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

IBISWorld’s Industry Market Report on Cruise & Travel Agency Franchises is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.


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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Products Chapter

    Traditionally, travel agents earned revenue through vendor commissions, mainly from airlines, as tickets were expensive, in demand and could only be ticketed by agents or the airlines. Travel agents also made commissions from hotel, cruise, car rental and packaged tour sales. However, this model changed dramatically in the mid-1990s, when airlines capped and then eliminated commissions paid to agents. This lack of vendor commissions severely disrupted the industry, and many agents were forced to close their doors. Today, travel agents make a greater proportion of their revenue through service fees charged to clients, rather than vendor commissions. Thi..

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    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..

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    Travel Leaders Group LLCCruiseShipCenters International Inc.CP Franchising LLCWorld 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

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Cruise & Travel Agency Franchises Industry
  • 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
    Jargon & Glossary
    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.
  • Why buy this report?

    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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