in the high-traffic routes, the cost is higher if the date of booking is closer to the travel date. Therefore, category managers must efficiently optimize the travel itinerary to avoid such ad-hoc and expensive travel ticket purchases.

Key insights offered in this market intelligence report on air travel services will help the buyers identify:

  • Supplier margins and selection criteria
  • Buyer ecosystem and factors influencing the procurement process
  • Strategic sourcing and category management strategies


Determine the spend dynamics for key geographies


Factors like high demand for long-haul flights for business purposes and leisurely air travel along with favorable regulations are exerting a cumulative influence on the aviation industry in APAC. According to predictions, APAC will gain the highest market share in the coming years. The increasing adoption of low-cost long-haul airlines will continue favoring the category spend momentum in North America and Europe despite predictions of a marginal decline in the market share of those regions. The growth of the MNCs in South America will result in increasing passenger traffic, thereby; contributing to the category spend momentum in the region.

Key geographies analyzed in this air travel services sourcing and procurement report include the following:

  • APAC
  • MEA
  • Europe
  • North America
  • South America

Information on the top air travel services suppliers and significant risks faced while procuring air travel services is offered in this market intelligence report. Download a free sample to access the reports complete scope of coverage.

Key Features of Report

Supply Market Insights
Procurement Best Practices
Cost Saving Opportunities
Pricing Models
Negotiation Strategies
Category Risk Analysis
Key Supplier Analysis
Supplier Capability Matrix


Air Travel Services - Category Spend Analysis

According to SpendEdge analysts, one of the primary growth drivers for the global air travel services market is the rise in investments in business intelligence solutions. Many airlines are investing in business intelligence solutions to gain customer insights, monetize data, and enhance operational efficiencies and risk management. Airlines are also increasingly investing in predictive analytics tools for effective demand forecasting.


Air Travel Services – Procurement Best Practices

Buyers must use performance-tracking metrics to assess performance of suppliers. It is important for category managers to track and measure performance of suppliers against a set of defined KPIs (that are agreed upon by both parties during the contract negotiation phase). The performance of suppliers can also be linked to a portion of their fee, and can be paid upon rendering of services in a satisfactory manner.


Air Travel Services - Procurement Challenges

Based on the analysis in this report, a major procurement pain point experienced by the buyers is the decline in customer service levels. SpendEdge’s procurement specialists predict that the buyers must gauge service levels of incumbent suppliers and offer clarity to suppliers on minimum service levels expected.

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PART 01: Executive Summary

PART 02: Market Insights

  • Global category spend
  • Category spend growth
  • Spend segmentation by region
  • Regional spend dynamics
  • Regional influence on global spend
  • Regional spend opportunity for suppliers

PART 03: Category Pricing Insights

  • Pricing outlook
  • Supplier cost structure
  • Outlook for input costs
  • Total cost of ownership analysis
  • Overview of pricing models
  • Comparison of pricing models
  • Supply chain margins
  • Cost drivers impacting pricing
  • Volume drivers impacting pricing

PART 04: Cost-Saving Opportunities

  • Supplier-side levers
  • Buyer-side levers
  • Quantifying cost-saving opportunities
  • Quantifying cost savings by negotiation strategies

PART 05: Best Practices

  • Innovation and success stories
  • Procurement excellence best practices
  • Procurement best practices
  • Sustainability practices

PART 06: Category Ecosystem

  • Market favorability index for suppliers
  • Competitiveness index for suppliers
  • Buyer power
  • Supplier power
  • Threat of new entrants
  • Threat of substitutes
  • Buyer ecosystem
  • Supplier ecosystem

PART 07: Category Management Strategy

  • Category management objectives
  • Supplier and buyer KPIs
  • Outsourcing category management activities
  • Risk management

PART 08: Category Management Enablers

  • Procurement organization
  • Category enablers

PART 09: Suppliers Selection

  • RFx essentials
  • Supplier selection criteria
  • Service level agreement
  • Incumbent supplier evaluation metrics

