Global Airport Supply and Demand: Surveying Sales and Procurement Executives

FARMINGTON, Conn., Feb. 5, 2013 /PRNewswire-iReach/ -- Sales and procurement are inextricably related as next-generation businesses move from a case of the "versus" towards developing collaborative relationships. The relationship between suppliers and buyers is more about agreement, fairness, and profit sharing, particularly as unrelated diversified firms and conglomerates are more present than ever.

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Global Information (GII) in partnership with premium market research publisher ICD Research, provides insight into sales and procurement strategies in the global airport industry from the executives themselves.

Global airport sales and marketing spend survey highlights

The 2013 survey results reveal that 33% of respondents expect their marketing expenditure to rise by 5–25%, while only 6% of respondents expected their marketing expenditure to decline by 1–10%. In total, 66% of global airports industry supplier respondents have marketing budgets of 'less than US$250,000' for 2013 (see graph below).

Executives from the global airport industry expect to see increased levels of consolidation, with 50% of respondents anticipating either a significant increase or an increase in M&A activity in 2013. Increasing oil prices, expansion of business operations in foreign markets, increasing inflationary pressures, and increased privatization of airports are the key stimuli for increasing mergers and acquisitions. Furthermore, respondents across the global airport industry anticipate a considerable increase in capital expenditure on 'new product development', 'employee training', and 'sustainable or green initiatives'. In addition, respondents across the global airport industry anticipate a minimum of a 2% increase of their current workforce in 2013.

Global airport procurement and buyer spend survey highlights

Of respondents across the global airports industry, 52% are more optimistic about revenue growth for their companies in 2013, due to consolidation in the industry, the inclusion of various ancillary revenue sources, and airport expansion programs, all of which are projected to increase the profitability and cost performance of airport operators in 2013. The top three key expected changes for 2013 are to improve operational efficiency, stabilize company finances, and expand in the current market, while in 2012 the emphasis was on improving operational efficiency, expand in current market, new products and services, and focus on sustainability.

Executives from the global airport industry expect to see increased levels of consolidation, with 50% of respondents anticipating either a significant increase or an increase in M&A activity in 2013. Increasing oil prices, expansion of business operations in foreign markets, increasing inflationary pressures, and increased privatization of airports are the key stimuli for increasing mergers and acquisitions. Furthermore, respondents across the global airport industry anticipate a considerable increase in capital expenditure on new product development, employee training, and sustainable or green initiatives. In addition, respondents across the global airport industry anticipate a minimum of a 2% increase of their current workforce in 2013.

Overall, both groups of respondents identified China, Brazil, the Middle East, India, and Russia as the most important regions for growth among emerging markets. The increase in demand for air travel and related services in these regions has been fuelled by a number a factors, with some notable contributors including world-leading economic growth, privatization of airports, expansion of business activities into emerging markets, changing consumer preferences, and increasing disposable incomes. These factors are also expected to increase the demand for airport infrastructure and other support services; for example, passenger traffic at airports in Asia Pacific region registered a 5.1% annual growth during September 2012, and this trend is expected to continue in 2013.

An Executive Summary of Global Airports Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Airports Industry and free sample pages from the full document are available at http://www.giiresearch.com/report/icd231936-global-airports-survey-2012-2013-market-trends.html

An Executive Summary for Global Airports Survey 2013-2014 - Market Trends, Buyer Spend and Procurement Strategies in the Global Airports Industry and free sample pages from the full document are available at http://www.giiresearch.com/report/icd231935-global-airports-survey-2012-2013-market-trends.html

For more market research highlights, technical research news and industry updates, please visit http://www.giiresearch.com/press/

About Global Information Inc. Global Information (GII) (http://www.giiresearch.com) is an information service company partnering with over 300 research companies around the world. Global Information has been in the business of distributing technical and market research for more than 25 years. Expanded from its original headquarters in Japan, Global Information now has offices in Korea, Taiwan, Singapore, Europe and the United States.

Media Contact: Jeremy Palaia of Global Information, Inc., 1-860-674-8796, Press@gii.co.jp

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SOURCE Global Information, Inc.



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