Smooth sailing: Higher consumer spending will aid the industry, but intensifying competition will taper growth

The Cruise and Travel Agency Franchises industry has performed well over the past five years, especially compared with the US economy. Online travel websites, such as Expedia and Priceline, which weathered the storm better than their more traditional brick-and-mortar competitors, have become an increasing threat to the industry. However, the industry has saved itself by specializing in cruise packages, which are still mainly purchased through travel agents rather than online. Furthermore, the industry is likely to outperform the broader Travel Agencies industry over the next five years as consumers continue to book cruise vacations with their recovering incomes and returning confidence...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
3.4%
Forecast Growth 17-22
Profit
Employment
12,743
Businesses
7,311

Industry Threats & Opportunities

  • The popular reputation of cruises amongst consumers will continue to benefit the industry
  • Rising internet competition has rendered some industry services obsolete
  • Rising consumer spending will increase travel demand, which will benefit travel franchises
  • Industry Report - Industry SWOT Analysis Chapter

    The Cruise and Travel Agency Franchises industry is in the mature phase of its life cycle. While travel agents face increasing threats from travel websites and vendors that take online bookings directly, many travel agents have been able to grow by offering a higher level of personalized service to clients that websites cannot provide. Industry value added, which measures the industry's contribution to the overall economy, is expected to grow an annualized 3.1% over the 10 years to 2022. This compares with an annualized GDP growth rate of 2.0% over the same period. This indicates that the industry is expected to outperform the broader economy, as travel franchises have found profitable niches...purchase to read more.

    Additional Insights for the Cruise & Travel Agency Franchises Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cruise & Travel Agency Franchises Industry are

  • Have a clear market position
  • Ensuring pricing policy is appropriate
  • Ability to provide goods/services in diverse locations
  • IBISWorld analysts also discuss how external factors such as Consumer spending and commerce sales in the Cruise & Travel Agency Franchises industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Cruise & Travel Agency Franchises Industry?

    This industry includes franchised travel agent establishments that sell travel, tour and accommodation services and packages. Online sales are excluded from this industry. Reports in the IBISWorld Business Franchise collection focus solely on franchised outlet operations and exclude nonfranchise data. These reports show the total number of franchise outlets, total franchise revenue, the average profit margin earned by franchisees and the largest franchisers by market share.

    Industry Products
  • International and domestic airline bookings
  • Tour and packaged travel bookings
  • Accommodation bookings
  • Cruise bookings
  • Car rental
  • Other services
  • Industry Activities
  • Selling travel tickets
  • Selling tour packages
  • Selling accommodation packages
  • Table of Contents

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

  • Current Performance
  • Consumers drive revenue
  • External competition increases
  • Home-based agencies thrive
  • Chart: Revenue Growth

  • Industry Outlook
  • Traveling trends
  • Fierce competition
  • Slowing franchise growth
  • Table: Cruise & Travel Agency Franchises Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cruise & Travel Agency Franchises Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Domestic Airlines
  • Hotels & Motels
  • International Airlines
  • Ocean & Coastal Transportation
  • Rail Transportation
  • Scheduled and Charter Bus Services
  • Tour Operators

  • Products & Services
  • Cruise bookings
  • Tour and packaged travel bookings
  • International and domestic airline bookings
  • Accommodation bookings
  • Other services
  • Car rental
  • Chart: Cruise & Travel Agency Franchises Industry Products and Services Segmentation

  • Demand Determinants
  • Household income
  • The airline industry
  • Technology
  • Business travel

  • Major Markets
  • Leisure - international travel
  • Leisure - domestic travel
  • Corporate - unmanaged
  • Corporate - managed
  • Other
  • Chart: Major Market Segmentation for the Cruise & Travel Agency Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Cruise & Travel Agency Franchises

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cruise & Travel Agency Franchises Industry

  • Industry Globalization
    Travel Leaders Group LLC, CruiseShipCenters International Inc., CP Franchising LLC, World Travel Holdings,
  • Table: Travel Leaders Group LLC - financial performance
  • Table: CruiseShipCenters International Inc. - financial performance
  • Table: CP Franchising LLC - financial performance
  • Table: World Travel Holdings - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cruise & Travel Agency Franchises 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 Cruise & Travel Agency Franchises Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Domestic Overnight Trips (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    American Society Of Travel Agents (Asta)
  • The world's largest association of travel professionals, whose members include travel agents and the companies of the products they sell.
  • Brick-And-Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • Home-Based Agency
  • A travel agent is a person that sells, researches, and books travel arrangements for clients from a home office and does not have a brick-and-mortar retail location.
  • 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 Cruise & Travel Agency Franchises Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Cruise & Travel Agency Franchises industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 Cruise & Travel Agency Franchises:
    • 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 Cruise & Travel Agency Franchises 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 Cruise & Travel Agency Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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