Industry Analysis & Industry Trends
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A number of factors have influenced the industry over the past five years, including the state of the economy, the state of the airline industry and other travel-related trends. With consumer spending plummeting during the recession, consumers were less likely to spend money on nonessential travel, pushing down computer reservation system (CRS) companies' commission rates and fees as consumer scaled back on spending. Industry revenue was also negatively affected by falling domestic travel and international arrivals into the United States. Domestic travel is improving, however, with a greater number of consumers and business customers taking trips. As such, a percentage of that rise will likely flow into CRS companies' coffers.... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity in the Travel Computer Reservation Systems industry is moderate. Wages and capital costs are considerable expenses in the industry as demand for talent is very high and capital investment in computers and related technology raise average depreciation costs. The industry's ratio of capital depreciation charges to labor costs is around 0.23:1 (i.e. depreciation at about 7.1% of revenue and wages 31.3% of revenue in 2011).
Most Travel Computer Reservation Systems companies need only limited capital goods, like server computers and office space. In most ways, software can be considered an intangible product; producing quality software chiefly requires talented employees and time. The... purchase to read more