Prime Advantage Advisory

Prime Advantage Advisory

Travel and Transportation

Travel and TransportationTravel and Transportation – Sector Overview

The travel and transportation industries form the backbone of the UK economy, enabling the effective movement of people and goods around the country and the world. Airlines, airports, shipping companies, Passenger Transport Executives (PTEs), rail and bus companies and logistics service providers are all part of the process that keeps people and products on the move.

Companies across these sectors are constantly exploring new ways to compete and focusing on digital technologies to create value in new ways as well as developing diverse and dynamic Partnerships with others aligned to their interests.

From publicly-funded travel and transportation and private rail franchises through to hauliers and logistics providers, the opportunity to do business at home and across the world is available. Public and regulated contracts offer revenue security but low margins whilst work in the private sector can be lucrative but fluid.

Currently the industry is facing geopolitical uncertainty which is disrupting traditional import/export markets on the international level and causing problems for operational business: problems across the Middle East and piracy in the Indian Ocean have caused problems for UK firms operating internationally. Economic slowdown in the world’s biggest exporter, China, will have an unpalatable effect on revenue and profitability for transportation companies also.

In the travel and transportation arena, disruptive technologies are putting traditional business models to the test. The rise of Uber, the taxi app for mobile devices, is streamlining the consumer purchasing process and Uber and its drivers are reaping the rewards whilst traditional taxi firms are witnessing reduced demand.

Opportunities for growth across the two industries are numerous and include capitalising on the resurgent growth of manufacturing in the UK leading to a need for cargo transport on a national and international stage. The same applies to growth across retail, where online retailers and their shoppers are increasingly demanding quick and efficient delivery services, the backbone of which comes down to effective logistics providers.

Travel & Transportation Sector Expert

Brian Farrugia - Managing Partner and : Travel & Transportation, Automotive, Service Industry and The Collaborative EconomyBrian Farrugia

To find out more about Brian’s views and insights on the Travel & Transportation Sector read his blog.