New York, NY (PRWEB) February 03, 2014
The Tourism industry is on the road to recovery following a brief period of recession-induced despair. Industry revenue experienced an unprecedented decrease in 2009 due to declining consumer sentiment, rising unemployment and a big drop in the number of trips domestic and international travelers were taking in the United States. Unemployment surged in 2009, leading to a significant decline in consumer spending during the year. As people cut down on spending across the board, they became less likely to spend on nonessential travel. Falling business revenue and profit also led to far fewer business trips. However, as the recession passed and consumers began spending again, the industry's revival began. Starting in 2010, domestic and international travel began to recover, leading to strong growth in industry revenue. IBISWorld estimates that revenue will grow in the five years to 2014, boosted by growth in 2014.
The Tourism industry consists of a large range of businesses catering to travelers in four main categories: accommodation services; transportation; food services and drinking places; and recreation, entertainment and shopping. A majority of the Tourism industry's demand is derived from those traveling for leisure (i.e. for purposes such as a summer vacations, visiting friends or family and attending sporting events). Business travelers, or those undertaking general business travel and those attending conferences or events, make up the balance of the industry's demand.
IBISWorld estimates that the top four operators in the Tourism industry account for a minor share of total revenue in 2014, representing a low level of market share concentration. The domestic tourism industry will continue to evolve over the next five years in line with global tourism trends. Domestic travelers will continue to account for a significant majority of industry demand. However, according to IBISWorld Industry Analyst Andy Brennan, “international travelers are expected to account for a growing share of revenue, picking up some of the slack of the slower-growing domestic traveler market.” An influx of international visitors from developing economies in South and Central America and Asia is anticipated. “Rising household incomes in these regions and the propensity of the emerging middle classes to travel internationally are the main drivers of this trend,” says Brennan. Over the five-year period to 2019, industry revenue is forecast to significantly increase at an annualized rate.