MORE THAN 80% OF TECH LEADERS PREDICT ECONOMIC DOWNTURN, YET ARE OPTIMISTIC ABOUT THEIR BUSINESSES
January 16 2020 - 6:00AM
New trivago study of global C-suite and founder sentiment
indicates EU firms are growing more competitive in tech and
are increasingly attracting top global talent
DÜSSELDORF, GERMANY – January 16, 2020 — The majority of leaders
at global technology companies in the U.S. and Europe foresee
economic trouble in the next two years, yet they remain confident
about their own business success. In addition, most tech leaders
view Europe as a growing force in the industry that is competing
more effectively and attracting a growing pool of top talent from
around the world. This is according to a new survey of more than
1,000 C-suite executives and founders of tech firms in the U.S.,
U.K., Germany and France commissioned by trivago, a global leader
in accommodation search.
The research is designed to take the pulse of tech leaders on
critical issues ranging from the global economy and the startup
scene to business risks and talent. Key findings indicate that
European tech firms are becoming more competitive, attracting the
best and brightest global talent and offer a more diverse working
environment.
At least 80% of those surveyed expect a recession or prolonged
downturn within the next two years. Eighty-one percent of
respondents feel these problems are likely to occur in the U.S. Yet
leaders are enthusiastic about their businesses. Nearly two-thirds
(61%) are very confident about where their business sits in their
industry.
Increased Tech Competition from Europe The
survey found that Europe’s technology sector is perceived as a
growing economic force with a positive long-term outlook and an
edge in the “war for talent.” Fifty-nine percent of respondents
“definitely” agree that European tech startups have increased
competition against the U.S. over the past five years. This
momentum is unlikely to slow anytime soon. When asked what region
has a stronger long-term growth trajectory, more respondents cited
Europe (44%) than the U.S. (41%). Meanwhile, 56% feel that European
companies are “definitely” challenging U.S. firms for the best and
brightest people.
“It is interesting to see where global technology leaders feel
competition is coming from,” said Axel Hefer, CEO, trivago. “One of
the keys to the success story of trivago is our diverse workforce
made up of talents from across the globe and our ability to attract
talent globally. When thinking about what drives success in a
company, we believe having different mindsets, experiences,
perspectives and cultures are key factors. This is why it’s not so
surprising to see that European tech startups are bringing in more
top talent, increasing the competition against the U.S. based
companies, while they see their businesses thrive and grow in
global influence.”
The War for TalentBoth the vision and business
models of European tech startups may be giving them advantages over
their U.S. counterparts when it comes to recruiting and growth, the
trivago survey suggests. Technology leaders feel that European
companies are superior to U.S. firms when it comes to these
factors:
- Having a greater focus on brand (97% agree)
- Benefiting from higher online marketing and sales activity in
the region (93% agree)
- Focusing on international markets more quickly (85% agree)
- Spending more time on development before going to market (80%
agree)
Diversity may be another key benefit for EU companies; 84% of
leaders feel the EU’s working culture is attractive to global
talent. However, a key advantage for U.S. firms is that they are
less risk averse. Nearly nine in 10 leaders feel EU startups are
more cautious than U.S. startups.
Global Risk FactorsWhen asked about growth
risks, tech leaders surveyed cited these top concerns: lack of
talent (52%), data security (52%) and government regulation (51%).
In the U.S., regulation is clearly the biggest risk. Nearly
three-quarters (72%) of tech leaders feel regulations have made it
more difficult to access funding over the past five years. In the
U.K. and France, lack of talent is the most serious concern. In
Germany, both regulation and data security lead the list of
risks.
“The technology industry is critical to the economies of both
the U.S. and the E.U. in driving innovation, jobs and growth,” said
trivago’s Hefer. “It’s important to us that we keep a pulse on the
industry as it changes at such a rapid pace. The findings reflect
many of the pain-points and concerns we faced starting out and
becoming a fast-growing global tech company, and currently face
today. For us, it is unsurprising that concerns over the wider
economy are high in the minds of tech leaders on both sides of the
Atlantic. However, while the wider economy is still a concern, we
are enthusiastic that a majority of the leaders we surveyed have
great confidence in the prospects of their own companies and of the
overall industry.”
/// ENDS ///
About this research:This survey was conducted
by trivago in conjunction Censuswide, who surveyed 1,009 C-level
executives and founders from technology companies in the U.K.,
U.S., France and Germany. Respondents’ organizations ranged from
fewer than 10 employees to over 2,000. Fieldwork was carried out
between 9th October to the 29th October. Censuswide abide by and
employ members of the Market Research Society. All survey
panellists are double opted in (with an opt-in and validation
process) in line with MRS and ESOMAR standards. About
trivago trivago is a leading global hotel search platform
focused on reshaping the way travelers search for and compare
hotels and alternative accommodations. Incorporated in 2005 in
Düsseldorf, Germany, the platform allows travelers to make
informed decisions by personalizing their hotel search and
providing them access to a deep supply of hotel information and
prices. trivago enables its advertisers to grow their businesses by
providing access to a broad audience of travelers via its websites
and apps. As of June 30, 2019, trivago has established
55 localized platforms connected to over 3.5million hotels and
alternative accommodations, in over 190 countries. For more
information, trivago’s earnings releases and other financial
information are available at ir.trivago.com or visit
company.trivago.com/press for all corporate news.
Contacts: Press Contact: Stephanie
Lowenthal, stephanie.lowenthal@trivago.com
Investor Relations: ir@trivago.com
Forward looking statements
This press release contains certain forward-looking statements.
Words, and variations of words such as "believe," "expect," "plan,"
"continue," "will," "should," and similar expressions are intended
to identify our forward-looking statements. These forward-looking
statements involve risks and uncertainties, many of which are
beyond our control, and important factors that could cause actual
events and results to differ materially from those in the
forward-looking statements. For additional information factors that
could affect our forward-looking statements, see our risk factors,
as they may be amended from time to time, set forth in our public
filings with the Securities and Exchange Commission. We
disclaim and do not undertake any obligation to update or revise
any forward-looking statement in this press release, except as
required by applicable law or regulation.
As used herein, references to "we", "us", the "company", or
"trivago", or similar terms shall mean trivago N.V. and, as the
context requires, its subsidiaries
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