Industry revenue volatility high after global financial crisis
Melbourne, Australia (PRWEB) May 18, 2013
Over the past five years, the Corporate Travel Service industry has faced extreme turbulence because of the global financial crisis. Revenue declined in the earlier half of the five-year period. Structural and business-related changes have given industry players a run for their money. According to IBISWorld industry analyst Ryan Lin, “upstream markets have begun competing with corporate travel service providers through increased distribution and ease of access.” This particular trend has been made possible by the proliferation of technology, especially the internet, in the industry.
The industry's market share concentration is low. The four major players in the Corporate Travel Services industry are Corporate Travel Management Limited, Carlson Wagonlit Australia Pty Limited, Jetset Travelworld Ltd and Hogg Robinson Australia Pty Ltd.
In the five years through 2012-13, industry revenue is expected to have fallen at an annualised rate of 12.1% to total $611.3 million. This large rate of decline is predominantly due to the revenue nosedive caused by the global financial crisis in 2007-08, which led to a fall of 49.7% in industry revenue during 2008-09. The industry has since been on the climb, albeit still characterised by a high level of volatility. Revenue is expected to grow by 6.6% in 2012-13 as governments continue to demand industry products and business confidence returns.
“The industry is expected to fare better over the next five years, gaining a welcome boost from the overall increase in business confidence and the persistency of economic factors,” says Lin. “The continued demand for Australian resources and the returning favourability of the Australian terms of trade will also benefit the industry.” The Australian dollar is expected to maintain parity, giving much strength to the impoverished exports businesses and other trade-orientated organisations. Structural changes caused by technological disruptions are expected to limit the industry's recovery. Competition from increasing distribution channels by upstream markets such as international and domestic airlines is also likely to constrain growth.
For more information, visit IBISWorld’s Corporate Travel Services report in Australia industry page.
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IBISWorld Industry Report Key Topics
Companies in this industry cater for corporate clients travelling for business purposes. These agencies package accommodation, transport and leisure services for corporate clients, and work for commission.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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