PART 10: Suppliers Under Coverage

  • Overview
  • Supplier positioning
  • Profile: American Airlines
  • Profile: Delta Air Lines
  • Profile: United Airlines
  • Profile: Deutsche Lufthansa
  • Profile: AIR FRANCE KLM
  • Profile: IAG

PART 11: US Market Insights

  • Category spend in the US
  • Price outlook
  • Supplier cost structure in the US
  • Margins of suppliers in the US
  • Category cost drivers
  • Category volume drivers
  • Overview of best practices in the US
  • Procurement best practices in the US
  • US supply market overview
  • Supplier positioning for the US
  • Regional category risks

PART 12: Category Definition

  • Category hierarchy
  • Category scope
  • Category map

PART 13: Appendix

  • List of abbreviations
  • Key Notes
  • Global category spend (2018-2023)
  • Category spend growth (2018-2023)
  • Regional spend dynamics
  • Regional spend dynamics
  • Comparison of category maturity across regions
  • Regional spend opportunity for suppliers (2018-2023)
  • Category pricing dynamics
  • Supplier cost breakup
  • Input cost dynamics
  • Total cost of ownership model
  • Benefit comparison of pricing models
  • Pricing models – comparison matrix
  • Supplier margin analysis
  • Margin analysis across supply chain
  • Cost drivers
  • Volume drivers
  • Cost-saving opportunities: Supply-side levers
  • Cost-saving opportunities: Demand-side levers
  • Cost-saving opportunity matrix
  • Negotiation grid
  • Innovation and success stories
  • Procurement excellence summary: Impact on the category
  • Supplier relationship management metrics
  • Strategic sourcing and category management metrics
  • Technology-facilitated procurement metrics
  • Procurement best practices dashboard
  • Sustainability practices: Impact on the category
  • Sustainability best practices
  • Market environment score
  • Market competitiveness score
  • Buyer power score
  • Supplier power score
  • Ease of market entry score
  • Ease of substitution score
  • Buyer ecosystem: Outlook
  • Supplier ecosystem: Outlook
  • Ecosystem disruption threats
  • Key category management objectives
  • Supplier KPI dashboard: Importance for the category
  • Buyer KPI dashboard: Importance for the category
  • Category management enablers
  • Risk management matrix
  • Category enablers: Organization
  • Category enablers: Technology
  • RFx questions
  • Phase I RFI considerations
  • SLA terms
  • Supplier performance benchmarking criteria
  • Supplier operational capability matrix
  • Supplier positioning matrix
  • American Airlines – Key information dashboard
  • Delta Air Lines – Key information dashboard
  • United Airlines – Key information dashboard
  • Deutsche Lufthansa – Key information dashboard
  • AIR FRANCE KLM – Key information dashboard
  • IAG – Key information dashboard
  • US category spend (2018-2023)
  • Category pricing dynamics
  • Supplier cost breakup
  • Supplier margin analysis
  • Margin analysis across supply chain
  • Cost drivers
  • Volume drivers
  • Procurement excellence summary: Impact on the category
  • Supplier relationship management
  • Strategic sourcing and category management
  • Technology-facilitated procurement
  • Procurement best practices dashboard
  • Supplier operational capability matrix
  • Supplier positioning matrix
  • Risk management matrix
  • Category definition
  • Category nuances
  • Importance of category relative to other categories

Research Framework

SpendEdge presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.


Primary research

  • Procurement heads
  • Category managers
  • Sourcing consortium professionals
  • Industry experts and thought leaders
  • Procurement managers
  • Category heads of suppliers
  • Client account heads/managers
  • Client and industry consultants

Secondary research

  • Industry journals and reports
  • Periodicals and new articles
  • Category webinars
  • Internal categiry playbooks
  • Industry and government websites on regulations and compliance
  • Internal databases
  • Industry blogs/thought leader briefings


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