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1 IT spend in the hotel sector Benchmark report 2013 Dr Hilary Catherine Murphy & Mr Alexandre Maurice Rappaz by:
13

The IT spend in EMEA Hospitality Business 2007-2012

Jun 19, 2015

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Economy & Finance

EHLmarketing

How should top managers in the hospitality sector define and allocate their future IT spend inside their financial budgets?

This report analyses and interprets the IT PROPERTY LEVEL SPEND data, including IT staff and salaries, from an independent survey of Europe, Africa, Middle-East (EAME) hotels, from 2007 to 2012 and provides an overall view and directional indicators of IT spending for this six year period.

A must have for managers who wish to benchmark their IT allocations.
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Page 1: The IT spend in EMEA Hospitality Business 2007-2012

1

IT spendin the hotel sectorBenchmark report 2013

Dr Hilary Catherine Murphy&

Mr Alexandre Maurice Rappaz

by:

Page 2: The IT spend in EMEA Hospitality Business 2007-2012

An introduction

How should top managers in the hospitality sector define and allocate their IT spend in their financial budgets?

This report analyses and interprets the IT PROPERTY LEVEL SPEND data, including IT staff and salaries, from an independent survey of Europe, Africa, Middle-East (EAME) hotels, from 2007 to 2012 and provides an overall view and directional indicators of IT spending for this six year period.

A must-have for managers who wish to benchmark their IT budgets.

Page 3: The IT spend in EMEA Hospitality Business 2007-2012

Key Findings

Page 4: The IT spend in EMEA Hospitality Business 2007-2012

Average IT spend per property has dropped back to 2007 levels

137,000 €

2007 2012

(Average total IT spend per property for EAME)

141,000 €

Page 5: The IT spend in EMEA Hospitality Business 2007-2012

with Central & Eastern Europe being consistently low (around 400€ spend per room).

The average IT spend per room hit a 6-year low in 2012

731 €

556 €

Page 6: The IT spend in EMEA Hospitality Business 2007-2012

The shift towards Operating Expenditures has stabilized

CAPEX

OPEX70%

Page 7: The IT spend in EMEA Hospitality Business 2007-2012

(IT % of GOR. Source for other industries: Gartner, 2012)

The IT spend as a % of revenues remains lower than in other industries

3.6%

Hospitality

Other industries

1.4%

Page 8: The IT spend in EMEA Hospitality Business 2007-2012

8

(Allocation for IT internal staff. Source for other industries: Gartner, 2011)

The % of IT budget allocated to in-house staff is lower than other sectors

33%

IT Budget: % spent on in-house staff

Other industries Hospitality

33%27%

Page 9: The IT spend in EMEA Hospitality Business 2007-2012

9

# of in-house IT employees per hotel

0 FTE18%

1 FTE29%

2 to 3 FTEs

in 48% of ho-tels

> 3 FTEs5%

Page 11: The IT spend in EMEA Hospitality Business 2007-2012

Meet the authors

 

Prof. Dr. Hilary C Murphy, PhD, MCIM, MPhil, dip BITS, BA, teaches and researches at Ecole hôtelière de Lausanne in the strategic deployment of technology and e-marketing. Over the past 15 years she has researched and published articles on these subjects in trade magazines and in international academic journals and also delivered key papers at international conferences. More >

 

Alexandre Rappaz, MA in Economics, BA in Economics and Social Sciences, works as a research associate at

Ecole hôtelière de Lausanne.

Dr Hilary Murphy

Alexandre Rappaz

Page 12: The IT spend in EMEA Hospitality Business 2007-2012

About theEcole hôtelière de Lausanne

Ecole hôtelière de Lausanne (EHL) is the world’s first hospitality management school. It offers university-level studies to talented students who are aiming for top careers in the international hospitality industry.

Foundedin 1893

InternationalAccreditations (*)

(*) by Swiss federal government and by the New England Association of Schools and Colleges (Higher Education Commission).

25,000 alumni, mostly hospitality industry executives

2,000 students from90 countries

Page 13: The IT spend in EMEA Hospitality Business 2007-2012

About theResearch Department of EHL

It is the only university-level research center in Switzerland for applied hospitality research.

Sector & trends analysis

Conferencesand events

Scholars and industry professionals from 11 countries

Nurtures excellence in hospitality education

Innovative practices development