Bon voyage: The industry will increasingly rely on travelers flying in from emerging economies

Over the five years to 2018, the Tourism industry has experienced relatively steady growth. Despite increasing consumer sentiment, declining unemployment and an increase in the number of trips domestic and international travelers were taking in the United States, revenue growth has been moderately volatile and sluggish amid heightened competition and unstable commodity markets. Nevertheless, consumer spending continued to increase due to rising disposable incomes and positive consumer sentiment, benefiting industry operators. Over the five years to 2023, the industry is forecast to experience greater growth and steadier revenue gains...purchase to read more.

Industry Statistics & Market Size
Revenue
$958bn
Annual Growth 13-18
0.7%
Forecast Growth 18-23
Profit
Employment
5.5m
Businesses
268,432

Industry Threats & Opportunities

  • The industry will continue to evolve over the next five years, in line with global tourism trends
  • The industry contends with stiff competition for a share of total global international travel
  • The number of inbound visits to the United States is forecast to surge
  • Industry Report - Industry Investment Chapter

    The capital intensity experienced by operators in the Tourism industry is determined by the ratio of labor to capital costs. In the absence of official data, depreciation to wage costs are used as proxies. Using the data from the Cost Structure Benchmarks section, IBISWorld estimates that for every dollar operators spend on wages in 2018, the average industry operator will outlay $0.32 on the use and replacement of buildings and equipment, resulting in the industry experienced a moderate-to-high level of capital intensity. While the Tourism industry is labor intensive overall, some operators, such as the airline companies, have a need for higher-cost capital equipment. How...purchase to read more.

    Additional Insights for the Tourism Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tourism Industry are

  • Ability to quickly adopt new technology
  • Proximity to key markets
  • Access to a multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Domestic trips by US residents and Consumer Confidence Index in the Tourism industry impact industry performance..

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    What's in this report

    What is the Tourism Industry?

    Tourism is defined as visitors spending during travel primarily for business, convention or conference travel, government business, and the more familiar tourism for leisure, vacation or to visit friends and relatives. Major industries that benefit from tourism expenditure include domestic and international air transportation, accommodation services, food services, drinking places, automotive rental and travel agencies.

    Industry Products
  • Accommodations
  • Transportation
  • Food service and drinking places
  • Recreation and entertainment
  • Industry Activities
  • Accommodation services
  • Domestic airline operation
  • International airline operation
  • Food services and drinking place services
  • Automotive rental
  • Travel agent and tour arrangement services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic trips by US residents
  • Consumer Confidence Index
  • Inbound trips by non-US residents
  • International trips by US residents
  • Consumer spending

  • Current Performance
  • Travel trends
  • Sensitivities
  • Increasing competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Travel trends
  • Industry landscape
  • Table: Tourism Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tourism Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Advertising Agencies
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Caterers
  • Construction
  • Dry Cleaners
  • Fish & Seafood Wholesaling
  • Fruit & Vegetable Wholesaling
  • Retail Trade
  • Wine & Spirits Wholesaling

  • Products & Services
  • Transportation
  • Recreation and entertainment
  • Accommodations
  • Food service and drinking places
  • Other
  • Chart: Tourism Industry Products and Services Segmentation

  • Demand Determinants
  • Leisure travel
  • Business travel
  • International tourism

  • Major Markets
  • Domestic leisure travelers
  • International visitors
  • Business travelers
  • Meeting, events and incentive travelers
  • Chart: Major Market Segmentation for the Tourism Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Tourism

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tourism Industry

  • Industry Globalization
    Delta Air Lines Inc., American Airlines Group Inc., Marriott International, Hilton Worldwide Holdings Inc., The Walt Disney Company,
  • Table: Delta Air Lines Inc. - financial performance
  • Table: American Airlines Group Inc. - financial performance
  • Table: Marriott International - financial performance
  • Table: Hilton Worldwide Holdings Inc. - financial performance
  • Table: The Walt Disney Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tourism 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 Tourism Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Domestic Trips (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Brick And Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • Global Distribution System
  • A computerized system for agents that comprises details on international and domestic travel product.
  • Revenue Per Available Room (Revpar)
  • A measurement that is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate.
  • Star Alliance Network
  • The world's first and largest airline alliance, with agreements between participating airlines to cooperate on a substantial level.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Tourism can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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 Tourism:
    • 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 Tourism 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 Tourism, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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