First Research US Industry Profile

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Travel Agencies & Services
SIC Codes: 4724, 4725, 4729, 7389
NAICS Codes: 5615
Last Quarterly Update: 5/6/2019
Companies in this industry arrange travel and traveler accommodations and include travel agents, tour operators, and other travel services like time-share exchanges, visitors bureaus, and ticket offices. Major companies include American Express Travel, Carlson Wagonlit, Expedia, Booking Holdings (formerly Priceline), and Sabre Holdings (all based in the US), as well as BCD Travel (the Netherlands), CITS (China), H.I.S. (Japan), Thomas Cook (UK), and TUI Travel (Germany).
Annual revenue from worldwide tourism, which includes travel agency services, is about $1.3 trillion, according to the World Tourism Organization. Travel agency services are prevalent in the countries that spend the most on tourism; tourist receipts, which includes travel arrangements and reservation services, are highest in the US, Spain, France, Thailand, and the UK.
The US travel services industry includes about 23,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $43 billion.
Competitive Landscape
Demand is driven by business and leisure travel, which depends on the economy. The profitability of individual companies depends on marketing. Large companies have an advantage in being able to provide a wider range of services, especially to corporate customers, and to afford sophisticated websites. Small companies can compete effectively by providing service to a few large customers, specializing in a service niche, or serving a local market. The US industry is fragmented: the 50 largest companies account for about 45% of revenue.
Two major factors have shaped the industry in recent years: sophisticated pricing schemes developed by the airlines to maximize profitability, and the emergence of online travel information and booking services. The continued growth of alternative lodging services such as Airbnb could reduce demand for travel agencies that focus on booking hotel rooms.
Products, Operations & Technology
Major services are reservations or tickets for airline flights and lodging, as well as leisure cruises and packaged tours. Commissions and fees for reservation ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

02/04/2019
10/29/2018
07/30/2018
04/30/2018
01/29/2018
10/23/2017
07/24/2017
04/24/2017
01/23/2017
10/17/2016
07/11/2016
04/11/2016
01/11/2016
10/05/2015
07/06/2015
04/06/2015
01/12/2015
10/13/2014
07/21/2014
04/28/2014
02/03/2014
10/28/2013
07/29/2013
05/06/2013
02/11/2013
11/05/2012
08/06/2012
05/14/2012
02/13/2012
10/31/2011
07/25/2011
04/18/2011
01/10/2011
10/04/2010
07/12/2010
04/05/2010