Taking off: Increasing demand for travel services has boosted industry revenue

The Travel Agency and Tour Arrangement Services industry has undergone significant structural changes over the past five years. The traditional bricks-and-mortar travel agency revenue model, with high commission rates and service fees, has been challenged by the rapid uptake of online booking platforms. Online-only booking facilities such as Webjet, Expedia and Booking.com have become more popular over the past five years, placing downward pressure on commission rates and service fees. Major players, such as Flight Centre and Helloworld Travel, have responded by introducing their own online platforms or acquiring existing online firms. Other online platforms, such as metasearch websites, have also been a strong source of competition for industry players...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 14-19
3.1%
Forecast Growth 19-24
Profit
Employment
42,118
Businesses
6,951

Industry Threats & Opportunities

  • Inbound and outbound tourism numbers have risen steadily, supporting revenue growth
  • Competition from metasearch websites has intensified, negatively affecting the industry
  • Demand for tour organisation from domestic travellers is anticipated to increase
  • Industry Report - Industry Key Buyers Chapter

    The Travel Agency and Tour Arrangement Services industry displays low market share concentration, with the top four operators estimated to account for under 40% of industry revenue in 2018-19. Market share concentration has increased over the past five years, although trends have varied among operators. Mostly, bricks-and-mortar travel agencies have been losing market share to online travel agencies and travel consolidators. Overall, the significant market share gains reported by Booking.com (Australia) and Expedia Group have more than offset the losses recorded by more established industry operators, Flight Centre and Helloworld. Among large brand name travel agencies, consolidation has been prevalent. Bot...purchase to read more.

    Additional Insights for the Travel Agency and Tour Arrangement Services Industry

    IBISWorld has determined the most important Key Success Factors for the Travel Agency and Tour Arrangement Services are:

  • Access to the latest available and most efficient technology and techniques
  • Experienced work force
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as International travel by Australians and Consumer sentiment index in the Travel Agency and Tour Arrangement Services industry impact industry performance..

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    What's in this report

    What is the Travel Agency and Tour Arrangement Services Industry?

    Industry firms primarily provide travel information, reservation and booking services for transport (e.g. planes, ships and rental cars), accommodation (e.g. hotels, motels and serviced apartments) and tourist attractions (e.g. theme and amusement parks and museums) to individuals and business travellers. The industry also includes internet travel-booking services.

    Industry Products
  • Leisure travel services
  • Travel consolidating services
  • Inbound tour services
  • Business and government travel services
  • Industry Activities
  • Booking service provision
  • Arranging and assembling tours
  • Ticket selling
  • Tour retailing
  • Tour wholesaling
  • Travel agency operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International travel by Australians
  • Consumer sentiment index
  • Real household discretionary income
  • Total tourist visitor nights
  • International travel to Australia

  • Current Performance
  • Industry structure
  • Online migration
  • Travel market trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and integration
  • Leisure and business markets
  • Industry participation
  • Opportunities
  • Table: Travel Agency and Tour Arrangement Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Travel Agency and Tour Arrangement Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Caravan Parks and Camping Grounds
  • Domestic Airlines
  • Holiday Houses, Flats and Hostels
  • Hotels and Resorts
  • International Airlines
  • Interurban and Rural Bus Transport
  • Motels
  • Urban Bus and Tramway Transport
  • Water Passenger Transport

  • Products & Services
  • Leisure travel services
  • Business and government travel services
  • Travel consolidating services
  • Inbound tour services
  • Chart: Travel Agency and Tour Arrangement Services Industry Products and Services Segmentation

  • Demand Determinants
  • Leisure
  • Business
  • Supply side conditions

  • Major Markets
  • Australians travelling internationally
  • Australian domestic leisure travellers
  • Australian business and government travellers
  • International visitors
  • Chart: Major Market Segmentation for the Travel Agency and Tour Arrangement Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Travel Agency and Tour Arrangement Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Travel Agency and Tour Arrangement Services Industry

  • Industry Globalization
    Flight Centre Travel Group Limited, Helloworld Travel Limited, Expedia Australia Pty Limited, Booking.com (Australia) Pty Limited,
  • Table: Flight Centre Travel Group Limited - financial performance
  • Table: Helloworld Travel Limited - financial performance
  • Table: Expedia Australia Pty Limited - financial performance
  • Table: Booking.com (Australia) Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Travel Agency and Tour Arrangement Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Travel Agency and Tour Arrangement Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Inbound Tour Operator (Ito)
  • ITOs are firms that coordinate tour arrangements for overseas wholesalers or travel agents.
  • Metasearch Websites
  • These sites aggregate online travel products, which then connect consumers directly to the website of a supplier.
  • Online Travel Agency (Ota)
  • An online-only firm that provides tour, accommodation and travel packages to consumers.
  • Shopfront
  • Traditional bricks-and-mortar shop that sells travel plans with a high level of personal agent input.
  • Total Transaction Value (Ttv)
  • Value of the underlying travel services sold. Agents generate a commission from the TTV.
  • Travel Consolidators
  • Firms that wholesale transport, tour or accommodation services to travel agents.
  • Travel Service Providers
  • Firms that provide an accommodation, transport or tour service.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Travel Agency and Tour Arrangement Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Travel Agency and Tour Arrangement Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Travel Agency and Tour Arrangement Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Travel Agency and Tour Arrangement Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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