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.
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
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:
- 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 report’s complete scope of coverage.
Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
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.