Rearranged: Online platforms have been replacing the industry's traditional business model

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. This has placed downwards pressure on commission rates and service fees, with consumers benefiting from having different travel arrangement choices. Major players, such as Flight Centre and Helloworld, have responded by introducing their own online platforms or acquiring existing firms...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
5.0%
Forecast Growth 18-23
Profit
Employment
26,772
Businesses
8,269

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 Investment Chapter

    The industry exhibits a moderate level of capital intensity. For every dollar invested in capital, an estimated $7.24 is spent as wages. The industry relies on labour to provide its services, particularly in traditional bricks-and-mortar retail outlets, where staff are needed to provide face-to-face arrangement of tour packages or facilitate telephone bookings. In addition, travellers often want to meet with travel agents to access their knowledge of travel destinations and packages. As such, capital investment in plant, property and equipment is relatively small and is generally focused on upgrading computer systems every few years.Capital intensity has increased over the past five years. Thi...purchase to read more.

    Additional Insights for the Travel Agency and Tour Arrangement Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Travel Agency and Tour Arrangement Services Industry 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 visitor nights
  • International travel to Australia

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

  • Industry Outlook
  • Profit and integration
  • Leisure and business markets
  • Industry participation
  • Technological advances
  • 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
  • Long Distance 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,
  • Table: Flight Centre Travel Group Limited - financial performance
  • Table: Helloworld Travel 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ground-Content
  • The land transport portion of an itinerary, as opposed to air travel.
  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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