Wholesale Travel Agencies in Australia Industry Market Research Report Now Available from IBISWorld

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Disruptive changes in the structure of the Wholesale Travel Agencies industry have given rise to unprecedented competition from upstream and downstream markets. For this reason, industry research firm IBISWorld has added a report on Wholesale Travel Agencies in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Revenue is yet to recover from the effects of the financial crisis.

The Wholesale Travel Agencies industry in Australia has faced periods of extreme volatility over the five years through 2012-13. According to IBISWorld industry analyst Ryan Lin, “industry revenue has faced pressures from disruptive changes in the industry structure, giving rise to unprecedented competition from upstream and downstream markets”. The industry has also struggled to recover from the descent of industry revenue in 2008-09, where revenue fell by more than 30% as result of the global financial crisis.

Wholesalers and ticket consolidators have been significantly more exposed to the proliferation of technology within the travel industry, being the non-retail travel industry wedged between suppliers and retailers. Technology has enabled easier researching of potential travel destinations to package, as well as increase accessibility to flight information. However, competition remains tough, weighing heavily against industry revenue and profitability. As a result, over the past five-year period, industry revenue has fallen at an annualised rate of 1.9% to total $361.6 million. IBISWorld expects that industry revenue has recovered slightly in the past few years due to the increased propensity to travel, especially to tourist destinations. In 2012-13, revenue is forecast to grow 6.3% as wholesale travel packages increase in popularity with foreign and domestic travellers.

The Wholesale Travel Agencies industry has a high share of concentration that reflects the barriers to entry. The industry’s two major players are Flight Centre Limited and Jetset Travelworld Ltd.

The industry is forecast to continue its struggle over the coming five-year period. “Foreign travel groups are expected to stabilise in number despite the Australian dollar maintaining parity, especially from Asia”, says Lin. “However, international tourists in Australia from the Americas and Europe are expected to increase slightly as their respective economies begin to recover”.

Competition from all sources is expected to persist, especially as new avenues of operations from online operations bring new competitors. Despite this, technology will still be worthwhile for industry operators, giving them better scope to research and package industry products and connect with upstream and downstream markets. However, the continual changes in structure of the industry will give industries such as supermarkets a potential chance at entering the industry, having already become a player in the travel insurance industry. This new source of competition will further eat away at revenue and margins.

For more information, visit IBISWorld’s Wholesale Travel Agencies report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld Industry Report Key Topics

Companies in this industry package accommodation, transport and leisure services from travel service suppliers such as hotels and airlines. Industry wholesalers earn commission on each type of package they resell to agents.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
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 every Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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