This report provides an overview of practitioners’ opinions on seven external issues and 15 industry trends affecting the travel catering industry, drawing on data from a survey conducted at the ITCA Trade Show and Conference in Cologne, Germany March 7-9th, 2007. The respondents represent the four major sectors of the industry from around the world, allowing evaluation of their responses on both a sectoral and regional basis.

Major External Issues

• Hike in oil price is the issue of the overall highest concern within the industry (3.66), while human flu outbreak is the issue of the overall least concern (2.97).

• Corresponding to their level of concern, hike in oil price (3.65) is perceived to have the most impact on the industry’s business performance. The issue with the perceived least impact on the industry is climate change (2.83).

• Some similarities are identified for both climate change and increased passenger security measures across level of concern and impact. Airlines are not only more concerned about the two issues than suppliers, but also perceive more impact from these issues than food suppliers.

• Some significant differences are also identified.

Although there is a significant difference between food supplier and other sectors in the level of concern on terrorists’ attacks in major cities, there are no differences in terms of level of impact. Whereas a significant difference is identified between non-food suppliers and airlines on higher taxation on air travel, no difference is identified on their level of concern.

Major Industry Trends

• Increased competition in the airline industry (3.46) is the issue of the overall highest concern, whereas adoption of RFID for equipment tracking (2.24) is the trend of the overall least concern.

• Corresponding to their level of involvement, increased competition in the airline industry (3.62) is perceived to have the most impact on the industry’s daily operations, while the adoption of RFID for equipment tracking (2.4) is perceived as having the overall lowest impact.

• Some similarities across level of concern and impact are identified for five trends: increased competition in the airline industry, increased security management, outsourcing of food production, increased branded food products on tray sets and increased concern on food safety and health.

• Significant differences are identified. Four trends show significant differences in the level of concern, but not on the level of impacts: outsourcing of catering logistics function, increase use of internet based IT, increase in single seat class airlines, and reduction in packaging.

• On the other hand, significant differences were noted on the perceived level o impact of the increased role of distributors, but not on the level of concern.