Tour Operators in the UK Industry Market Research Report Now Updated by IBISWorld

The past few years have been challenging for the Tour Operators industry, which faced difficulties from the global financial crisis and falls in international tourist arrivals, UK tourist departures and domestic consumer confidence. With significant economic uncertainty, fewer UK residents booked tours overseas, while the number of foreign tourists booking UK tours also fell. A key threat to the industry is the increasing tendency for people to plan, organise and book their travels using the internet, thereby bypassing traditional tour operators and denying them sales. Industry revenue over the five years through 2012-13 is estimated to have fallen by an average of 1.3% per year to £13 billion. The overall decline in revenue is mainly attributable to a large contraction during 2008-09, when revenue fell by about one-fifth. However, the industry received a boost in 2012-13 from tourism activity generated by the London 2012 Olympic and Paralympic Games, causing revenue to rise 7.8%. In 2013-14, the industry is anticipated to experience a post-Olympic slump in revenue. In the longer term, revenue will be supported by growth in the population aged 65 and older, as this group are greater users of tour operator services. Industry revenue is forecast to increase marginally over the five years through 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Tour Operators industry.

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IBISWorld industry market research
The tourism boost from the Olympic Games has lifted industry revenue in 2012-13

London, United Kingdom (PRWEB) November 22, 2012

The past few years have been challenging for the Tour Operators industry, which faced difficulties from the global financial crisis and falls in international tourist arrivals, UK tourist departures and domestic consumer confidence. With significant economic uncertainty, fewer UK residents booked tours overseas, while the number of foreign tourists booking UK tours also fell. According to IBISWorld industry analyst Angela Kidson, “a key threat to the industry is the increasing tendency for people to plan, organise and book their travels using the internet, thereby bypassing traditional tour operators and denying them sales”.
Industry revenue over the five years through 2012-13 is estimated to have fallen by an average of 1.3% per year to £13 billion. The overall decline in revenue is mainly attributable to a large contraction during 2008-09, when revenue fell by about one-fifth. However adds Kidson, “the industry received a boost in 2012-13 from tourism activity generated by the London 2012 Olympic and Paralympic Games, causing revenue to rise 7.8%”. This is also pushing up slim profit margins for the year.
In 2013-14, the industry is anticipated to experience a post-Olympic slump in revenue. Tour operators will be faced with the challenge of readjusting services and capacity to more normal conditions. In the longer term, revenue will be supported by growth in the population aged 65 and older, as this group are greater users of tour operator services. Industry revenue is forecast to increase marginally over the five years through 2017-18.
The Tour Operators industry comprises about 1,750 different enterprises, varying from sole operators in niche locations or markets, to larger companies with broader product offerings and a larger scale. Market share concentration in the industry is quite low, which is partly due to the scattered geography and wide variety of different tour types and audiences. Major companies include The Travel Corporation, Thomas Cook Group and TUI Travel.

For more information on the Tour Operators industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

The Tour Operators industry arranges, assembles and conducts tours in the UK and in other countries around the world. These tours can be sold directly by the operators or via travel agencies. Tours can include a combination of transportation, accommodation, food and visits to events or locations.

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

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. 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 London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.


Contact

  • Gavin Smith
    IBISWorld
    310 866 5042
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