Travel Computer Reservation Systems Industry Report Now Available from IBISWorld

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After fighting declines, the Travel Computer Reservations System industry has begun its recovery, with revenue forecast to continue to grow in 2011 and 2012, according to IBISWorld, the nation’s largest publisher of industry research. IBISWorld forecasts revenue will increase to $3.1 billion through 2016. At the same time, however, the industry will also have to content with airlines and other travel operators developing new services and methods to avoid computer reservation systems (CRSs) and encourage consumers to book directly with the travel operator's website.

IBISWorld Market Research

IBISWorld Market Research

Despite the fact that this industry is forecast to experience growth on the back of growing travel demand, there are a few emerging trends that threaten this forecast

After fighting declines, the Travel Computer Reservations System industry has begun its recovery, with revenue forecast to continue to grow in 2011 and 2012, according to IBISWorld, the nation’s largest publisher of industry research. IBISWorld forecasts revenue will increase to $3.1 billion through 2016. At the same time, however, the industry will also have to content with airlines and other travel operators developing new services and methods to avoid computer reservation systems (CRSs) and encourage consumers to book directly with the travel operator's website.

After a disappointing couple of years in 2008 and 2009, when revenue in the Travel Computer Reservations System industry declined in response to the sudden drop in travel rates and travel demand, the Travel Computer Reservation System industry reestablished its previous upward trajectory, growing in 2010 and thus far in 2011. Despite strong prior growth, IBISWorld estimates revenue will fall over the five years to 2011, largely due to recession-related declines.

A number of factors have influenced the Travel Computer Reservations System 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. In 2009, inbound trips by non-US residents plummeted, with 5.2% fewer people visiting the United States than in 2008. Domestic travel also declined in the year, falling 5.1% from 2008. With fewer people taking trips, industry revenue dropped in line with booking rates (along with fees and commissions paid to the CRS industry). In 2010, however, inbound travel returned and grew 8.7%; it is forecast to grow 6.2% in 2011. Domestic travel increased 1.9% and 2.4%, respectively. As such, a greater number of consumers and business customers are taking trips and a percentage of that rise will likely flow into CRS companies' coffers.

According to IBISWorld analyst, Nima Samadi, from 2011 to 2016, industry revenue is forecast to increase at an average annualized rate of 4.1% to $3.1 billion. “Despite the fact that this industry is forecast to experience growth on the back of growing travel demand, there are a few emerging trends that threaten this forecast,” says Samadi. Airlines and other travel operators are trying to bypass global distribution systems (GDS), a type of CRS, to sidestep paying their fees and, instead, drive traffic to their own websites. The leverage airlines have has compelled GDS providers to lower their fees in the past and may also force them to in the near future, which could further reduce travel CRS industry revenue and profit margins.

For more information, download the full report from IBISWorld on the Travel Computer Reservations System industry

IBISWorld Industry Market Research Reports Contain:

About this Industry
Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets
Supply Chain
Products & Services
Major Markets

Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry

Major Companies

Operating Conditions
Capital Intensity

Key Statistics
Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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James Karklins
IBISWorld
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