Bon voyage: Rebounding travel rates will keep the industry soaring despite high competition

The Tour Operators industry has grown over the past five years, benefiting from improved disposable income levels and a strengthening global economy. As unemployment declined and consumer spending grew, both domestic and international trips taken by US residents increased, driving demand for tour packages assembled by industry operators. Additionally, inbound trips made by foreigners also grew strongly, as disposable income levels rose in countries throughout Asia, Latin America and Europe. While the industry has performed well, operators have experienced several challenges. The industry is highly susceptible to political instability, wars and viral outbreaks that can significantly dampen demand for tour packages in specific countries or regions...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Tour operators will offer more specialized or niche travel packages at premium prices
  • The variety of options offered by industry operators has expanded over the past five years
  • More Americans will seek unique experiences at exotic locations
  • Industry Report - Industry Analysis Chapter

    The Tour Operators industry has benefited from rising disposable income levels and a strengthening global economy over the past five years. Due to the discretionary nature of leisure travel, the frequency of travel and the amount consumers spend while traveling largely depend on disposable income. Operators cater to foreign and domestic clients, so as the domestic and global economies have grown, citizens’ disposable income levels and consumer spending figures have risen. With more money in their pockets, consumers have traveled at growing rates over the period. Con...purchase to read more.

    Additional Insights for the Tour Operators Industry

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

  • Access to multiskilled and flexible workforce
  • Experienced work force
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Inbound trips by non-US residents in the Tour Operators industry impact industry performance..

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    What's in this report

    What is the Tour Operators Industry?

    Businesses in this industry are engaged primarily in assembling and arranging tour packages. This industry also includes travel and wholesale tour operators, which means industry operators may include travel and accommodations within the package of their provided tours. However, businesses that primarily provide accommodations are not included in the industry and travel agencies that sell tour packages, but do not provide the actual tours themselves are not included in this industry.

    Industry Products
  • International packaged tours
  • Domestic packaged tours
  • International customized tours
  • Domestic customized tours
  • Reservation services
  • Reselling tours
  • Industry Activities
  • Arranging and assembling their own tour packages
  • Operating travel tours
  • Operating tours
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Inbound trips by non-US residents
  • Domestic trips by US residents
  • Consumer Confidence Index
  • Time spent on leisure and sports

  • Current Performance
  • Growth of domestic and international travel
  • Targeting niche consumer segments
  • Industry challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Travel growth
  • Premium travel
  • Table: Tour Operators Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Travel Agencies

  • Key Selling Industries
  • Amusement Parks
  • Historic Sites
  • Hotels & Motels
  • Museums
  • National & State Parks
  • Sightseeing Transportation
  • Ski & Snowboard Resorts

  • Products & Services
  • International packaged tours
  • Domestic packaged tours
  • International customized tours
  • Domestic customized tours
  • Reservation services
  • Other
  • Reselling tours
  • Chart: Tour Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals
  • Travel agencies
  • Businesses
  • Other
  • Chart: Major Market Segmentation for the Tour Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Tour Operators

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tour Operators Industry

  • Industry Globalization
    The Travel Corporation, The Mark Travel Corporation, Flight Centre Ltd.,
  • Table: The Travel Corporation - financial performance
  • Table: The Mark Travel Corporation - financial performance
  • Table: Flight Centre Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tour Operators 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 Tour Operators Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Domestic Trips (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Process Management
  • A process to administer the flow of data and information for a client.
  • Systems Management
  • Overseeing hardware and software used to automate any kind of data processing service or new processes.
  • Tour Package
  • A complete trip that can be paid in one lump sum inclusive of costs for fare, accommodation, meals, ground transportation, tour guides and taxes.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Tour Operators 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 Tour Operators:
    • 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 Tour Operators 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 Tour Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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