Emerging economies will surpass developed economies in international tourist visits.
Los Angeles, CA (PRWEB) July 11, 2013
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 4.4% over the five years to 2013, with revenue expected to grow 8.7% to $145.3 billion in 2013. According to IBISWorld Industry analyst Nima Samadi, “with the onset of the global recession, all forms of travel expenditure 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 domestic travel and international tourism arrivals cut into demand for travel agencies' services. Nevertheless, from 2010 to 2012 international tourism arrivals rebounded. In 2013, domestic travel and international arrivals are anticipated to continue rising. As such, a greater number of consumers and business customers are taking trips and using travel agencies' services.
Many emerging economies are rapidly becoming major sources of international travel. For example, 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”, says Samadi. 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 2018, 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 share concentration measures the extent to which the top four players dominate an industry. The Global Travel Agency Services industry is expected to have a medium level of market share concentration in 2013. Industry concentration is increasing due to the merger of large players on a global basis, as revenue growth slows and travelers move to the internet for bookings directly with travel operators. Some further industry concentration is expected to occur in the next five years, due largely to the shift towards direct internet bookings by travelers. The largest players in the industry are Carlson, American Express, Priceline, TUI AG and Thomas Cook.
For more information, visit IBISWorld’s Global Travel Agency Services industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
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
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 nearly every US and Global 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.