Consumers and businesses have resumed taking trips and using travel agencies' services
Los Angeles, CA (PRWEB) October 15, 2012
The Global Travel Agency Services industry began its recovery in 2010 after a disappointing 2009, when revenue declined 11.3%. Despite the losses incurred, IBISWorld estimates revenue will grow at an average annual rate of 4.3% over the five years to 2012, with revenue expected to grow 11.2% to $131.5 billion in 2012 alone, IBISWorld industry analyst Nima Samadi says.
With the onset of the global recession, all forms of travel expenditures fell as both consumers and businesses became more concerned about their finances and cut back on luxuries. In 2009, as the global recession deepened and unemployment rose, a decline in the domestic travel rate and a 3.8% fall in international tourism arrivals (according to the United Nations World Tourism Organization) cut into demand for the Global Travel Agency Services industry. Nevertheless, in 2010 and 2011, international tourism arrivals rebounded 6.6% and 4.6%, respectively. In 2012, domestic travel and international arrivals are anticipated to continue rising, with international arrivals forecast to grow 3.8% for the year. As such, a greater number of consumers and business customers are taking trips and using travel agencies' services, Samadi says.
Many emerging economies are rapidly becoming major sources of international travel. For example, in 2011, China spent 32.0% more on travel than it did in the prior year, and China is about to surpass the US as the second-largest source of international travel. Furthermore, international tourist arrivals in emerging economy destinations are growing at double the pace of developed economies. This will result in emerging economies surpassing developed economies by 2015. In order to keep up with the aggressive rise in travel rates in these emerging regions, more travel agencies will be established and more travel packages will be designed for these destinations, which will increase the proportion of industry revenue generated from these regions and drive industry revenue growth as a whole. Over the five years to 2017, revenue is projected to increase. In addition, the era of storefront travel agencies is entering a long-term decline and being replaced by online services, which offer a relatively high-profit, low-cost way to handle transactions. This segment of the industry has grown significantly and will likely continue to display strong growth during the next five years. Market concentration for this industry is medium, with the top four players accounting for more than half of the industry’s revenue. For more information, visit IBISWorld’s Global Travel Agency Services industry report page.
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IBISWorld industry Report Key Topics
This industry comprises businesses engaged in tour wholesaling (i.e. developing tour packages that include airline and accommodations to be sold through travel agents or online) or acting as retail travel agents to the general public and commercial clients. It includes online travel sales, tour information, booking and reservations, and payment systems used by chain and franchised travel and tour agents.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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