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...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
2.5%
Forecast Growth 17-22
Profit
Employment
32,543
Businesses
8,472
What Our Customers Say

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 Products Chapter

    Packaged toursTour operators and wholesalers earn about 74.8% of their revenue by arranging, assembling and marketing packaged tours. The majority of this segment is accounted for by international tours, which are usually more expensive than domestic tours. In 2017, prepackaged international tours are expected to account for 51.5% of industry revenue, compared with 23.3% for domestic tours. Both domestic and international packages often include accommodation, meals, sightseeing, land transportation and other modes of transportation. Tour prices also include the services of a professional tour manager or guide who ensures that all aspects of the tour run smoothly and that the guests are satisfied with the services. The...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..

    shopping_cartPURCHASE OPTIONS

    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 CorporationThe 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
    Includes:
  • 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.
  • Why buy this report?

    IBISWorld’s Tour Operators Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear