Flying high: Industry revenue soars on the back of increasing business tourist nights

The Corporate Travel Services industry has displayed solid growth over the past five years. An upward trend in business tourist nights and steady growth in government spending have underpinned the industry’s performance over the period. However, operators have faced challenges arising from structural and technological changes. Industry revenue is expected to rise at an annualised 2.6% over the five years through 2017-18, to $1.4 billion. This includes anticipated growth of 2.9% in the current year, due to a rise in business tourist nights and positive business confidence.The proliferation of technology, particularly online sales platforms, has enabled industry firms to increase automation and trim their operating more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Technology has enabled industry firms to increase automation and trim their operating costs
  • Falling airfares have contributed to more business travel, which has supported industry revenue
  • The industry will be subject to ongoing structural change, which will intensify competition
  • Industry Report - Industry SWOT Analysis Chapter

    The Corporate Travel Services industry is in the mature phase of its life cycle. Demand for industry services is driven by spending by businesses and governments, which is underpinned by the growth of the general economy and trends in business confidence. However, the industry’s performance is also influenced by technological change in the delivery of transport services.Industry value added, a measure of the industry’s contribution to the overall economy, is forecast to grow at an annualised 1.3% over the 10 years through 2022-23. This is slower than the projected growth in Australia’s real GDP by an annualised 2.5% over the same period, a typical characteristic of a mature industry...purchase to read more.

    Additional Insights for the Corporate Travel Services Industry

    IBISWorld has determined the most important Key Success Factors for the Corporate Travel Services are:

  • Being part of a group-buying, promotion and marketing scheme
  • Having a loyal customer base
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Business tourist visitor nights and Business confidence index in the Corporate Travel Services industry impact industry performance..

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    What's in this report

    What is the Corporate Travel Services Industry?

    Industry firms cater for business and government clients travelling for business purposes. These agencies package accommodation, transport and leisure services for corporate clients, and work for commission.

    Industry Products
  • Airline bookings
  • Other transport bookings
  • Accommodation bookings
  • Other services
  • Industry Activities
  • Booking service provision
  • Ticket selling
  • 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
  • Business tourist visitor nights
  • Business confidence index
  • Government consumption expenditure
  • Trade-weighted index

  • Current Performance
  • Major markets
  • Government and international travellers
  • Profitability
  • Industry change and competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand outlook
  • Profitability
  • Table: Corporate Travel Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Corporate Travel Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services

  • Key Selling Industries
  • Domestic Airlines
  • Hotels and Resorts
  • International Airlines
  • Motels
  • Scenic and Sightseeing Transport

  • Products & Services
  • Accommodation bookings
  • Airline bookings
  • Other transport bookings
  • Other services
  • Chart: Corporate Travel Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic business travellers
  • Outbound international business travellers
  • Inbound international business travellers
  • Chart: Major Market Segmentation for the Corporate Travel 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 Corporate Travel Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Corporate Travel Services Industry

  • Industry Globalization
    Flight Centre Travel Group Limited, Corporate Travel Management Limited,
  • Table: Flight Centre Travel Group Limited - financial performance
  • Table: Corporate Travel Management Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Corporate Travel 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 Corporate Travel Services Industry
  • 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
  • Commission and other revenue retained by travel agents on bookings.
  • Suppliers
  • Providers of travel products and services. These include airlines, hotels and tour group operators.
  • Woag
  • WoAG or Whole-of-Australian-Government Travel Suppliers are preferred suppliers of travel services to the Australian Government.
  • What Our Customers Say

    Why buy this report?

    The Corporate Travel Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Corporate Travel 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 Corporate Travel 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 Corporate Travel Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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