Seeing the sites: The rise of metasearch websites has reduced industry profit margins

The Travel Agency and Tour Arrangement Services industry comprises many different players along the travel supply chain. Travel consolidators, shopfront travel agencies, online travel agencies, travel management companies and inbound tour operators (ITOs) sell travel packages to consumers, businesses and government. ITOs package New Zealand tour products to onsell to overseas travel agencies. Travel consolidators act as wholesalers, selling travel products to retail travel agencies. Online and shopfront travel agencies sell leisure travel products to consumers, which typically include transport, accommodation and other services.Industry revenue is expected to grow at an annualised 3.5% over the five years through 2017-18, to reach $916.2 million...read more.

Industry Statistics & Market Size
Revenue
$916m
Annual Growth 13-18
3.5%
Forecast Growth 18-23
Profit
Employment
7,003
Businesses
1,800

Industry Threats & Opportunities

  • Increased competition from metasearch websites has contributed to falling profit margins
  • Competition from metasearch websites has contributed to falling industry profit margins
  • Demand for New Zealand tourism is anticipated to remain strong over the next five years
  • Industry Report - Starting a New Business Chapter

    The industry has low entry barriers. Entry to the industry has become easier for prospective firms over the past five years, due to the rise of online travel agencies. Regulation in the industry is light. Travel agencies do not require a government licence to sell travel packages. Many tour operators are active in the industry, offering various tours including cruises, adventure activities or other niche interest experiences for travellers. Due to the diverse and increasing market of inbound visitors to New Zealand, plenty of opportunities exist for agencies or tour operators to target niche markets. These trends contribute to the industry’s low entry barriers...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:

  • Aggressive marketing/franchising - given the high level of competition
  • Having a wide and expanding product range
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and International travel to New Zealand 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 in New Zealand Industry?

    Industry players primarily assist individual customers and businesses with booking travel, which typically includes accommodation, transport and tour services. The industry also includes tour wholesalers and operators, and both online and bricks-and-mortar travel agencies.

    Industry Products
  • Leisure travel arrangement services
  • Corporate and government travel arrangement services
  • Inbound tour arrangement services
  • Travel consolidating services
  • Industry Activities
  • Tour retailing
  • Tour wholesaling
  • Travel consolidating
  • Travel agency operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • International travel to New Zealand
  • Real household discretionary income
  • Total visitor days

  • Current Performance
  • Industry structure
  • Inbound tour operators
  • Industry participation
  • Online and shopfront travel agencies
  • Chart: Revenue Growth

  • Industry Outlook
  • Leisure tourism
  • Structural change
  • Industry participation
  • Corporate and government market
  • 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 in New Zealand

  • Key Selling Industries
  • Airlines in New Zealand
  • Hotels and Resorts in New Zealand
  • Scenic and Sightseeing Transport in New Zealand
  • Water Passenger Transport in New Zealand

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

  • Demand Determinants
  • Macro-economic factors
  • Global trends

  • Major Markets
  • International tourists
  • Households
  • Businesses
  • Government
  • 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 (NZ) Limited, Helloworld Travel Services (NZ) Limited,
  • Table: Flight Centre (NZ) Limited - financial performance
  • Table: Helloworld Travel Services (NZ) 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
    Total Transaction Value
  • The value of all travel packages sold by a travel agency, which is equivalent to the amount paid by consumers. Travel agencies typically derive revenue from a certain percentage of this value.
  • Travel Consolidators
  • A wholesaler that onsells accommodation, transport or tour services to retail travel agents.
  • Travel Service Providers
  • A downstream business that provides a service directly to consumers, such as accommodation, transport or tours.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Travel Agency and Tour Arrangement Services in New Zealand 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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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